Opening Range Breakout

The Opening Range Breakout indicator automates the process of identifying and trading the initial volatility during major session opens across various asset classes. It detects the high and low of a user-defined opening period, monitors for breakouts, validates them via retests, and issues structured confirmation signals for intraday traders.

Usage

The Opening Range Breakout (ORB) focuses on the price action within the first few minutes of a trading session. The indicator draws a box around this range and labels key events:

• Breakout: Triggered when the price closes outside the established ORB box.
• Retest: Labeled when the price returns to touch the ORB box after a breakout, confirming the level's significance.
• Buy/Sell Signals: These appear after a successful retest and a subsequent close above or below the established structural levels, filtering out false breakouts.

This tool can be used on stocks, indices, forex, and futures. It is particularly effective during periods of high liquidity, such as the London or New York opens.

Details

The script functions by recording the high and low prices during the "ORB Window" defined in the settings. Once the window closes, it monitors for price interaction with these boundaries. If a breakout occurs, the script tracks the price to see if it returns to the box (retest). Upon a retest, the script "freezes" the local structure (the high/low between the breakout and retest) to create dynamic confirmation levels. A final "BUY" or "SELL" signal is only generated when price breaks these secondary confirmation levels, providing a more robust entry signal than a simple breakout.

Settings

• Select Session: Choose between Asia (Tokyo), London, or New York sessions to determine when the opening range calculation begins.
• ORB Range (min): Sets the duration of the opening range (5, 15, or 30 minutes). The indicator will calculate the high and low within this specific timeframe.
• High Line Color: Customizes the color of the upper boundary of the ORB box.
• Low Line Color: Customizes the color of the lower boundary of the ORB box.
• Box Background Color: Sets the color and transparency of the shaded ORB area.

FAQ

How do I use the different session options?

You can select the session most relevant to your asset (e.g., London for EUR/GBP or New York for US indices) to ensure the range is calculated during the peak volume period.

Why doesn't the box appear on my chart?

The indicator includes a warning label if your current chart timeframe is higher than the selected ORB Range. For example, if you set a 5-minute ORB, you must be on a timeframe lower than 5 minutes to view the box.

How can I access Opening Range Breakout?

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