Hubert Senters here.
Here’s a simple way to trade open range breakouts. First, you need a gap chart and an index future and futures don’t really have gaps except when they’re closed but I make an artificial gap by going @YM.D so that I only see the stock market open and not just all the futures open because that’s when a lot of volume comes in.
Then I use a two minute chart very detailed to the two minute chart. It really don’t matter what. You can use a one minute. You could use a 20 tick. I don’t really care. Just pick a time frame that you like. So what I’m going to do here is I’m going to zoom in on a two minute chart. I’m going to mark. It gets gapping up obviously right now and I’m marking the high in a two minute and then I’m marking a low on a two minute.
And then all I do is if the market tells me it’s breaking the low I would want to short that at $25,480. Now, one way to check yourself to make sure you’re on the right side of the market on your guessing when figuring out the direction is I use a tick indicator just RPM gauge the market, gapped up above a thousand. That’s a high reading. It can’t hold that all day long. Okay.
And now you can see it’s continuing to drop. And it’s headed to the zero line so there are some extremes and there are some more advanced tactics you can do. This is just a simplified version of it. You’re gapping up, the ticks are up, the ticks are falling and the price is falling. You want to compare and contrast these things in real time. There are more advanced strategies.
This is simple though. It’s effective and it will work until it stops working. And then you just stop trading and then you come back the next day so you may get two or three trades off this. You might get five or six. You might get one trade off of this. And then it will stop working and then you just wait for the next open.
Mark Helweg’s got a really kick an algorithm that will do a lot of this stuff for you so you don’t have to do any of it manually. It’s called The Ube Pro. He’s going to be doing a webinar Wednesday, October 17th at 8PM EST. I will HYPERLINK you to this page.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
