Crabel's ORB and Stretch

I'm looking into this at the moment to trade 'on the side' from my usual method and have a few questions.

Is the mypivots 'stretch' figure calculated from the combination of both night and pit session?

If so I assume it should be added/subtracted from the opening value after the day session, is this correct?

I would appreciate any comments on stops and targets.

The stretch is the difference between (all RTH) the open or either the high or the low, which ever is smaller, then you average over x periods. You can make it as simple or as complex from there as you want. But right away what becomes problematic re targets is that in a simple moving average past prices perhaps not relevant to recent action carries equal measure. Crabel hinted to not only keeping a exponential moving average of the stretch, but using in trades the difference of the simple moving average and the exponential average in an exponential moving average. "the absolute difference."

I also factor historical volatility, but only because I love math. lol

Most of Crabel's report dealt with continuation trading off of the opening move save after a bull or bear hook, in which case is the opposite; whatever the case ORB trades are taken only the day after an inside day, when a price pattern is evidenced the day before, and if in a bull RTH closed above the open and in a bear closed below the low.

Bear and bull hooks are the only overnight session considerations.

With concern to targets, whatever you're comfortable with, but they're big moves. Today was an ORB day.

You really need the book if you're serious about trading it. It's steep but worth it.

i've found that, on occasion, the Stretch point is also a good place to fade the opening move

Thanks r_e

I have today's triggers at 905.75 and 895.5; is this right?

Yes. But 905.25 is a full movement projection from 89.

quote:

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Originally posted by chex13

Thanks r_e

I have today's triggers at 905.75 and 895.5; is this right?

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more or less, it's not an exact science, but yes I was looking for turns at 905 and 896....worked out pretty well again
although the short from 905 didn't quite get triggered on the ES, it did on the YM (stretch of 44 just just slightly overtouched) so I took that as my signal

quote:

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Originally posted by SPQR

Yes. But

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can you clarify what that means in the first place and then specifically how it impacts the plan to Fade the Stretch please ?

Today was the narrowest range in 55 days. The ORB tomorrow should prove interesting !