Opening Range Breakout

The Opening Range Breakout indicator identifies and visualizes the initial high and low price levels established during a specific opening session to help traders spot potential trend continuations and momentum shifts.

Usage

The tool is primarily used by intraday traders to identify the "Opening Range" (OR), which is defined by a user-specified time window (e.g., the first 15 minutes of the market session). Once this range is established, the script monitors for breakouts during a subsequent trading window.

To improve signal quality and filter out noise, the indicator incorporates an Exponential Moving Average (EMA). A valid breakout occurs when the price moves beyond the range boundaries while being confirmed by the EMA trend.

• Bullish Breakout: Occurs when price is above the OR High, the EMA is trending upward, price is above the EMA, and the EMA is also above the OR High.
• Bearish Breakout: Occurs when price is below the OR Low, the EMA is trending downward, price is below the EMA, and the EMA is also below the OR Low.

Details

The script functions by tracking the highest and lowest prices within the "Opening Range Start/Stop Time" inputs. Once that time window expires, the levels are locked until the next session. The breakout logic is only active during the "Opening Range Breakout Start/Stop Time" window, preventing signals during late-day chop or aftermarket hours. The use of an EMA filter ensures that breakouts are supported by short-term momentum rather than being isolated price spikes.

Settings

• Opening Range Start/Stop Time: Defines the time period used to calculate the session high and low.
• Opening Range Breakout Start/Stop Time: Defines the active window where breakout signals can be triggered.
• EMA Length: Determines the lookback period for the trend-confirming EMA.
• Source for EMA: The price data point (e.g., Close, HL2) used to calculate the EMA.
• Send a Single Alert on OR Breakout: If enabled, the script will only trigger one alert per session for each direction.

FAQ

How do 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.

Can I change the opening range duration?

Yes, you can modify the "Opening Range Start/Stop Time" in the settings to accommodate different strategies, such as a 5-minute or 30-minute opening range.

Does this work on all timeframes?

While designed for intraday use, it is most effective on lower timeframes (1m, 5m, 15m) where the opening range can be clearly defined relative to the trading day.