Opening Range Gap + Std Dev [starclique]

14 de jul. de 2023

The ICT Opening Range Gap is a concept taught by Inner Circle Trader and is discussed in the videos: 'One Trading Setup For Life' and 2023 ICT Mentorship - Opening Range Gap Repricing Macro

ORGs, or Opening Range Gaps, are gaps that form only on the Regular Trading Hours chart.

The Regular Trading Hours gap occurs between 16:15 PM - 9:29 AM EST (UTC-4)

These times are considered overnight trading, so it is useful to filter the PA (price action) formed there.

The RTH option is only available for futures contracts and continuous futures from CME Group.

To change your chart to RTH, first things first, make sure you’re looking at a futures contract for an asset class, then on the bottom right of your chart, you’ll see ETH (by default) - Click on that, and change it to RTH.

Now your charts are filtering the price action that happened overnight.

To draw out your gap, use the Close of the 4:14 PM candle and the open of the 9:30 AM candle.

How is this concept useful?

Well, It can be used in many ways.

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How To Use The ORG

One of the ways you can use the opening range gap is simply as support and resistance

If we extend out the ORG from the example above, we can see that there is a clean retest of the opening range gap high after breaking structure to the upside and showing acceptance outside of the gap after consolidating within it.

The ORG High (4:14 Candle Close in this case) was used as support.

We then see an expansion to the upside.

Another way to implement the ORG is by using it as a draw on liquidity (magnet for price)

In this example, if we looked to the left, there was a huge ORG to the downside, leaving a massive gap.

The market will want to rebalance that gap during the regular trading hours.

The market rallies higher, rejects, comes down to clear the current days ORG low, then closes.

That is one example of how you can combine liquidity & ICT market structure concepts with Opening Range Gaps to create a story in the charts.

Now let’s discuss standard deviations.

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Standard Deviations

Standard Deviations are essentially projection levels for ranges / POIs (Point of Interests)

By this I mean, if you have a range, and you would like to see where it could potentially expand to, you’d place your fibonacci retracement tool on and high and low of the range, then use extension levels to find specific price points where price might reject from.

Since 0 and 1 are your Range High and Low respectively, your projection levels would be something like 1.5, 2, 2.5, and 3, for the extension from your 1 Fib Level, and -0.5, -1, -1.5, and -2 for your 0 Fib level.

The -1 and 2 level produce a 1:1 projection of your range low and high, meaning, if you expect price to expand as much as it did from the range low to range high, then you can project a -1 and 2 on your Fib, and it would show you what ICT calls “symmetrical price”

Now, how are standard deviations relevant here?

Well, if you’ve been paying attention to ICT’s recent videos, you would’ve caught that he’s recently started using Standard Deviation levels on breakers.

So my brain got going while watching his video on ORGs, and I decided to place the fib on the ORG high and low and see what it’d produce.

The results were very interesting.

Using this same example, if we place our fib on the ORG High and Low, and add some projection levels, we can see that we rejected right at the -2 Standard Deviation Level.

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You can see that I also marked out the EQ (Equilibrium, 50%, 0.5 of Fib) of the ORG. This is because we can use this level as a take profit level if we’re using an old ORG as our draw.

In days like these, where the gap formed was within a consolidation, and it continued to consolidate within the ORG zone that we extended, we can use the EQ in the same way we’d use an EQ for a range.

If it’s showing acceptance above the EQ, we are bullish, and expect the high of the ORG to be tapped, and vice versa.

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Using The Indicator

Here’s where our indicator comes in play.

To avoid having to do all this work of zooming in and marking out the close and open of the respective ORG candles, we created the Opening Range Gap + Standard Deviations Indicator, with the help of our dedicated Star Clique coder, a1tmaniac.

With the ORG + STD DEV indicator, you will be able to view ORG’s and their projections on the ETH (Electronic Trading Hours) chart.


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Features

Range Box

- Change the color of your Opening Range Gap to your liking
- Enable or disable the box from appearing using the checkbox

Range Midline

- Change the color of your Opening Range Gap Equilibrium
- Enable or disable the midline from appearing using the checkbox

Std. Dev

- Add whichever standard deviation levels you’d like.
- By default, the indicator comes with 0.5, 1, 1.5, and 2 standard deviation levels.
- Ensure that you add a comma ( , ) in between each standard deviation level
- Enable or disable the standard deviations from appearing using the opacity of the color (change to 0%)

Labels / Offset

- Adjust the offset of the label for the Standard Deviations
- Enable or disable the Labels from appearing using the checkbox

Time

- Adjust the time used for the indicators range
- If you’d like to use this for a Session or ICT Killzone instead, adjust the time
- Adjust the timezone used for the time referenced
- Options are UTC, US (UTC-4, New York Local Time) or UK (UTC+1, London Time)
- By default, the indicator is set to US