Opening Range Breakdown – Intraday Bears’ Favorite Setup!Hello Traders!
Today, let’s explore one of the most reliable setups for intraday traders – the Opening Range Breakdown (ORB) . This strategy is widely used by professional traders to catch early downside momentum when the market shows weakness right after opening. If executed correctly, it offers quick profits and tight risk management. Let’s break down how it works and how to trade it with confidence.
What is Opening Range Breakdown (ORB)?
The ORB strategy focuses on the first 15 to 30 minutes of market open . The idea is to mark the high and low of this initial range and look for a breakdown below the low – which signals bearish pressure. This setup works best on volatile days or when there’s negative sentiment in global cues.
Mark the Opening Range:
Track the high and low of the first 15 or 30 minutes of the market open.
Wait for a Breakdown Candle:
Look for a strong bearish candle closing below the opening range low with rising volume.
Enter on Confirmation:
Take a short entry just below the breakdown candle with stop-loss above the opening range high.
Target Previous Day’s Support or VWAP:
Your exit target could be based on previous day’s support, VWAP, or risk-reward ratio like 1:2.
Volume Confirmation is Key:
Avoid low volume breakdowns. Strong volume is what separates real breakdowns from fake-outs.
Ideal Conditions for ORB
Gap Down Open or Weak Global Cues – ORB works well when sentiment is already negative.
High Beta Stocks or Indices like BankNifty – These respond sharply to breakdowns.
No Major Support Below the Breakdown Level – Clean charts increase trade reliability.
Risk Management Tip
Keep your position size small and risk predefined. Don’t chase entries. Let the candle confirm the breakdown and only then execute.
Conclusion:
ORB is a favourite among experienced traders due to its simplicity and effectiveness. If you’re an intraday bear looking for high-probability setups, Opening Range Breakdown is something you must master.
Have you used ORB before? Let me know your experience or results in the comments!
