Range Box with Breakouts and Targets

This indicator measures and displays the price range created from the first period within a new trading session, along with price breakouts from that range and targets associated with the range width.

The Opening Range can be a powerful tool for making a clear distinction between ranging and trending trading days. Using a rigid structure for drawing a range, provides a consistent basis to make judgments and comparisons that will better assist the user in determining a hypothesis for the day's price action.

NOTE: During a suspected "Range Day", the Opening Range can be used for reversion strategies, typically targeting the opposite extreme of the range or the mean of the range. However, more commonly the Opening Range is used for breakouts on suspected "Trend Days", targeting further upward or downward market movement.

The common Opening Range Breakout Strategy  outlines a structure to enter and exit positions based on rigid points determined by the Opening Range. This methodology can be adjusted based on markets or trading styles.

Determine Opening Range High & Low: These are the high and low price within a chosen period of time after the market opens. This can be customized to the user's trading style and preference. 

Watch for a Breakout: A Breakout occurs when price crosses the Range High  or Range Low , an increase in volume is typically desired when witnessing these breakouts to confirm a stronger movement.

Manage Risk: Based on user preference and the appropriately determined amount of risk, multiple ways can be determined to manage risk by using Opening Range. For Example: A stop-loss could be set at the opposite side of the range, while a profit target could optionally be set at the first price target generated by the script. These are just examples of the possible options with this tool.

- Range box period:  Select the time period to start and end the opening range.

- Broker's Server Time zone: Adjust time zone by broker

- Show Breakout: Show breakouts arrow

- Show Targets: Show all line targets price

- Source Target: Select between Close price or High/Low price as the crossing target

- Target (x)% of Range Box: Set the % width of Range box used as an increment for the Targets to display.

Note

- Only work with period less than D1 because distance between range box time