I wanted to share my opening range ideas for 7-10-09. ES opened with OR of 872-873.75 (white arrow). Draw lines across top/bottom of 1st 1min candle. I wait for two consecutive 1min closes above/below the OR for trigger and to filter out fakes. Entry is 1 tick above/below the OR and came at 9:36 (1st green arrow). I scale out at +2 +3 (on a 3 lot trade). Initial stop is below OR. After 2nd target the stop goes to break-even. Then I wait for Williams%R (setting at 100 length) to close below -20 two times or my profit target for exit on the runner (last lot) On the exit my profit target came first at daily pivot. But had I waited for crappy econ#s to come out @ 9:55am, I would have had to get out at 1st red arrow which was consecutive close below -20 on Williams%R.
2nd OR entry came at 10:01am (2nd green arrow). Same exits at +2 +3 and a runner this time had to be stopped at 2 consecutive closes below 21ema (white line) @ 10:31. Because williams%r never got above -20 on that trade I had to use 21ema as my exit trigger. Profit target on that runner above daily PP did not get reached. Market got rejected at PP again and down it went. All-in-all two profitable trades even though the 2nd runner objective not met.
So to summarize: entries are 1 tick above/below the OR. Stops are 1-2 ticks above/below the OR (or automatic set stop per trader’s discretion). Exits are +2 +3 +? with stop to b/e after second. Exit on runner at profit target or when williams%r above/below -20/-80 or above/below 21ema two consecutive closes.
Please be advised that while I share with pleasure this overview, it is absolutely not a trade advisory or a cast-in-stone set-up. You are to trade at your own risk and to do your own due diligence.
Special thanks to Vlad who was kind to let me share my notes on his superb blog.