📊 Savvy Trader Pro Opening Range Breakout Strategy
🔍 Indicator Overview
The Savvy Trader Pro Clearing Range Indicator identifies trading opportunities based on price action during the opening range (OR) period. This plan specifically focuses on trading SPX options using a 15-minute opening range strategy. The indicator establishes a price range during the first 15 minutes of trading and then looks for breakouts above or below this range to trigger options trades.
- Identifies high-probability breakout opportunities
- Provides clear entry and exit points
- Uses proven market opening dynamics
- Specialized for options trading on SPX
⚙️ Setup Requirements
- Time frame: 15-minute chart for SPX
- Market: SPX options (highly liquid with tight spreads)
- Trading hours: Primarily for regular market hours, focusing on the opening period
- Additional indicators: ADD (Advance/Decline) indicator to confirm market direction
- Moving averages: Major moving averages to identify potential resistance/support levels
🟢 Bullish Breach Strategy Overview
The bullish breach strategy focuses on upside breakouts from the opening range. When price breaks above the 15-minute opening range high, this creates a potential long opportunity using call options.
🔒 Premium Content
Detailed entry and exit criteria, specific option strike selection methodology, and risk management guidelines are available in the full strategy cheat sheet included with your purchase.
🟢 Bullish Breach Example (QQQ Real-World Case):
- Opening Range Identification:
- QQQ formed a 15-minute OR with a range of 7.61 points (as shown in the "RANGE 15M" indicator)
- Market context: SPY +3.3%, QQQ +4%, IWM +2.9% showing strong market conditions
- All EMAs were bearish, but 200 EMA and VWAP showed bullish signal (potential transition point)
- Breach Setup:
- Clearing range established with lower EMAs (red area in chart) acting as resistance
- Price broke through the resistance zone (visible in the pink highlighted rectangle)
- Multiple vertical time markers on chart show the progression of the trading session
- The "BUY" markers in light blue indicate entry points after the breach
🔴 Bearish Breach Strategy Overview
The bearish breach strategy focuses on downside breakouts from the opening range. When price breaks below the 15-minute opening range low, this creates a potential short opportunity using put options.
🔒 Premium Content
Detailed entry and exit criteria, specific option strike selection methodology, and risk management guidelines are available in the full strategy cheat sheet included with your purchase.
⚠️ Risk Management Principles
- Define your maximum risk per trade based on account size
- Scale out of positions at predetermined targets
- Use proper position sizing techniques
- Implement clear stop-loss strategies
- Be cautious on major news days, FOMC announcements, or economic data releases
🌐 Market Context Considerations
Market Internals:
- Use the ADD (Advance/Decline) indicator to confirm the direction of the breakout
- Monitor sector rotation to ensure your trade aligns with the strongest/weakest sectors
- Watch VIX movement for potential volatility expansions that could affect option premiums
Higher Time Frame Alignment:
- Check daily and hourly SPX trends before taking trades
- Prioritize trades in the direction of the higher time frame trend
- Identify key support/resistance levels on daily charts
📅 Trading Preparation
🌅 Pre-Market
- Review major index futures (ES, NQ, RTY)
- Check economic calendar for potential market-moving events
- Note key technical levels on SPX daily chart
- Review VIX levels and overnight movement
⏱️ Market Open (9:30 AM - 9:45 AM)
- Observe opening range formation
- Note OR high and low points precisely
- Assess OR width compared to average
- Prepare for potential breakout opportunities
For more information and professional trading resources, visit www.savvytraderpro.com