Awesome Day Trading Strategies (85 lessons)
Next Lesson in this Course:

Day Trading an Opening Range Breakdown | Tradingsim Video Lessons

0 Flares Twitter 0 Facebook 0 Google+ 0 0 Flares ×


The Opening range Breakdown (ORB)

One of my favorite day trading setups is an opening range breakdown on a morning gap. What I look for in the ORB is a strong gap down with larger than normal volume. I want to see the stock taking out key support areas and ideally like to see it breaking to multi-month lows with little in the way of downside support. It is also important that you exercise patience in the morning and stalk the trade. The initial move down on the open is typically supported and a small relief rally ensues. You want to be careful not to get caught up in any short squeeze. Let the dust settle in the first 15 minutes or so and let the trade come to you. Ideally, you will get the squeeze higher and then watch that bounce quickly fizzle out and head back down to the lows of the day. Stocks gapping down into strong support areas are bound to test those levels multiples times before cracking through these levels. You may need to give it some time to setup and you may even need to take a couple small losses if the short doesn't go in your favor in a hurry. This is where your discipline will come into the picture. You are not going to get every trade right. Even though the trade might eventually work out, your timing might not be ideal. Word to the wise, take quick losses in the morning and don't be afraid to put the trade back on if it tries to go in your direction again.

Click on our youtube video below to see how we traded an opening range breakdown on SYF. If you liked our video, subscribe to our YouTube channel to see more trade reviews!

If you enjoyed the video, please "like" us on Youtube. If you want to learn how to trade like a professional, use Tradingsim to build your trading acumen, instinct, and money management. Click Tradingsim 7 day free trial to take our 7 day trial.

Related Post

Why Tradingsim Rocks!

More Courses in Day Trading
Awesome Day Trading Strategies

Welcome to the Tradingsim Day Trading Strategies home page, where you can find over 90 trading strategies. We cover everything from technical analysis to price action techniques..

Day Trader Salary

Day Trading Basics

he Tradingsim day trading basics category provides a number of articles that can help you get started on your trading journey. In addition to these articles, you can also test drive our trading simulator which uses real historical tick data. There is no credit card required to try out the application and we also offer a free trial period.

Day Trading Indicators

Welcome to the Tradingsim Day Trading Indicators category page. You will find a host of articles that discuss specific trading indicators and how you can use them to improve your trading results. Once you are ready to apply these skills in the real world, do yourself a favor and take a test drive of our trading simulator. We believe in our product so much, we offer a free trial period with no credit card required to try out the application.

Day Trading Money Management

Day Trading Penny Stocks

Day Trading Performance

Day Trading Platform

Day Trading Software

Looking for day trading software? Well check out the day trading software category on Tradingsim where we discuss the technology behind active trading.

Day Trading Taxes

Day Trading Videos

Welcome to the Tradingsim video library. We are constantly adding day trading videos, so sit back, relax and enjoy the show.