GER40 Opening Range Breakout (Advanced)

🔥 GER40 (DAX40) Opening Range Breakout Strategy
📌 Overview:
This strategy takes advantage of the high volatility and liquidity during the Frankfurt and London session openings (8:00–10:00 CET). It’s especially suitable for day traders who want to capitalize on early momentum.

✅ Strategy Steps:
1. Mark the Opening Range (08:00–08:15 CET)
Wait for the first 15 minutes after the Frankfurt open (08:00 CET).

Draw horizontal lines at the high and low of this range.

2. Entry Rules:
Buy when price breaks above the opening range high with strong volume.

Sell (short) when price breaks below the opening range low with strong volume.

3. Confirmation (optional but helpful):
Use a momentum indicator like RSI (above 50 for long, below 50 for short) or MACD crossing above/below the signal line.

Look for volume spike at breakout for validation.

4. Stop-Loss:
Set just below the range low (for long) or above the range high (for short).

Or use a fixed pip/point stop-loss like 15–25 points depending on current volatility.

5. Take Profit / Exit:
1:1.5 to 1:2 Risk/Reward Ratio.

Or scale out at fixed points (e.g., +20, +40).

Or trail stop after price moves in favor by +20 points.

📊 Additional Filters to Improve Accuracy:
Check macroeconomic calendar (avoid entering during red news like ECB, German CPI, etc.).

Use VWAP as a dynamic support/resistance for bias direction.

Use 5-min or 15-min charts for better signal clarity.

📈 Example:
Let’s say the DAX opens at 08:00 CET, and by 08:15, the high is 18,000 and the low is 17,950.

If price breaks above 18,000 with volume and RSI > 50, enter long.

Place stop at 17,950 or slightly below.

Take profit at 18,030–18,050 or trail stop.

🧠 Pro Tips:
GER40 is highly volatile, so ensure your risk per trade is small (e.g., 1% or less).

Avoid trading around major news (ECB rate decisions, German GDP, etc.).

Best sessions for GER40: Frankfurt Open (08:00 CET) and London Open (09:00 CET).