Every trading day begins with a burst of energy…
Prices jump, pull back, and whip around as traders digest overnight headlines, earnings reports, and global events.
And Monday mornings are when this excitement really bears fruit for traders…
Why?
Every Monday, the market kicks back into gear after its weekend nap… and that reset creates a unique opportunity.
As the first session of the week gets started, there’s a specific pattern we look for that appears again and again with uncanny consistency.
And it has delivered some unbelievable gains!
Look at this massive winner from yesterday…
After announcing a major blockchain deal, Maison Solutions (NASDAQ: MSS) skyrocketed over 600%*!
We hunt for these kinds of Monday morning spikes every single week.
Now it’s time to learn how to spot them for yourself… Don’t miss the next one!
Watch the video below for the full trade breakdown and strategy tutorial on my Monday Setup.
For many, the early trading chaos feels overwhelming…
But for prepared traders, it can offer some of the clearest signals of the day.
Table of Contents
What Is the Opening Range Breakout?
One of the most time-tested ways to take advantage of early market action is the Opening Range Breakout (ORB) strategy.
This method zeroes in on the highs and lows reached during the first part of the trading session, usually during the first 30 to 60 minutes. That range becomes the day’s first major benchmark.
When prices break above or below it, traders get a signal that momentum may continue in that direction.
In simple terms, a breakout above the range suggests bullish strength, while a breakdown below the range signals potential weakness.
To learn all the patterns and setups I teach, check out my Daily Income Trader System.
You’ll also get trade alerts, my current watchlists, and much more…
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Learn more about it during one of our free daily webinars.
How the ORB Strategy Works
The idea behind ORB is straightforward…
Early moves often dictate the tone for the day. If the market pushes through the initial high with conviction, it often triggers more buying. If it slips below the early low, selling pressure tends to follow.
Traders use this strategy to capitalize on the fact that opening moves reflect strong sentiment, whether it be a reaction to overnight news, global events, or institutional positioning.
ORB is especially popular on volatile days, when clean setups can emerge quickly and decisively.
Why Traders Like the ORB
One of the biggest strengths of ORB is clarity. Many strategies leave traders guessing, but ORB offers clearly defined entry and exit levels.
Stop losses can be set just inside the range, and profit targets are planned based on risk/reward ratios. That structure helps take emotion out of the trade.
It’s also adaptable to multiple timeframes. While most traders use it for intraday setups, the same principles can be applied to swing trading.
Building Discipline Into ORB
No strategy is ever perfect… Don’t let anyone ever tell you that! ORB is no exception. False breakouts can and do happen, especially in choppy or low-volume conditions.
That’s why risk management is baked into the system. Traders often use tools like VWAP (Volume Weighted Average Price) or ATR (Average True Range) to filter out weak signals.
Consistently defining the opening range, confirming the breakout with volume, and sticking to stops will separate you from traders chasing every flicker of price action and ending their day holding the bag.
Steps for Trading the ORB
- Define the opening range using the high and low of the first 30–60 minutes.
- Identify nearby support and resistance levels.
- Watch for breakouts with strong volume confirmation.
- Place stop-loss orders inside the range to limit risk… Remember, always set your stop before you hit “buy.”
- Enter trades just outside the range.
- Set profit targets with a favorable risk/reward ratio.
These steps may sound mechanical, but that’s the point. A structured system keeps traders from overthinking and second-guessing.
My Final Thoughts…
The Opening Range Breakout isn’t just another technical pattern but a framework that channels the energy of the market open into disciplined trading decisions.
By focusing on early momentum, filtering it with risk management, and sticking to clear rules, traders can turn the chaos of the open into a potential profit opportunity.
For those willing to put in the practice, the ORB can be more than a strategy…
It can be the cornerstone of a trading plan built on clarity and momentum.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
Don’t mistake this trade for a winner.
Win big from the other side of a short sale.
Here’s the strategy I use to make my trade plans.