Intraday and sessions · Beginner
Opening range breakout (ORB)
Mark the high and low of the first minutes of the session and trade the break of that range, with the stop on the opposite side.
The opening range breakout was formalised by Toby Crabel in his 1990 book on short-term price patterns. The first minutes of a session concentrate the orders that built up overnight; when price escapes that range with conviction, it often keeps going for the rest of the morning.
Why it works
At the open, overnight orders, news and positioning collide. The opening range is where buyers and sellers first find balance. A clean break of it shows that one side has won the first battle.
The range also gives you an objective stop: if price returns to the other side, the idea was wrong.
The rules
Setup
- Choose a session open: the New York cash open (14:30 UTC in winter, 13:30 UTC in summer) for US indices, or the London open (08:00 UK time) for forex.
- Mark the high and low of the first 15, 30 or 60 minutes. Shorter ranges trigger more often but give more false breaks.
- Skip days when the opening range is already wider than about 1.5× the daily ATR: the move has happened.
Entry
- Buy when a 5-minute candle closes above the range high; sell when one closes below the range low.
- Aggressive alternative: a stop order a few ticks beyond the range.
Stop loss
- On the other side of the range, or at the middle of the range for a tighter stop.
Exit and management
- First target at 1× the range height from the breakout point; second at 2×.
- Close everything before the session's lunch lull or at the end of the session: it is an intraday trade.
Filters that improve it
- Trade in the direction of the higher-timeframe trend or of the previous day's close.
- Avoid days with a major release in the first hour (NFP, CPI, FOMC).
Worked example
Illustrative Nasdaq 100 example: between 14:30 and 15:00 UTC the range is 18,350–18,420 (70 points). At 15:10 a 5-minute candle closes at 18,431. Entry at 18,431, stop at 18,385 (the middle of the range, 46 points), first target at 18,490 (range height added to the breakout) and second at 18,560.
Illustrative numbers, not a recommendation.
Common mistakes
- Trading every break in a quiet, range-bound day: false breakouts are the norm without volume.
- Using a range that is too small, so normal noise triggers the trade.
- Holding the trade into the afternoon reversal.
How to practise it
In Candlemind choose US 100 or EUR/USD and read 5m candles around the session open (the session map marks London and New York). Draw the range with a rectangle and place a pending order beyond it.
Keep a separate record of 15m versus 30m ranges: after 30 trades you will know which works better for you.
Pre-trade checklist
- Range of the first 15/30/60 min marked
- Range not already wider than ~1.5× daily ATR
- Candle closed beyond the range
- Stop on the other side (or the middle)
- Exit before the session ends
Frequently asked questions
What is the best opening range time?
There is no single best. 15 minutes gives early, frequent signals; 30 and 60 minutes give fewer but more reliable breaks.
Does the opening range breakout work in forex?
Yes, using the London or New York open. Forex has no single open, so you pick the session that moves your pair.