This new Thinkscript study automatically plots the Opening Range levels, sometimes called the Initial Balance, on your chart each morning in ThinkOrSwim. The Initial Balance levels are usually considered to be the first hour’s high and low, and by default that’s what this indicator comes set with. However, you can optionally change the Opening Range start and end times and shorten the Opening Range to 30 minutes, 15 minutes, 10 minutes, 5 minutes, etc.
This indicator will also optionally plot the midpoint between the Opening Range high and the Opening Range low. You can set it to show only today’s levels, or levels for every day you have loaded on your chart. This Thinkscript will optionally allow you to plot a cloud between the high and low to highlight the range on the chart more clearly, and all the plot colors including the cloud can be customized to whatever colors you want them to be.
This indicator is useful for anyone who is interested in trading opening range breakouts (whether 5 minute, 15 minute, 30 minute, 60 minute, etc.). It’s also valuable for anyone who is interested in trading with a better awareness of the market profile’s initial balance highs and lows, which can represent important levels for the trading day.