Opening Range

Opening Range Indicator for NT8

The Opening Range is the range obtained from the highest and lowest price of a security during the first minutes of daily trading activity. For example, an opening range can be calculated for the first 5, 15 or 30 minutes. The Library version can be compared to the Premium version here.

Indicator Description

A number of trading systems rely on the Opening Range indicator for clues on directional bias. For example, index futures traders used to mark the high and low points during the first 30 minutes. Following this time window, one would take long positions above the opening range. Conversely, short positions would be taken if the market moved below that range. Such trades were then characterized as “opening range breakouts”.

Certain methods were later been developed to distinguish between “real” breakout levels and reversal points. For example, Mark Fischer worked with an offset of ticks above/below the breakout level in order to confirm the breakouts. Alternatively, breakouts can be verified by observing whether the market stay above/below the range levels for a certain time. For example, a breakout could be deemed valid if price stays above/below the range high/low for 20+ minutes.

The opening range high/low and pre-session high/low levels may subsequently work as important areas of support/resistance during the day.

RTH Session Template

The opening range indicator displays the opening range / pre-session range and the current open of the RTH session. In order to retrieve the correct opening price, we strongly recommend to use a trading hours template that adds a session break for the regular open.

Such a trading hours template should always be used with tick, volume, range or renko bars. For minute bars the indicator may also be used with the trading hours template <instrument settings>, if the first price bar of the opening range aligns to the opening time.

For example, the indicator will show the correct opening prices for the E-mini S&P futures contract on 1 min, 2 min, 3 min, 5 min, 10 min, 15 min and 30 min charts.

The Opening Range indicator is available for NinjaTrader 8.