Gowri_1.0 After going through various ORB stratergy, I wrote this pine script. This gives exact risk and quantity in the right side panel. so, risk management is always taken care of.
When to use: wait for the first five minutes after the market opens.
Which stocks: use with Market gainers after the first five minutes based on the signal.
Risk/reward: Say you have a capital of 50,000 and you want to risk 2% on one trade. So the risk comes out to be 1000. Means you can risk 1000 on one trade.
Let's say the stop loss on your setup comes out to be 5. Just divide the stop by the risk and that's the no. of shares you should trade. In this case 1000/5=200 shares.
Hunt for your targets:
Look for 1:1 or 1:2 target depending on the stop loss. If the stop is wide then go for just 1:1 or else go for 1:2
Tips for short plays:
This strategy works well on long trades rather than on the short side. As on the short side the action, most of the times, is very huge in the first 5 min bar which increases the risk on the trade. However you may apply ORB on the short side If the action is not very strong on the first bar and the stock actually develops a range for the first 30 minutes or so and then breaks it.
Orb15min
ORB 15 Min By EquityDurai#Let the index/stock trade for the first fifteen minutes and then use the high and low of this "fifteen minute range" as support and resistance levels.
#A buy signal is given when price exceeds the high of the 15 minute range after an up gap.
#A sell signal is given when price moves below the low of the 15 minute range after a down gap.
#It's a simple technique that works like a charm in many cases.
>If you use this technique, though, a few caveats are in order to avoid whipsaws and other market traps.
>The most common whipsaw is a trading range that lasts longer than 15 minutes.
>If an obvious range builds in 20, 25 or even 30 minutes , use those to define your support and resistance levels.
>Also consider the higher noise level in the morning.
>A breakout that extends only a tick or two can be easily reversed and trap you in a sudden loss.
>So let others take the bait at these levels, while you find pullbacks and narrow range bars for trade execution.
