Description
The opening range breakout strategy is a popular intra day trading strategy that has been around for some time. This indicator draws levels at the high, low, and target so you can easily input the prices into the order entry window in ThinkOrSwim. The configurable options include:
- range start time: The beginning of the day’s range (usually at market open, e.g., 0930)
- range end time: The length of range for the strategy you’re trading. A 5 min opening range breakout strategy would use 0935 for this value. A 30 min ORB would use 1000.
- stop loss padding: The amount of padding you would like to give the stop loss. The default is 5 cents below the low of the opening range candle.
- r value: The risk value. If you’re trading 2R all or nothing, you would enter 2 for this value. This would set the target to 2x opening range + high of opening range. 1.5 for this value would set the target to 1.5x range + high of opening range.
- position direction: Choose from long or short
- risk: Input your risk per trade to calculate share size
- show Shares Label: Setting to yes calculates share size based on your defined risk. The label appears in the upper left of the chart and is calculated as the risk divided by the orb bar range (including any stoploss padding).
- extend price line: Set to yes to extend the price line across the entire chart
Check out my awesome strategy to print money with this indicator. If you’re using this for an opening range breakdown, you need to know how to short a stock on Thinkorswim. Good luck, and happy trading!
Installation
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