Archived: Opening Range Breakout

[tomsk]

There are literally hundreds of different versions of ORB out there so you'll need to examine the algorithm for implementation details
For those who are interested about the initial risk found SPECIFICALLY in Mobius ORB V3(B) that I posted above, here's what I know.

input InitialRisk = 1.00; #hint InitialRisk: Amount of Risk your will to take opening a trade.

According to Mobius the author of V3(B), the initial risk lines are set according to your risk tolerance depending on the underlying security being traded. He typically uses 2 on /ES, 4 on /NQ, etc depending on how volatile the underlying market is. When the market is ultra volatile that level is adjusted accordingly. Most folks here have not seen what volatile conditions mean, the flash crash of 2010 was one such outlier event. It was phenomenal

 

[anycolour]

Can I please get links for the ORB (What does it even stand for? Is it Open Range Breakout?) and Pivots Mobius uses? So many stuff comes up, that I don't know what is what. Thanks

 

[tomsk]

Here are the original links that Mobius posted when he released those studies

ORB

https://tos.mx/Mv8KjU
Trend Pivots

https://tos.mx/elsnvbq

 

[anycolour]

Thank you! What is considered the Opening Range? The 1st hour after cash open/regular trading at 9:30am Eastern Time?

 

[tomsk]

The way that Mobius uses it, his opening range setting should be configured as default in the study, 1st 30 minutes of the day. Read the study, it's all in there including his extended notes on how he interprets it

input OrBegin  = 0930.0; #hint OrBegin: Beginning for Period of Opening Range Breakout.
input OrEnd    = 1000.0; #hint OrEnd: End of Period of Opening Range Breakout.

 

[switchfire]

Does anyone have any suggested SuperTrend settings to use in conjunction with ORB? I'll probably go with the 5 & 15 min charts, as I'm trading /MES contracts. Does Mobius say which time frames he uses this on? Forgive me if I missed it somewhere, as I've been reading about this all night lol. Really interested in this indicator and can't wait to test it out. Thanks!

 

[tomsk]

@switchfire Sounds like you may be new to ORB so let me inject some info to being you up to speed

The ORB study is plotted for Regular Trading Hours from 9:30 to 4:00 daily with the opening range typically the first 30 minutes of trading when the overnight orders are cleared and any market moving news is released. ORB was designed to start at the cash open. Any other time and it’s just a high low timed range with no real value.

Opening Range is the overnight distribution and occurs within the first 30 minutes of trading. The high and low of that range are the boundaries. Breaking those extremes is the ORB opening range breakout. The mean of the first 5 minutes compared to the opening range determines with about 70% accuracy the closing direction for the day.

 

[tomsk]

Well I can tell you that Mobius does not use SuperTrend in conjunction with the ORB, there's absolutely nothing to stop you from doing do if you feel that gives you an edge. Why not experiment with that first and then decide. Best of luck!

 

[ezrollin]

Is this best for the 5 min charts?

It says "green indicates a close at eod above the yellow line" ... well that wasnt true based on the chart i'm looking at

 

[switchfire]

Is this best for the 5 min charts?

It says "green indicates a close at eod above the yellow line" ... well that wasnt true based on the chart i'm looking at

I've found 15 min charts most useful for ORB.

 

[ezrollin]

Has it been answered what the Price Line is? thanks

 

[horserider]

@ezrollin priceline is just a horizontal line drawn across the whole chart at the current price.

 

[ezrollin]

I see now, its the close

 

[locotenentupenni]

Hello I'm using this study which i got from here that basically plots the lines of the 15 min and 30 min opening range breaks. You can find the study here. My question is why doesn't it always plot the lines property. It seems to plot the 15 min and 30 min only if the stock is in a uptrend or a downtrend, however if its a choppy mess for the first 15 min it wont plot the line.

Here is an example of FB ( top chart) HAS (bottom chart) Facebook ploted both 15 and 30 min lines and HAS only what seems to be opening candle line. Your thoughts are appreciated

 

[BenTen]

@locotenentupenni Which version of ORB are you currently using? Is it from the first page of this thread? A 15m opening range will plot the highest and lowest point of the stock within the first 15m of opening. It doesn't matter if the stock has been in an uptrend, downtrend, or sideways. The same applies to the 30m range.

 

[ccurtin]

What time settings would you adjust for futures, @BenTen ? I mostly trade the E-Mini Russell 2000.

 

[BenTen]

@ccurtin This indicator is time-based, so I assume you would need to adjust it to futures opening range.

 

[ccurtin]

@ccurtin This indicator is time-based, so I assume you would need to adjust it to futures opening range.

It looks like the time setting is 930 for 9:30 am est. What would it be for 6 pm EST Sunday night? Thanks.

 

[C4men]

You are probably all going to hate me...

I really like this ORB (I'm using the one with the red and green clouds). I understand how it works and I can easily adjust the time to be the first 15 minutes. But where I am struggling is the scan and would greatly appreciate someone walking me thru it.

Is it possible to:

• Scan the world of stocks, post-breakout period
• Look for stocks that have a candle with a price closing above the green line (or below the red)
• And have the stock added to a watchlist
• Throughout the day (or maybe on a regular scanning frequency; not sure if this can be continuous)

Bottom line: I am trying to get alerted the moment something enters the breakout or breakdown zone, and continually add to the list.

@BenTen I think I might have asked this in a more confusing way earlier, so I apologize in advance.

Any help from the community is greatly appreciated!!!

 

[BenTen]

@C4men Sure, you can create a scanner and then save it as a watchlist and get alerted for new changes within that watchlist.