London Open Range Breakout

The London Open Range Breakout indicator identifies high-probability intraday trading opportunities by combining opening range breakouts with multi-timeframe trend analysis and key institutional levels.

Usage

The script is designed primarily for day trading on lower timeframes like the 5-minute chart. To use this tool effectively, traders look for "alignment" across three primary components:

• Opening Range: The tool plots the high and low of the London session's first hour (adjustable). A breakout above or below this range suggests the trend for the remainder of the session.
• Trend Confirmation: The multi-timeframe EMAs should be in the correct order (e.g., shortest EMA above the longer EMAs for a long trade). The background color changes intensity based on how many EMA conditions are met.
• Key Levels: Traders should avoid entering long or short positions directly into major resistance or support levels, such as the Previous Day's High/Low or Weekly Open, which are plotted automatically.

Details

This tool implements a multi-timeframe EMA system that uses timeframe multipliers rather than hardcoded intervals, allowing for smoother moving averages that scale with your current chart resolution. By default, it displays the EMA20 across five distinct horizons (Current, M15, H1, H4, and D1).

The indicator also fetches historical data for institutional reference points, including:

• Previous Day's High and Low.
• Previous Week's High and Low.
• Previous Day and Week Closes.

Settings

Timeframe EMAs

• Show Higher Timeframe (1-5): Toggles the visibility of specific EMA horizons.
• EMA Length: Sets the lookback period for the moving average (default is 20).
• Timeframe Multiplier: Determines the relative timeframe for the EMA calculation based on the current chart.

Session & Range

• London Session: Defines the trading session hours.
• Show Historical ORB: Toggles the display of past opening ranges.
• Opening Range Length: Sets the duration used to calculate the breakout range (e.g., 60 minutes).

Levels

• Show Previous Day's High & Low: Toggles daily horizontal reference levels.
• Show Previous Week High & Low: Toggles weekly horizontal reference levels.

FAQ

How do I access the London Open Range Breakout?

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

Can I change the breakout session to New York?

Yes, the "London Session" input can be modified to any time range to accommodate different trading sessions or regional breakouts.

What do the different background colors signify?

The background color highlights trend strength. Green indicates bullish alignment across multiple EMAs and price action, while red indicates bearish alignment. The presence of color suggests that specific trend conditions are being met.