opening range breakout entry rules
An ORB entry rule converts a move beyond the opening range into a testable event. The rule must say what price has to do, which candle confirms it, and when the opportunity expires.
No entry can be evaluated until the selected opening window is complete. The strategy should record the session, timezone, range high, range low, midpoint, and exact closing timestamp. Extending or redrawing the range after price moves creates lookahead bias.
Premarket, overnight, and regular-session ranges are different definitions. Label the one being tested rather than combining them under a generic ORB result.
A price-touch rule qualifies when the market trades beyond a boundary. It can enter earlier than a close-confirmation model, but a brief intrabar print can also qualify even when the candle finishes back inside the range.
Backtests need the smallest available price sequence to resolve whether the touch occurred before a stop or another boundary event. Candle-high and candle-low values alone may not reveal the order.
A close-confirmation rule waits for a completed candle outside the range. The strategy must specify the candle duration and whether a close exactly on the boundary qualifies. A one-minute close and a fifteen-minute close create different entry times and samples.
An open-and-close rule is stricter: the confirming candle must begin and end beyond the boundary. Treat it as a separate strategy rather than silently substituting it for an ordinary close.
A retest cannot happen before a valid break. After confirmation, define whether the first later touch, an intrabar trade through the boundary, or a completed candle that reclaims the level counts. Also state how a return to the midpoint or opposite boundary invalidates the setup.
The final rule should be short enough for another reviewer to execute without interpretation. Record the boundary, comparator, candle duration, entry price, retest sequence, latest entry time, same-candle ambiguity rule, and treatment of gaps or missing candles.
Historical patterns and target hit rates do not guarantee future results. This guide is general education, not personalized investment advice. Confirm market data with your broker and define risk before entering a trade.
External sources support market-session and risk context. ORB definitions and analytics methodology are documented separately on the ORBLYTICS methodology page.