Trading the 15 minute ORB the MAX way!

Summary

In this video, Big Daddy Max explains the 15-minute opening range breakout (ORB) strategy for trading, focusing on options, futures, and Forex. He walks through the core concepts, including identifying key support and resistance levels and using the first 15-minute candle’s high or low to guide trades. Max emphasizes patience, trend recognition, and emotional control in trading. He shares personal success stories and highlights the strategy’s simplicity, proving its effectiveness across various markets. The video serves as a practical guide for traders looking to refine their techniques and achieve more consistent profits.

Takeaways

• 😀 The 15-minute orb strategy is effective for day trading, especially when using the first 15-minute candle high or low on assets like SPY, SPX, QQQ, and more.
• 😀 The strategy works across various markets, including Forex, commodities, and futures, but is particularly reliable during major market open times (e.g., China, London, NYSE).
• 😀 The key to this strategy is identifying the first 15-minute candle's body and wick to define support and resistance levels for the day.
• 😀 If there are 6 or more candles within the orb without a breakout, it suggests a choppy day ahead or a possible larger move later in the day.
• 😀 For scalping, the orb's breakouts can be used on shorter time frames (like 1-minute charts) to capitalize on quick price movements.
• 😀 The orb strategy helps to visually determine choppy or trending days, providing clear support and resistance zones to trade within.
• 😀 The strategy relies heavily on confirmations of breakouts, with traders looking for clear trend changes on both higher and lower time frames.
• 😀 On trend days, the orb strategy can lead to significant profits by catching breakouts after the initial candle, with traders riding trends for the rest of the day.
• 😀 A major aspect of success with this strategy is patience—waiting for confirmation of breakouts or trend reversals, and knowing when to invalidate a trade if the price structure changes.
• 😀 The orb method has led to successful trades, with the creator sharing personal experiences of consistent profits using this strategy across multiple trading accounts.
• 😀 The orb strategy is particularly suited for day trading and scalping, but it can also be applied to short-term trend following, offering flexibility for various trading styles.

Q & A

What is the 15-minute orb strategy mentioned in the video?

The 15-minute orb strategy is a method used by traders where they identify the high and low of the first 15-minute candle after the market opens. This range is used to define a support and resistance zone for the rest of the trading day, guiding traders on when to enter and exit trades.

How does the orb strategy work for determining market trends?

The strategy relies on observing whether the price breaks above or below the 15-minute orb range. If the price stays within the orb, the market is considered choppy, but if it breaks out, it suggests a potential trend move either upwards or downwards. The strategy helps traders visualize support and resistance levels clearly.

What are the key confirmation signals in the orb strategy?

Key confirmations include a break of the orb's high or low, along with subsequent candles that confirm the direction of the breakout (e.g., a lower low after a break to the downside). Traders look for a clear trend forming outside the orb, either bullish or bearish, to confirm their trades.

How does the orb strategy apply to different types of markets like forex or futures?

The orb strategy works across multiple markets, including futures, forex, and equities. For forex traders, it’s particularly effective during the major market opens (China, London, New York). The strategy can be adapted to different assets, including commodities and stock indices, by applying the same principles of support and resistance.

Why is the orb strategy particularly useful for day traders and scalpers?

The orb strategy is useful for day traders and scalpers because it provides clear, short-term support and resistance levels. Traders can use these levels to make quick decisions based on breakouts or rejections, allowing them to enter and exit trades efficiently within a single trading day.

What does it mean if the price remains inside the orb for multiple candles?

If the price remains inside the orb for six or seven candles, it suggests the market is in a choppy range. This usually precedes a larger-than-expected move later in the day, or the market will continue to show little direction, maintaining the choppy conditions.

What is the significance of the 15-minute candle in the orb strategy?

The 15-minute candle is crucial because it marks the opening range for the day. The high and low of this first candle set the support and resistance levels for the orb, and breaking these levels provides a signal to enter a trade, either long or short, depending on the direction.

How can the orb strategy be applied to futures trading?

In futures trading, the orb strategy can be used to identify key support and resistance levels based on the first 15-minute candle. Traders can then use shorter time frames (like the 1-minute chart) to execute trades, entering long positions when the price breaks above the orb, or short positions if it breaks below.

What are some common mistakes traders make when using the orb strategy?

One common mistake is being too eager to enter a trade as soon as the orb is established. Traders may also fail to account for market chop when the price stays within the orb range, or they might not properly use invalidation points when the trend breaks down, leading to premature exits or bad entries.

How does Max manage risk when using the orb strategy in his trading?

Max emphasizes patience and following the orb strategy's confirmations to manage risk. He avoids entering trades based on emotions, and he exits when the price shows signs of invalidating the trend, such as when a new low is made in an uptrend. Max also mentions using smaller positions to chip away at gains, rather than risking large amounts on any single trade.