Why ORB + VWAP is Your New Best Friend in Trading -No, Seriously

30. Aug.

SPX Hey there, traders! Deno Trading here;👋 Stop feeling like the market is just a one big, mysterious puzzle, and felt you're missing the piece that makes everything click? Well, strap in, because today we're diving into the magic of the Open Range Breakout (ORB) strategy, sprinkled with a little VWAP (Volume Weighted Average Price) magic dust. Spoiler alert: This combo is like peanut butter and jelly for traders—simple, effective, and deliciously profitable.

The Chart (aka "The Battlefield")
Take a look at the chart above—our trusty S&P 500 on a 15-minute time frame. Notice those blue zones? That’s your ORB, the first 15-30 minutes of market action where all the cool kids (a.k.a. the big institutions) are making their moves. The VWAP line? That’s the referee, keeping everyone honest.

Now, let’s break down why ORB works most of the time (we're not wizards, after all, just really good strategists).

ORB: The Reliable Wingman
Imagine ORB as your super-reliable wingman. It’s there at the start of the trading day, setting the boundaries. If the price breaks out of this range, it’s like getting the go-ahead from your wingman to approach—“Yeah, this one's a keeper.”

In our chart, you can see how every time the price breaks above or below the ORB, it either rockets off to the moon 🌕 or dives deep into the abyss. And just like in life, we always want to go with the flow—if the price breaks out, we’re in for the ride.

VWAP: The Truth Serum
Now, let’s talk VWAP. Think of VWAP as the lie detector of the trading world. When the price is above VWAP, it’s like the market is saying, “I’m feeling good, let’s keep pushing higher.” Below VWAP? Well, it’s like the market’s had a rough night out, and it’s probably heading home early.

In this chart, you’ll notice how the price interacts with VWAP after breaking out of the ORB. When the price stays above VWAP after a breakout, it’s a sign that the bulls are in control—cue the confetti! 🎉 But when it dips below, the bears start growling, and you might want to reconsider your long positions.

Jokes Aside But Hey: ORB Always Works (Except When It Doesn’t)
Let’s be real for a second—ORB mostly works. Kind of like how your Wi-Fi mostly works until you really need it. But when ORB does work, it’s like hitting the jackpot. You’re basically riding the wave that everyone else is trying to catch. And if it doesn’t work? Well, blame it on the market gremlins and move on.

Why and Why again: ORB + VWAP = Trading BFFs
Let me wrap up that if you’re not using ORB with VWAP, you’re missing out on a killer combo. These two are like Batman and Robin, or coffee and donuts—they just make sense together. So, the next time you’re staring at your charts, remember: Trust in the ORB, let VWAP be your guide, and don’t forget to laugh at the market’s little quirks and use the news as your catalysts. Because at the end of the day, trading should be fun, profitable, and maybe just a little bit magical.

Now go forth and conquer those charts, my fellow traders! 🚀 Deno Trading in and out!