SSViewers.com offers a comprehensive guide on one of the popular trading strategies, the Opening Range Breakout (ORB). The ORB strategy is designed to take advantage of the price volatility that occurs during the opening of a financial market. This trading strategy can be applied to any financial market, including stocks, commodities, and forex.
The ORB trading strategy involves identifying the high and low points of the price range within the first hour of trading. This range is commonly known as the "opening range." Once the opening range is identified, traders can set their buy and sell orders above or below this range, anticipating a breakout in the direction of the market trend.
SSViewers.com provides a step-by-step guide on how to apply the ORB strategy effectively. The first step involves identifying the opening range and determining the buy and sell levels. Traders must set stop-loss orders to limit their losses if the market moves against their position.
One of the significant advantages of the ORB trading strategy is its simplicity. Traders do not need to have extensive technical analysis knowledge to apply this strategy effectively. Additionally, the ORB strategy is a short-term trading strategy that can be used by day traders to capture small price movements in the market.
SSViewers.com highlights that the ORB strategy is not foolproof and does come with some risks. For instance, false breakouts may occur when the market moves in one direction, only to reverse and move in the opposite direction. Therefore, traders must set stop-loss orders and avoid trading during periods of low volatility.
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