Master the Open: A Day Trading Guide to the First 15 Minutes
The first 15 minutes of the trading day are full of energy. Traders respond to overnight news, economic data, and pre-market moves. It's fast, volatile, and full of opportunity. One strategy that harnesses this energy is the Opening Range Breakout, or ORB.
The ORB strategy uses price action in the first part of the session to determine potential breakouts or breakdowns. It's a favorite of many professional traders because it focuses on structured entries and quick momentum plays.
In this article, we’ll walk through the strategy step by step. You’ll learn how to choose the right stocks, how to define the opening range, and how to manage risk like a pro.
What Is the Opening Range?
The opening range is defined by the high and low of the first 15 minutes after the market opens. This window reflects the initial balance of buyer and seller activity. The strategy revolves around waiting for price to break out of this range and then riding that momentum.
Some traders use a 5-minute range, others use 30 minutes. For this example, we’ll stick with 15 minutes, which offers a good balance of structure and speed.
Step-by-Step ORB Strategy
Choose the Right Stock - Focus on stocks with one or more of the following:
A pre-market gap of at least 2 percent
Above-average volume
A strong news catalyst like earnings or upgrades
You can use a pre-market scanner to filter for high-volume movers with potential.
Mark the Opening Range
Once the market opens, allow the first 15-minute candle to complete. Then draw horizontal lines at the high and low of that candle. This defines your opening range.
Wait for the Break
The key is to wait for price to break above or below the range. A valid entry only occurs after the breakout candle closes outside the range. This reduces false signals and increases conviction.
Watch Volume
Volume is a must. Breakouts without volume tend to fail. Look for a spike in volume as price approaches the breakout level.
Plan Your Trade
Entry: After the breakout candle closes above or below the range
Stop-loss: Just inside the range (on the opposite side of the breakout)
Target: Use a 1.5 or 2 to 1 risk-reward ratio, or exit at a key level like VWAP or the previous day’s high
NVIDIA (NVDA) — March 26, 2025
NVDA 0.00%↑ gapped down after news about Chinese regulation changes. The opening 15-minute range was between $117.38 and $118.82
At 9:50 AM, the stock broke below $117 on strong volume. The trade was triggered at $116. A stop-loss was set at $117.72. Price quickly moved to roughly $114.50 in less an hour, reaching the profit target and offering a high reward in a short window. However, using a trailing stop and closing the position at the end of the trading day could have allowed you to capture a larger move from $116 down to $113.
Why ORB Works
The strategy takes advantage of early volatility driven by institutions. Big funds often make initial moves during the open, especially when responding to fresh data or news.
ORB gives you structure. It removes emotion. And it puts you in sync with the most active part of the market day.
What to Avoid
No volume: If volume is light, skip the trade.
Early entries: Don’t enter before the 15-minute range is complete.
Choppy setups: Avoid stocks with overlapping candles or unclear direction.
Additional Tips
Use VWAP as a filter. If price is above VWAP and breaking out, that’s a strong sign of trend alignment.
Look for confluence with pre-market highs or key daily levels.
Track your results by setup type and refine what works best for your trading style.
The Opening Range Breakout strategy is a time-tested way to trade early momentum with precision. With proper risk management and discipline, this approach can become a core part of any day trader’s playbook.
*Disclaimer: Not Financial Advice. Investors should conduct thorough research and seek professional advice before making any investment decisions.