The opening range breakout strategy defines a price range during the first fifteen to thirty minutes of a trading session and trades the breakout in either direction. The opening range captures the initial battle between buyers and sellers, and a decisive break above or below this range often sets the tone for the remainder of the session, making it one of the most popular intraday strategies.
The opening range is typically defined as the high and low of the first fifteen or thirty minutes. A breakout above the range signals bullish sentiment for the session. A breakout below signals bearish sentiment. Volume on the breakout candle should exceed the average volume during the opening range. Failed breakouts (fakeouts) are common and require strict stop management. Pre-market levels, previous day high and low, and VWAP provide context for which direction is more likely to hold.
Enter long when price closes above the opening range high with increased volume. Enter short when price closes below the opening range low with increased volume. Use a pullback to the broken range boundary for a lower-risk entry. Confirm with VWAP direction — a breakout in the direction of VWAP bias has higher probability.
Stop just inside the opening range on the opposite side of the breakout. Target one to two times the height of the opening range projected from the breakout point. Time-based exit: close by the end of the session if the target is not reached. Exit immediately if price returns fully inside the opening range after a breakout.
1M, 5M, 15M
The opening range breakout works best in markets with defined session times such as equities and futures. In crypto, consider using the opening of the London or New York session as your reference period. Avoid trading the ORB on low-volatility days when the opening range is unusually narrow — false breakouts are more likely.
The Bollinger squeeze scalp identifies periods when Bollinger Bands contract to their narrowest width, indicating extremely low volatility that typically precedes a sharp expansion. By measuring the bandwidth or using a Keltner Channel inside the Bollinger Bands as a squeeze indicator, traders anticipate the explosive breakout and scalp the initial directional move that follows the compression.
1-minute scalping uses pure price action — candle patterns, micro-structure breaks, and support/resistance — on the 1-minute chart to capture small moves (2-10 ticks in futures, 5-20 pips in forex). This is the fastest form of discretionary trading, requiring rapid decision-making, tight spreads, and minimal latency.
Tape reading analyzes the real-time stream of executed trades (Time & Sales) and the order book (Level II / DOM) to identify institutional activity. Tape readers watch for large orders, icebergs, spoofing, and absorption patterns to scalp entries ahead of imminent price moves. This is the most granular form of order flow trading.
Spread capture (also called 'scalp the spread') involves placing limit orders on both sides of the bid-ask spread to earn the spread difference. In liquid markets with tight spreads, high-frequency traders and skilled scalpers use this technique to accumulate small profits from market-making activity. This requires the fastest execution and minimal latency.