#DayTradingStrategy

⚡️ Day Trading Strategy: 5-Minute Opening Range Breakout (ORB)

Master the opening momentum with one of the most effective intraday setups: trading breakouts from the first 5-minute candle after market open (9:30 AM EST).

🧠 Core Concept

Capitalize on volatility and momentum by trading the breakout of the first 5-minute range — either long or short — based on price action, volume, and VWAP confirmation.

📊 Trade Setup

Market: U.S. Stocks or Index ETFs (e.g., SPY, QQQ)

Timeframe: 5-Minute Candles

Key Indicators:

✅ VWAP (Volume Weighted Average Price)

🔍 Pre-Market High/Low

📏 ATR (Average True Range) for volatility filtering

✅ Entry Checklist

Wait for the first 5-minute candle to form at market open.

Set Breakout Levels:

Buy Long if price breaks above the 5-min high.

Sell Short if price breaks below the 5-min low.

Confirm the Breakout:

🔺 Above-average volume

💪 Price staying above (long) or below (short) VWAP

❌ Avoid the Trade If:

No volume confirmation

Price is range-bound or choppy

Breakout is >1.5× ATR from open (potential overextension)

🛑 Stop Loss Placement

For Longs: Just below the breakout candle’s low

For Shorts: Just above the breakout candle’s high

Or use a fixed % risk (0.5% – 1%) based on your trading plan

🎯 Profit Targets

Aim for 2:1 or 3:1 risk-to-reward ratio

🟢 Take partial profits at 1R, then trail remaining with:

EMA

VWAP

Manual trailing stop

💡 Risk Management Rules

📉 Risk only 1% – 2% of your total account per trade

🛑 Limit to 2–3 trades per day to avoid overtrading

Always review your trading checklist before entering any position

✅ Pre-Trade Checklist

☑ First 5-minute candle range marked

☑ Breakout level identified

☑ VWAP direction aligned

☑ Volume spike on breakout

☑ ATR within acceptable range

☑ Stop-loss and profit targets set

☑ Risk within daily plan

Discipline + Simplicity = Consistency.

Use this strategy with patience and control, and you’ll be one step closer to mastering the opening bell.