Breakout Retest Entry Procedure

Once the initial spike clears the boundary, the primary task shifts to monitoring the retest. The data patterns analyzed at orb trading win rate braunmedicalmedia show that chasing the immediate momentum often leads to getting caught in a reversal. A successful intraday trade requires patience during the first hour of the session to avoid the volatility seen at the cash open. This specific trading method focuses on the stability of the breakout rather than the speed of the initial move.

Defining the Range Boundaries

The process begins by establishing a clear perimeter. A trader selects a specific timeframe such as the five minute range or the fifteen minute range to define the boundaries. Once the opening bell rings, the high and low of this period are marked on the chart. These levels act as the foundation for the entire session. The opening range provides the fixed coordinates needed to identify whether a breakout is a legitimate shift in sentiment or a false move. No trades are taken until these levels are set and the initial volatility has settled.

Identifying the Breakout

An opening range breakout occurs when a candle closes decisively outside the established high or low. This move signifies a potential shift in direction. However, the immediate spike is not the entry point. Entering during the surge often results in a poor risk to reward ratio because the price is already extended from the mean. Instead, the focus remains on the price action following the breach of the level. The goal is to find a period where the price establishes a new floor or ceiling at the previous boundary.

Executing the Retest Entry

The entry occurs on the first pullback to the broken level. After the price moves away from the boundary, it must return to touch or come very close to that specific line. This retest confirms that the previous resistance has flipped to support, or vice versa. The entry is triggered when the price touches the level and shows signs of rejection. Using a 5 minute chart helps in spotting these micro movements with precision. A stop loss is placed just inside the range to protect against a failed breakout that returns to the previous mean.

Managing the Position

Position sizing depends on the distance between the entry and the stop loss. Once the trade is live, the session high or low serves as the primary target for profit taking. If the price fails to hold the level during the retest, the trade is invalidated immediately. Monitoring the price through the first fifteen minutes of the breakout is helpful for determining if the trend has enough strength to continue. The work is complete once the target is hit or the stop loss is triggered.