Opening Range Retest

The Opening Range Retest indicator identifies and visualizes the market's initial trading range while providing automated signals when price returns to these key levels after an initial breakout.

Usage

The tool is designed for opening range trading strategies, where traders look for entries as the market tests the boundaries of the initial volatility.

• Identification: The script draws a visual box around the high and low of the specified opening period.
• Retest Signals: Markers appear when the price returns to the "top-side" or "bottom-side" of the range after a mandatory "resting" period.
• Filtering: Users can define an active time window (e.g., the first hour of the New York session) to restrict alerts and signals to specific high-probability periods.
• Proximity Entries: Using the tolerance setting, traders can receive alerts when price approaches the range boundary without needing a perfect touch.

Details

The indicator calculates the opening range based on a user-defined number of bars or minutes starting from the market open. After the range is established, the script enters a "resting" phase. This prevents false signals from price simply hovering around the boundary. Only after the price has stayed outside the range for the duration of the resting period is a retest considered valid.

For futures traders, the script adapts the start time based on the "Alert active time range" setting to account for extended trading hours.

Settings

• Bars or minutes: Choose the unit of measurement for the opening and resting periods.
• Opening range period: The duration used to establish the high and low boundaries.
• Resting period: The minimum time price must spend outside the range before a retest signal can trigger.
• Retest tolerance %: A percentage of the total range used to create a "buffer" for retest triggers.
• Alert active time range: A specific session window to filter markers and alerts.
• Extend opening range box: Toggle whether the visual range lines continue to the end of the session.
• Visual Colors: Customize the background and border colors of the opening range box.

FAQ

How do I use the resting period effectively?

The resting period ensures the price has clearly broken away from the opening range before a return is labeled a "retest." Increasing this value filters out "noisy" price action immediately following the breakout.

Can I use this on any timeframe?

While the script works on various intraday timeframes, it is optimized for equities and high-volume sessions. It is not intended for Daily, Weekly, or Monthly timeframes.

How do I get access?

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