Long-Only Opening Range Breakout (ORB) with Pivot Points

The Long-Only Opening Range Breakout (ORB) with Pivot Points indicator is a specialized intraday trading tool designed to capture bullish momentum following the market open by combining classic range breakout logic with daily pivot resistance levels. It provides traders with a rule-based framework to identify upside breakouts while managing risk through dynamic trailing stops.

Usage

The indicator can be used to automate or visualize a long-only strategy based on early-session volatility. Users define an opening session (e.g., the first 15 minutes of the NYSE open), and the tool identifies the high of that range.

• Entry Signal: A long entry is triggered when the price breaks above the opening range high, provided the opening price was below that high and the first daily pivot (R1) is situated above the range.
• Daily Limits: To prevent overtrading, the script allows users to set a maximum number of trades per day.
• Intraday Focus: The tool automatically closes positions at the end of the trading session to avoid overnight risk.

Details

This script integrates Opening Range Breakout (ORB) theory with standard Daily Pivot Points. ORB focuses on the premise that the initial price action sets the tone for the day. By adding Pivot Points (calculated from the previous day's High, Low, and Close), the script adds structural context to the breakout.

The system includes a sophisticated "Trailing Ladder" mechanism. As the price reaches various pivot levels (R1, R2, etc.) or mid-pivot levels (R0.5, R1.5, etc.), the trailing stop automatically ratchets upward to the next predefined level. This ensures that profits are protected during a strong trend while maintaining a systematic exit strategy.

Settings

Session Settings

• Opening Session: Defines the time window (e.g., "0930-0945") used to establish the opening range high.

Risk Settings

• Initial SL Type: Determines the starting stop loss logic, either "Percentage" (fixed % from entry) or "Previous Low" (the low of the bar prior to the setup).
• Stop Loss %: The percentage value used if the "Percentage" stop loss type is selected.

Trade Limits

• Max Trades per Day: Limits the number of long entries allowed within a single trading day.

Backtest Window

• Backtesting Start/End Time: Controls the historical period during which the strategy will execute trades for performance analysis.

Display

• Show Pivot Levels: Toggles the visibility of R1 through R5 and their respective half-levels.
• Show ORB High: Toggles the visibility of the calculated opening range breakout line.
• Show Stop Line: Toggles the visual red line representing the active stop loss.

FAQ

How do I access the Long-Only Opening Range Breakout (ORB) with Pivot Points?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can this be used for short selling?

No, this specific version is a "Long-Only" strategy designed to capture upside breakouts in bullish market conditions.

What happens if a trade is still open at the end of the day?

The indicator includes an "End of Day" (EOD) exit mechanism that automatically closes any remaining open positions at the close of the daily exchange session to eliminate overnight volatility risk.