Opening Range Breakout with 2 Profit Targets.

The Opening Range Breakout with 2 Profit Targets indicator identifies the high and low prices of a specific initial trading period to establish breakout levels and dynamic profit targets. This tool is designed to help traders capitalize on early-session volatility by providing clear entry boundaries and automated exit points based on multiples of the opening range.

Usage

The Usage section describes how the script can be used to identify trend beginnings and potential reversals. Traders typically monitor the opening range (plotted as yellow or neutral lines) and wait for price action to break above or below these levels.

• Breakout Identification: When the price moves above the opening range high, the line turns green, signaling a bullish breakout. Conversely, if the price drops below the opening range low, the line turns red, signaling a bearish breakout.
• Target Execution: The indicator automatically calculates two profit targets based on the width of the opening range. A label "1" appears when the first target is hit, and a "2" appears when the second target is reached.
• Session Flexibility: The script includes presets for major markets including Forex U.S. Bank Open, Gold U.S. Open, Oil U.S. Open, U.S. Equities (Cash Session), NY Forex Open, and the Europe Open. Traders can also use a 24-hour cycle or define custom time inputs.

Details

The script operates by capturing the high and low prices within a user-defined timeframe (e.g., the first 60 minutes of a session). It utilizes request.security to ensure the range calculation remains consistent across different chart timeframes.

The profit targets are calculated as a percentage of the total range size:

• Target 1: Calculated by taking the opening range high/low and adding/subtracting a multiple of the range (default is 0.5x).
• Target 2: Calculated using a larger multiple (default is 1.0x).

Note: Due to how calculations are processed during the formation of the opening range, lines may adjust dynamically on each bar until the specified period is complete.

Settings

Session and Timeframe

• Session to use: Selects from pre-defined market sessions (0–6) to determine when the opening range begins and ends.
• Length Of Opening Range: Defines the duration used to set the high and low boundaries (e.g., 15, 30, or 60 minutes).
• Custom Session Inputs: Allows manual adjustment of start and end times for various markets to account for daylight savings or specific local exchange hours.

Targets and Visuals

• Profit Target 1: Sets the multiplier for the first target level (e.g., 5 = 0.5x the range).
• Profit Target 2: Sets the multiplier for the second target level (e.g., 10 = 1.0x the range).
• Plot 1 and 2: Toggles the visibility of the "1" and "2" labels on the chart when targets are achieved.

FAQ

How do I adjust the indicator for my local time zone? The default settings are based on New York Time (EST/EDT). If your chart is set to a different time zone, you must manually adjust the session start and end times in the Inputs tab to align with your local settings.

Why do the lines move during the first few bars of the session? The opening range is being calculated in real-time. The lines will stabilize and remain fixed once the "Length Of Opening Range" (e.g., 60 minutes) has fully elapsed.

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