Opening Range Breakout Strategy with ATR

// This indicator was generated by AI and has not passed any formal QA process at TrendSpider. Use for informational purposes only.

describe_indicator('Opening Range Breakout Strategy with ATR', 'price');

// Input for Opening Range Time Selection
const startHour = input.number('Start Hour', 9, { min: 0, max: 23 });
const startMinute = input.number('Start Minute', 30, { min: 0, max: 59 });
const endHour = input.number('End Hour', 10, { min: 0, max: 23 });
const endMinute = input.number('End Minute', 30, { min: 0, max: 59 });

// Inputs for ATR settings
const atrLength = input.number('ATR Length', 14, { min: 1, max: 50 });
const atrMultiplier = input.number('ATR Multiplier', 2, { min: 0.5, max: 10, step: 0.1 });

// Time limits for entering trades
const tradeStartHour = 10;
const tradeStartMinute = 30;
const tradeEndHour = 15;
const tradeEndMinute = 30;

// Calculate ATR for Stop Loss/Take Profit
const atrValues = atr(close, high, low, atrLength);

// Variables to keep track of positions
let inTrade = false;
let entryPrice = 0;
let stopLossLevel = 0;
let takeProfitLevel = 0;

// Series for buy/sell labels and painting the stop loss/take profit lines
const buyLabels = series_of(null);
const sellLabels = series_of(null);
let stopLossLine = series_of(null);
let takeProfitLine = series_of(null);

// Function to calculate opening range high and low
function getOpeningRangeHighLow() {
    const openingRangeHighs = series_of(null);
    const openingRangeLows = series_of(null);
    let currentDay = null;
    let openingRangeHigh = -Infinity;
    let openingRangeLow = Infinity;

    for (let i = 0; i < time.length; i++) {
        const date = time_of(time[i]);
        const day = date.dayOfYear;

        if (day !== currentDay) {
            currentDay = day;
            openingRangeHigh = -Infinity;
            openingRangeLow = Infinity;
        }

        // Check if the current time is within the user-defined range
        if (
            (date.hours > startHour || (date.hours === startHour && date.minutes >= startMinute)) &&
            (date.hours < endHour || (date.hours === endHour && date.minutes <= endMinute))
        ) {
            if (high[i] > openingRangeHigh) {
                openingRangeHigh = high[i];
            }
            if (low[i] < openingRangeLow) {
                openingRangeLow = low[i];
            }
        }

        openingRangeHighs[i] = openingRangeHigh;
        openingRangeLows[i] = openingRangeLow;
    }
    return { openingRangeHighs, openingRangeLows };
}

// Get the opening range high and low series
const { openingRangeHighs, openingRangeLows } = getOpeningRangeHighLow();

// Paint the opening range high and low lines
paint(openingRangeHighs, { style: 'line', color: 'red', thickness: 2, name: 'Opening Range High' });
paint(openingRangeLows, { style: 'line', color: 'blue', thickness: 2, name: 'Opening Range Low' });

// Strategy loop
for (let i = atrLength; i < close.length; i++) {
    const date = time_of(time[i]);

    // Check if it's within the allowed trading time window (10:30 to 15:30)
    const isInTradingWindow =
        (date.hours > tradeStartHour || (date.hours === tradeStartHour && date.minutes >= tradeStartMinute)) &&
        (date.hours < tradeEndHour || (date.hours === tradeEndHour && date.minutes <= tradeEndMinute));

    // Buy signal: when price crosses above the opening range high during the trade window
    if (!inTrade && isInTradingWindow && close[i - 1] < openingRangeHighs[i - 1] && close[i] > openingRangeHighs[i]) {
        inTrade = true;
        entryPrice = open[i + 1];  // Set the entry price at the open of the next candle

        // Calculate stop loss and take profit based on ATR
        const atrValue = atrValues[i];
        stopLossLevel = entryPrice - (atrMultiplier * atrValue);
        takeProfitLevel = entryPrice + (atrMultiplier * atrValue);

        // Paint the buy label and store the entry price
        buyLabels[i + 1] = 'Buy';

        // Paint stop loss and take profit lines
        stopLossLine[i + 1] = stopLossLevel;
        takeProfitLine[i + 1] = takeProfitLevel;
    }

    // If in trade, check if price hits stop loss or take profit
    if (inTrade) {
        // Check for stop loss hit
        if (close[i] <= stopLossLevel) {
            inTrade = false;  // Exit trade
            sellLabels[i] = 'Sell (SL)';  // Paint sell label for stop loss
        }

        // Check for take profit hit
        if (close[i] >= takeProfitLevel) {
            inTrade = false;  // Exit trade
            sellLabels[i] = 'Sell (TP)';  // Paint sell label for take profit
        }

        // Continue painting the stop loss and take profit lines
        stopLossLine[i] = stopLossLevel;
        takeProfitLine[i] = takeProfitLevel;
    }
}

// Paint the Stop Loss and Take Profit lines
paint(stopLossLine, { name: 'Stop Loss', color: 'red', style: 'line', thickness: 1 });
paint(takeProfitLine, { name: 'Take Profit', color: 'green', style: 'line', thickness: 1 });

// Paint the Buy and Sell labels
paint(buyLabels, { style: 'labels_below', backgroundColor: 'green', color: 'green' });
paint(sellLabels, { style: 'labels_above', backgroundColor: 'red', color: 'red' });

// Register signals for use in visual scripting
register_signal(buyLabels, 'Buy');
register_signal(sellLabels, 'Sell');