The ORB strategy is short for Opening Range Breakout, which means "breaking the opening range," and it is one of the popular trading strategies, especially in fast-moving markets like cryptocurrencies.
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#BNBBreaksATH #CryptoClarityAct $ What is the ORB strategy?
It relies on monitoring the price range in the first few minutes or hours after the market opens, then entering a trade when this range is broken upwards or downwards.
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✅ Steps to apply the ORB strategy:
1. Determine the opening range:
Usually, the first 15 minutes to an hour after the market opens is monitored.
A horizontal line is drawn at the highest price (High) and the lowest price (Low) during this period.
2. Wait for a breakout from either side:
If the high is broken (Breakout) → Enter a buy trade.
If the low is broken (Breakdown) → Enter a sell trade.
3. Determine the stop loss:
Below the lowest price (in the case of buying).
Above the highest price (in the case of selling).
4. Take profit targets:
Either at a risk-to-reward ratio (for example, 1:2).
Or using previous support and resistance levels / other indicators (like Fibonacci or moving averages).