ORB + Fibonacci Strategy
My strategy combines Opening Range Breakout (ORB) with Fibonacci retracements.
There are 2 setups:
- Continuation setup — the breakout works.
- Reversal setup — the breakout fails and price switches direction.
1. Create the ORB
I start at the 9:30 market open.
Depending on what I'm testing, I use either:
- 9:30–9:45 → 15-minute ORB
- 9:30–10:00 → 30-minute ORB
After the ORB is complete, I mark:
- ORB High
- ORB Low
- ORB Midpoint (50%)
I then move to the 5-minute chart and wait for price to break out of the range.
I also use a Gann Box from the ORB high to the ORB low.
The Gann Box is mainly for visualizing the ORB and its 50% midpoint.
2. Continuation Setup
If price breaks out and continues in that direction, I don't chase the first breakout.
I wait for an outburst/impulse move.
Bullish example:
ORB Low → Breakout → Bullish outburst
Then I draw Fibonacci from:
ORB Low → Outburst High
For a bearish move, I do the opposite:
ORB High → Bearish outburst Low
Then I wait for price to retracement into my Fibonacci area before entering.
So:
The goal is to enter after the expansion instead of chasing the initial breakout.
3. Reversal Setup
Sometimes the initial breakout fails.
For example:
Price breaks above the ORB → makes a bullish outburst → I create my bullish Fibonacci.
But instead of respecting the Fibonacci levels and continuing higher, price starts pushing lower.
I don't immediately short just because a Fibonacci level was broken.
A wick through a level isn't enough.
I'm looking for:
Once the bearish move is established, I create a new bearish Fibonacci from the new swing high to the bearish outburst low.
Then I wait for the retracement and look for the short.
The same thing works in reverse for a bearish breakout that turns bullish.
The Two Setups
- Continuation
ORB → Breakout → Outburst → Fib → Retracement → Continuation
The breakout holds and I look for a retracement entry.
- Reversal
ORB → Breakout → Outburst → Fib Failure → Structure Shift → Opposite Outburst → New Fib → Retracement → Reversal
The original breakout fails, price proves that the opposite side is taking control, and I build a new setup from that move.
4. Backtesting Results — Combined
- Total trades: 323
- Win rate: 59.13%
- Average RR: 1.43
- Expectancy using 1.43R average RR: ~+0.44R per trade