DR/IDR V1

The DR/IDR V1 indicator automatically plots the Defining Range (DR) and Implied Defining Range (IDR) for regular and overnight trading sessions to identify high-probability intraday highs and lows. This tool is designed primarily for the 5-minute timeframe and supports major Forex pairs, cryptocurrencies, and US Equity indices.

Usage

The Usage section describes how the script identifies key market levels based on specific time intervals. The indicator plots levels for the Regular Defining Range (RDR), Overnight Defining Range (ODR), and After Defining Range (ADR).

Users should monitor price action for "Confirmation," which occurs when a 5-minute candle closes outside of the DR high or low after the initial range hour has concluded.

Confirmation Rules

• Bullish Confirmation: If price closes above the DR high after the range period (e.g., after 10:30 AM for RDR), there is a high probability that the DR low will remain the low of the trading session.
• Bearish Confirmation: If price closes below the DR low after the range period, there is a high probability that the DR high will remain the high of the trading session.
• Early Indication: A price close above or below the IDR (Implied Defining Range) levels provides an early signal of potential session bias before the wider DR levels are breached.

Details

The script is built using rules-based concepts that emphasize the first hour of significant trading sessions. The core logic relies on the following standard New York local times:

• RDR (Regular): 09:30 - 10:30 AM
• ODR (Overnight): 03:00 - 04:00 AM
• ADR (After): 07:30 - 08:30 PM

The tool utilizes the VisibleChart library to ensure calculations are handled efficiently based on the visible bars on the chart. It also includes standard deviation (STD) levels calculated in 0.5 IDR increments, which serve as potential profit targets or extension levels once a range is confirmed.

Settings

Time Settings

• Exchange Offset (hours): Adjusts the time display to match different exchange offsets.
• Session Times: Defines the start and end times for RDR, ADR, and ODR calculation and line extension.

General Settings

• Session Toggles: Enable or disable visibility for Regular, After, and Overnight sessions.
• Line Controls: Options to show/hide DR lines, IDR lines, Middle lines, and Opening lines.
• Box Controls: Toggle the background box and choose whether the box represents the DR or IDR range.
• Standard Deviation (STD) Lines: Options to show dynamic or static STD lines, including labels and historical levels.

Styles

• Colors and Styles: Customize the color, width, and style (Solid, Dashed, Dotted) for all plotted lines and boxes.
• Dynamic Backgrounds: Option to change box colors based on whether the session opened or closed higher.

FAQ

What timeframes are recommended for this indicator?
The indicator is optimized for the 5-minute (M5) timeframe to accurately capture the candle closes required for session confirmation.

What assets does this script work on?
It is designed for US Equity indices (SPY, QQQ, etc.), major Forex pairs, and high-liquidity cryptocurrencies like BTC and ETH.

How do I get access to DR/IDR V1?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.