Open Range Breakout Strategy-Part 2

This article is all about the open range breakout strategy. We have already discussed this strategy within the range of 30 minutes. In this session, it is about the range of 15 minutes. After leaving the market idle for 15 minutes, we have to monitor the breakout whether it is high or low. I have taken HDFC stocks and after 15 minutes, if the high has broken out then yesterday’s high should also be broken out. This is the condition of this strategy. The second condition is that the Nifty should be 0.5% positive which gives an advantage. On Dec 2, the 15 minutes high and low are punched. The low of HDFC is about 2701.80 and the high is 2764.40. Yesterday’s high broke out at 2757. Then the today’s high has also broken out at 2764. Hence you can exercise by buying. You can implement the profit ratio as 1:2. You can maintain the low of this 15 minutes scandal as a stop loss. When you buy 2764, you would obtain a market high as 2809. Thus you have obtained a profit of about 35 points. You can buy and sell 25 stocks for your initial practice and you can also attend option trading if you have enough knowledge. 

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Example of open range breakout strategy
I have taken the stocks from Tech Mahendra. This is a beginner’s strategy that would be easy for them. Now let us have a look at how the conditions are applied in these stocks. On Dec 2, the market opened and there was a scandal for 15 minutes and after the 15 minutes, the high and low were punched. You have to check whether the high of today has broken out along with yesterday’s high. This is the condition of the strategy. Even in the trend formation, you would get a buy trend as a trend line. The high for Dec 2 is 1598 and yesterday’s high is 1594. It has broken out both today and yesterday’s high after two 15 minutes scandals. Now I have initiated the buy at about 1597. So far the market is high up to 1620. You can expect a decent profit. You need more practice for this strategy. You can attempt the testing with the Nifty 50 stocks. You can analyze with both top five gainers and top five losers. So that you can easily filter it out. 

You should not apply a trend when it is in a negative trend. The super trend also provides a buy trend. If you are technically sound, you can draw the trend. 

Here is another example with Adani Ports stocks. The 15 minutes open range breakout has a high of 699.80 and a low of 690 on Dec 1.  You cannot sell as the low has broken out. You have to monitor whether the previous day’s low has also broken out. It is a negative condition as the previous day’s low has not broken out in the graph. Suppose if you sell this in intraday trade, you would obtain a loss. It is not enough to have a low breakout on that particular day because the previous day’s breakout is also necessary. Thus on Dec 1, the previous day’s low had not broken out. On Dec 2, the range of 711 has punched high and the 702.60 was low in the 15 minutes range breakout. Thus it has broken out of today’s and yesterday’s high.

Yesterday’s high was 699.75. Thus you can attend these stocks. You can take the top gainers of Nifty 50 stocks for chart analysis for choosing. You can also prefer websites like chart ink intraday screener to choose.  When I initiated the buy above 711 and it went up to 730. Thus providing 20 points in Adani ports. You can buy 50 stocks or you can buy a premium in options and sell them. All you need is enough practice. The risk and reward may be in the ratio 1:2. When the stop loss is 2000 you would have a chance of obtaining 4000 as profit. When you attend this buying trend, you must make sure that the Nifty 50 is positive. You can also check the super trend indicator and it also indicates the buying trend. If the indicator does not provide the buying trend you can avoid it. You can contact the number in the description for further clarifications.