Monday, January 26, 2009

Opening Range Breakout


Place fibs from early pivot high/low and trade the opening range breakout (ORBO) or pullback to the R-zone.

Recently, most of these trades generate 50-100% extension and retrace, because the markets are range bound and can't get any traction.



Planned Trade:


After the Breakout Trades, I look to the 15 minute timeframe for some higher quality setups that have a better chance to run. Yesterday I posted this chart of RIMM.

And today, after the initial test of the PDL, it retraced to the R-zone, but couldn't close above Fib. 50%, so it was just a matter of time, before it fell back down.

4 comments:

Tyler said...

Jamie,

Nice trades. I especially like the trade you had in RIMM (15 MIN). It is always nice to see that a chart I have analyzed winds up on your site. It makes me feel like I am getting somewhere.

I can't wait to see what you have tomorrow.

Thanks,
Tyler

JF David said...

49.40 was 50% retracement of the last 6 day uptrend.

Jamie said...

Thanks Tyler,

A few trade ideas for tomorrow posted above.

Jamie said...

JF,

Good observation!