The Opening Range Breakout Strategy That ACTUALLY WORKS

[00:00:00]Most traders completely misunderstand the opening range breakout. They see a breakout, they jump in, they get stopped out within minutes. But when you understand which opening ranges are worth trading and which opening ranges you shouldn't be trading at all, the ORB can become one of the cleanest setups that you will find. In this video, I'm going to show you exactly how I trade it step by step. and we'll jump straight into chart examples. Let's get started.

[00:00:32]Now, this strategy is different than anything that you have seen. Any single video on YouTube has shown you the same exact stuff. I guarantee that to you that you haven't seen a strategy such as this one. So, pay very close attention.

[00:00:48]First of all, how are we going to be on the same exact page? I want you to go to your trading view platform and then click on the bottom right right here as you can see where it shows the time and please go ahead and choose UTC -4 New York. This is EST time. So now we have the same exact time all of us so that we can communicate properly. Second step very simple go at 9:25 a.m. EST time. So now you are on EST time. We go with our replay tool in this occasion and we go at 9:25 right here.

[00:01:28]You are on the 5minut time frame.

[00:01:31]Remember that once again you are on the 5inut time frame. So EST time we go in front of our PCs at 9:25 a.m. New York time on NASDAQ on the 5minut time frame. And all that we are doing here before the open, the open is at 9:30 a.m. New York time. I want you to highlight the most recent, let's say, a range, but I want you to highlight the most recent high point, let's say, and the most recent low point. Those are the points that I see right here. The most recent high and the most recent low are those points that I have highlighted exactly right here. Now, I'm not going to give you the same crap that everyone else is giving you on YouTube, which would say, as an example, that wait for a close below and enter and all of that But what I will tell you is wait for a very, very clear break of either the high or the low. As an example, this is not enough of a break.

[00:02:36]Follow me. I'm going to show you more examples. Wait now for a clear break which is not this right here is not a clear break of either the high or the low. Now we have a pretty clear break right here. As you can see it's not just one candlestick. It is another one. And by the way this can keep going down for quite a bit. Let's say but we don't care about that. Now all we want to see is a candlestick of the opposite direction.

[00:03:05]on a 5-minut candlestick of the opposite direction which is now going to close back within this range. It doesn't matter if it closes here or here or here. Let's see if we get such candlestick right now. We get such candlestick. I want you to take the trade as it is. So what do I mean by that? You buy with a market execution now that the 5minut candlestick has closed. Chris, where am I placing my stop loss? Because this is huge actually right here and you don't need to place such a huge stop loss because if our premise of price now having manipulated and going on the opposite direction is correct then it shouldn't come down again. So you can place the stop loss safely in this occasion below the body of this candlestick very safe and you can target easily a 2:1 reward to risk.

[00:03:59]Let's see if this plays out and if we win this trade. Okay, very nice. You can see that we win this trade quite easily.

[00:04:08]As easy as we are winning our trades during the live sessions and with the things that I'm teaching for free in my Discord, I have the link to free access for a lifetime in my Discord down in the description. You don't need to pay anything. Come and join the community and join the live sessions that we are doing almost on a daily basis. link down in the description. 100% free access.

[00:04:32]Let's move on to another example. Now, here we have yet another example. And we are again on the 5minut time frame at 9:25 a.m. EST New York time. What did we say that we're going to do? We are going to be highlighting the highest and the lowest points. We want the most recent ones. We want to create a range. This is the highest as I see it right here. And which one is the lowest? I wouldn't go as far back as this one. I would say the lowest. And this is the lowest as well is this one right here. So let's proceed and see if the high or the low are being broken first. And if there is a considerable break with at least two candlesticks. Let's see. Here we go.

[00:05:22]9:30 has arrived. We have one candlestick. We need to see a followup.

[00:05:27]So if you don't see yet another candlestick, don't do anything, please.

[00:05:32]Okay. So you don't see another candlestick. Let's see. We break from the other direction. We want to see now at least another candlestick from the other direction following this candlestick. We see that now if we close with a bearish body inside this range, we are going to go ahead and we are going to go short. Easy as that. Short trade right here. Now again, this stop loss is kind of huge. You can even say that you can place the stop loss, let's say, at half of this candlestick or even a little bit higher right here. If price is to have manipulated correctly, it's not going to come back at all. You can also, of course, place the stop- losses very safely if you want, but I would advocate that you don't do that. There is no purpose in doing that. you are going to be sacrificing a lot of RR with this strategy. You can go for way higher than a 2 to1 RR as well. Let's see how this plays out now. Okay, a little bit of retracement as you can see right here. Just a little bit. Nothing so scary because the premise is correct.

[00:06:42]And here we go. And we win the trade.

[00:06:44]Now, if you would have placed the stop loss above this area, as I told you, you would have still won the trade with this candlestick right here. But as you can see, this trade ran for more and more and more. So, with the initial stop-loss that we had somewhere around here with this trade, you could have had a 13 to1 within one day. wins such as the ones that you can have if you master my crease effects block strategy which is absolutely free. The link to my free Discord is down in the description. Join us and also I have code Chris Effects for the best futures prop firms. We are doing enormous giveaways every single month. I have the best futures prop firms down in the description. If you use code Chris Effect, you're going to get the highest discount available in the market. Also, join the free discord as I said. And let's move on to example number three. And here we are with example number three. We are on NASDAQ.

[00:07:47]We are on EST time. We are on the 5m minute time frame at 9:25 EST time, A.M. EST time. we come in front of our charts and we go ahead and we highlight the most recent high and the most recent low. Now, from what I can see right here, we can either go ahead and highlight this most recent low or we can go ahead and highlight this current candlestick. I would highlight this one back there. And the most recent high is pretty apparent which one it is.

[00:08:19]It is this one. I'm not going to go with this very tiny range right here. Okay, I'm gonna wait for either the high or the low to be broken with not one body, at least two bodies of a fivem minute candlestick. As I told you, nothing yet.

[00:08:37]We have a break. We extend of the high.

[00:08:39]We extend that to the right. We don't know if this is going to reverse instantly. We need to see at least one more bullish candlestick. Let's see.

[00:08:48]Nothing. Okay, now we have it. Now, if we come back into the range with a bearish candlestick, then we are pretty safe to go on and take our trade. Let's check it out. And here we go. We are back in the range. Simple as that. You take the short here. Let's see. Stop loss. It is kind of large, but you can place it somewhere around here. Let's say it is absolutely fine. You don't even need to go above this candlestick.

[00:09:19]Really, believe it or not, if you catch the correct move, price is not going to come back again because it has done the manipulations. Go ahead and target a 2:1 reward to risk. Let's see how this plays out. And every single strategy also has losses. And it would be a shame if I wouldn't be showing a loss as well. This is your loss right here. And of course, it's not preventable. you are going to be having losses with every single strategy. And look at that. That what I'm going to show you right here. Price stopped you out and then immediately came back. Not even that in the theoretical scenario that it would have gone to your direction, you wouldn't have hit your 2:1. You would have just hit 1.8 to1 and still you would have lost the trade. Very important that we show losing examples as well. Once again, if you want to support the channel and enter the massive giveaways, you can use code Chris Effect on the best futures prop firms that I have down in the description. You can click on my link tree. It will take you to the best futures prop firms code Chris Effect for the highest discounts and enter the free discord. It is 100% free. You don't need to pay anything for a lifetime. So, I'm not asking anything from you. just come and be part of the team. I promise that you will not regret it. Furthermore, we're going live every single day, as I said, at 9:30 a.m. New York time. So, go ahead and join the live sessions. This is going to do it for today. Thank you all for watching. Until next time.