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Playbook A

Opening Range Breakout

Trade the initial breakout of the opening range after the first 15-30 minutes of price discovery.

Market Conditions

—High volume expected (earnings, news catalyst, gap)
—Clear directional bias from premarket
—Market (SPY/QQQ) showing supportive trend

Setup Criteria

—Wait for opening range to establish (15-30 min)
—Range should be defined with clear high and low
—Volume building near range boundary
—Price consolidating before breakout attempt

Entry Rules

—Entry on confirmed break with volume surge
—Wait for candle close above/below range
—Avoid fakeouts by requiring volume confirmation
—No entry if range is too wide (defines risk)

Stop Loss

—Below range low (for long)
—Above range high (for short)
—Consider midpoint of range for tighter stop

Take Profit

—Target 1:2 risk-reward minimum
—Scale out at 1R, let runner go to 2R+
—Use prior day levels as targets

Invalidation

—Failed breakout with immediate reversal
—Volume dies after breakout
—Market reverses against trade direction

Mistakes to Avoid

—Entering before range is established
—Chasing after extended move from range
—Ignoring overall market direction
—Trading during low volume periods

My Rule

Only trade ORB when the setup is clean and volume confirms. No forcing trades on weak breakouts.