ORB + CPR Strategy: Pro Tips.

   ORB + CPR Strategy: Pro Tips.

ORB (Opening Range Breakout) Strategy is one of the widely using day trading strategies. But many of the retailers losing money by using this strategy, why?

Professional Traders using ORB Strategy in a different way. They chose only certain stocks for the ORB strategy. Their trade execution is also different from retail traders. Here we are discussing how we can trade Opening Range Breakout like a pro.

 

Stock Selection

Choose only Narrow CPR stocks or Inside Value CPR stocks for Breakout trading. What is the importance of narrow CPR stocks or Inside value CPR?

Narrow CPR stocks and Inside Value CPR stocks has a high probability, to be trending on next day. (Read the detailed article on CPR Secrets, in this blog)

 

Execution.

Mark the high and low of the first 30-minute candle’s range.

 

Buy Condition

The Price should be above VWAP.

RSI should be above 60.

The sector of that particular stock should be positive.

Breakout candle should have more than average volume.

 

Sell Condition

The price should be below VWAP

RSI should be below 40.

Sector of that particular stock should be negative.

Break out candle should have more than average volume.

Stoploss.

 BUY Entry: Stoploss should be below VWAP.

SELL Entry: Should be above VWAP.