This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Wallstreak user StreetSmack has sent some charts that illustrate good entry points for trading gaps. I’ll be trading this style today. I traded 13 positions for a breakeven result yesterday, so today I’m trying something different. Like Trader-X style trades, the idea is to trade in the direction of the gap after a candle close very near or above a high watermark. X used the OR high as that mark. StreetSmack elaborated on his watermark a bit over on Wallstreak.
Here’s the charts showing example entry setups:
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
August 2nd, 2007 at 11:24 am
Could you send me an explaination of ORH, ORL, IOR, INR, OR…. ETC. The blog is very helpful thanks for your efforts!!
thehaul
August 2nd, 2007 at 1:38 pm
ORH = Opening Range High. The high of the first XX minutes of trading, whatever you choose. 15 min, 30 min, and 60 min are common choices. On my charts, if I’m trading the 15 minute timeframe, it’s the high of the first candle.
ORL = Opening Range Low. Same as above, but it’s the low.
OR = Opening range
IOR = Inside of the opening range (I think)
INR = Inside Narrow Range bar (again, I think). This means a narrow range bar that is also completely inside of the prior bar.
August 2nd, 2007 at 1:53 pm
After reading through oonr7’s blog recently, I’m starting to get behind the idea of choosing the first full swing up or down as the opening range, no matter how long it takes. It’s way less arbitrary sounding, to me. So if the first three 15-minute candles make new highs, then I’m taking 45 minutes as my opening range.