Opening Range Reversals with FIBO zones

The Opening Range Reversals with FIBO zones indicator identifies potential reversal levels based on price action during a specific time window, applying Fibonacci extensions to define support and resistance zones. This tool helps traders identify high-probability entry and exit points by projecting volatility-based levels derived from the market's initial balance.

Usage

The indicator establishes a high and low range during a user-defined "Opening Range" period (e.g., the first 30 minutes of the session). Once this period concludes, the script projects Fibonacci levels above the range high and below the range low.

• Support Zones: Typically identified between the 0.618 and 0.786 Fibonacci levels below the opening range low. These areas are used to look for potential long reversals.
• Resistance Zones: Typically identified between the 0.618 and 0.786 Fibonacci levels above the opening range high. These areas are used to look for potential short reversals.
• Trade Management: Common strategies involve entering at the 0.50 or 0.618 levels and placing stop losses at the 0.786 or 1.0 levels.

Details

This implementation is inspired by concepts from colejustice. It calculates the range size (High - Low) during the specified session and multiplies this range by various Fibonacci ratios (0.5, 0.618, 0.786, and 1.0) to create dynamic zones. The indicator also supports an optional "Afternoon Range" to refresh these levels for the latter half of the trading session.

Settings

• Opening Range Time Period (EST): Sets the start and end time for the initial range calculation.
• Timezone: Adjusts the session times to your local or specific market timezone.
• Afternoon Range (EST): Enables a second calculation window for afternoon sessions.
• Fibonacci Levels: Users can toggle visibility, adjust the ratio values, and change the colors/thickness for eight different Fibonacci levels.
• Fibonacci Scale: A multiplier to expand or contract the distance of all projected levels.
• Fibs Line/Fill Visibility: Controls the transparency of the plotted lines and background fills.
• Show Zones Only: Simplifies the visuals by hiding the specific lines and only showing the shaded areas.
• Plot For Today Only: When enabled, the indicator will only display levels for the current trading day.

FAQ

How do I use the Opening Range Reversals with FIBO zones?

Wait for the defined time period to close. Once the range is set, monitor the projected Fibonacci zones for price exhaustion or reversal patterns.

Can I change the session times?

Yes, you can adjust the "Opening Range Time Period" and "Afternoon Range Period" in the settings to match any timeframe or asset class.

How do I access this indicator?

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