codrut_8 Posted August 20, 2010 Report Share Posted August 20, 2010 (edited) This information is available in Toby Crabel's, "Day Trading With Short Term Price Patterns and Opening Range Breakout". This is a mathematical formula used to play the opening range breakout. This was a famous opening break method amongst the professionals for many years. A lot of traders still use this method. First Step: you get the (High - Open) and the (Open - Low) For example: Let's take the S&P 500 emini contract High: 1294 Low: 1281.5 Open: 1290.50 (High - Open) = 3.5 (Open - Low) = 9 2nd Step: You take the minimum of the two numbers. In this example the minimum would be 3.5. 3rd Step: Add the minimum for the last 10 trading days and divide it by 10. So you would add 3.5 to the minimum of the previous 9 days. In total you will have 10 numbers. Divide that by 10 to get the average. 4th Step: For example, let's say you get a 10 day average of 2.5. You simply play the breakout of the opening range. If prices open up at 1293, you would buy a breakout above 1295.5 and short a breakdown below 1290.50. It works well on stocks, ETFs, indexes, futures, forex. Beware, this is not a complete system, you’ve got to have an exit strategy. MT4 indicator does the calculation for you: hxxp://[email protected]/account/dir/sUUpQZT6/sharing.html?rnd=99 Edited August 20, 2010 by codrut_8 Oil-George and marinko 2 Quote Link to comment Share on other sites More sharing options...
zizi101 Posted August 20, 2010 Report Share Posted August 20, 2010 THX! - the correct name is Toby Crabel Quote Link to comment Share on other sites More sharing options...
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