Opening Range Playbook

A breakout method acts on a defined move beyond a range boundary. A retest method waits for price to revisit that boundary and meet another condition. They differ in entry timing, missed trades, stop distance and execution. Do not credit one method with the other’s best fills.

For a replay exercise, one breakout rule could require a completed bar above the high. One retest rule could then require a return to the boundary and a close back above it before the next entry opportunity. These are illustrative definitions to test, not recommendations with established performance.

A stop at the opposite range edge and a stop below a retest low represent different invalidation ideas. State which one you use. An immediate entry can be earlier but more exposed to a failed break; a retest can never arrive. Both outcomes belong in the record.

Worked example

With a hypothetical 100–104 range, a completed close above 104 is followed by an available entry at 104.50. A retest rule might instead produce entry at 104.25 after the retest. If its valid stop is 103.25 and target 107.25, the gross distances are 1 and 3 points. If price runs straight to 108 without a retest, that method records no trade.

Try it in replay

Write one complete breakout rule and one complete retest rule, including timeframe, earliest entry, invalidation, exit and cancellation. Replay the same date with both without changing their definitions.

Check your reasoning

A valid comparison includes missed moves and failed entries. If the chart never offered the required retest, assigning a retest fill is hindsight, even if the direction was correct.