[U-i-T]

I want to learn more aboiut the 15 min opening range breakout. I’ve heard it works well on stocks with high volume and a catalyst like earnings or news. Anyone found this?

I also read some traders prefer the 5 min ORB, but does 15 mins help avoid fakeouts?

Do you trade opening range breakouts? or do you prefer other strategies at the open?

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[Christian Harris]

I’ve traded opening range breakouts before but had mixed results.

When high volatility and volume confirm the move, they can be great for quick profits.

But false breakouts and whipsaws have burned me too many times, especially on choppy days.

Recently, I’ve found success using the average true range (ATR) to set limit orders and take profits based on the 1-hour opening range, which helps filter out noise and improves my risk management.

By giving the market time to breathe and the initial volatility to settle, I’ve found that I can determine stronger setups, such as pullbacks or trend confirmations.

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[U-i-T]

Christian, thanks for sharing this. I’m going to backtest this ATR setup and see what comes out

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[Christian Harris]

Another TA tool to look at is pivot points.

Pivot points are widely used by many traders, including floor traders, as a “road map” for day-trading.

The Standard pivot point calculation method, also known as the Classic or Floor method, uses the previous period’s high, low and close price to calculate the current period’s direction/sentiment, as well as future support and resistance levels.

The theory states that when prices trade above the pivot point, the sentiment is assumed to be bullish. Thus the market is likely to appreciate and move in an upward direction.

On the other hand, when prices trade below the pivot point, the sentiment is assumed to be bearish. Thus the market will most probably move in a downward direction.

Take a look at today’s EUR/USD chart for example.

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[U-i-T]

I had some concerns about algo trading and HFT dominating the markets these days.

Do you think pivot points are losing their effectiveness compared to the past?

I know floor traders relied on them heavily, but in today’s fragmented markets, do we need to adjust them?

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[PipPredator240]

Nope. too many false breakouts and slippage issues to make it profitable in my book.

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