Opening Range Breakout

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OPENING RANGE BREAKOUT (ORB) INDICATOR

DESCRIPTION
The Opening Range Breakout indicator is a powerful technical analysis tool designed specifically for US equity markets. It identifies and visualizes the opening range established during the first configurable minutes of each trading day (starting at 9:30 AM EST), then provides clear signals when price breaks out of or rejects from these key levels.

This indicator combines multiple timeframe analysis capabilities with precise breakout detection to help traders identify high-probability trading opportunities based on opening range dynamics.

KEY FEATURES

Configurable Opening Range:
• Set opening range duration from 5 minutes to 4 hours
• Automatically adjusts calculations based on your chart timeframe
• Works on any timeframe (1m, 5m, 15m, 1h, etc.)

Multi-Day Range Display:
• Shows up to 50 days of historical opening ranges
• Each day's range properly contained within its trading session
• Range lines extend from market open (9:30 AM) to market close (4:00 PM EST)

Clear Signal System:
• Green arrows (⬆): Bullish breakouts and rejections
• Red arrows (⬇): Bearish breakouts and rejections
• Two signal types: Close breakouts (normal size) and wick rejections (small size)

Visual Range Highlighting:
• Opening range period highlighted with colored box
• Customizable colors for range fill, borders, and midline
• Clean, professional appearance with configurable line styles

SIGNAL TYPES

Bullish Signals (Green ⬆):
1. Close Breakout Above Range (Normal Size): 5-minute candle closes above the opening range high
2. Wick Rejection from Below (Small Size): Price wicks below the opening range low but closes back inside the range

Bearish Signals (Red ⬇):
1. Close Breakout Below Range (Normal Size): 5-minute candle closes below the opening range low
2. Wick Rejection from Above (Small Size): Price wicks above the opening range high but closes back inside the range

CONFIGURATION OPTIONS

Range Settings:
• Opening Range Minutes: Duration of opening range (default: 30 minutes)
• Lookback Days: Number of historical days to display (default: 20 days)

Visual Customization:
• Range Color: Fill color for the opening range area
• Border Color: Color for range high/low lines
• Midline Color: Color for the range midpoint line
• Opening Range Highlight Color: Color for the opening period box
• Line Style: Solid, Dashed, or Dotted lines
• Line Width: 1-4 pixel width options

Display Options:
• Show Midline: Toggle midpoint line display
• Show Range Labels: Toggle price level labels
• Arrow Distance: Adjust arrow positioning (0.1-2.0%)

USAGE GUIDE

Basic Setup:
1. Add the indicator to your chart (works best on 5-minute timeframe)
2. Configure your preferred opening range duration (15m, 30m, or 60m are popular choices)
3. Adjust lookback days based on your analysis needs
4. Customize colors and line styles to match your chart theme

Trading Applications:

Breakout Trading:
• Long Entry: Green arrow (close breakout above range) + confirmation
• Short Entry: Red arrow (close breakout below range) + confirmation
• Stop Loss: Opposite side of the opening range
• Target: 1-2x the range size or key support/resistance levels

Range Rejection Trading:
• Reversal Setups: Small arrows indicate failed breakouts
• Mean Reversion: Trade back toward range midline
• Support/Resistance: Use range levels as key price zones

Multi-Day Analysis:
• Identify recurring support/resistance levels
• Analyze range expansion/contraction patterns
• Compare current day's activity to recent history

BEST PRACTICES

1. Timeframe Selection: 5-minute charts provide optimal signal clarity
2. Range Duration: 30-minute opening range is most commonly used, but adjust based on:
- Market volatility
- Stock characteristics
- Trading style preference
3. Confirmation: Use additional indicators or price action for trade confirmation
4. Risk Management: Always use appropriate position sizing and stop losses

MARKET SESSIONS

The indicator is specifically designed for US equity markets:
• Market Open: 9:30 AM EST
• Market Close: 4:00 PM EST
• Opening Range: Calculated from market open
• Range Lines: Extend throughout the trading day only

PERFORMANCE NOTES

• Optimized for real-time trading with minimal lag
• Automatically manages memory by cleaning old ranges
• Efficiently handles multiple timeframes and range calculations

KNOWN ISSUES & WORKAROUNDS

Historical Buffer Error:
Issue: Occasionally, you may encounter an error: "The requested historical offset (XXX) is beyond the historical buffer's limit (770)"

Workaround:
1. Switch to a different timeframe temporarily
2. Switch back to your original timeframe
3. The indicator will reload and function normally

This is a Pine Script limitation related to historical data access and doesn't affect the indicator's core functionality.

COMPATIBILITY

• Pine Script Version: v6
• Chart Types: All chart types supported
• Timeframes: All timeframes (optimized for 1m-1h)
• Markets: Designed for US equity markets during regular trading hours

TIPS FOR MAXIMUM EFFECTIVENESS

1. Combine with Volume: High volume on breakouts increases reliability
2. Market Context: Consider overall market direction and volatility
3. News Awareness: Be cautious around earnings and major announcements
4. Range Quality: Wider ranges often provide better breakout opportunities
5. Time of Day: Early breakouts (first 1-2 hours) often have higher follow-through

This indicator is provided for educational and informational purposes. Always conduct your own analysis and manage risk appropriately.

5 jam lalu

Nota Keluaran

Updated the history code to take into account the new bars and refresh the drawing from the historic bars. This seems to have mitigated the buffer overflow issue [mentioned in the known issues].

2 jam lalu

Nota Keluaran

Added support for multiple markets. Users can now select the market timezone.