OutsiderEdge - Open Range Breakout Profile Engine

vor 5 Tagen

Overview — What is the Open Range Breakout Profile Engine?

The OutsiderEdge Open Range Breakout Profile Engine is a session-based breakout and context indicator designed to identify high-quality open-range breakouts driven by real market acceptance, while filtering early-session noise and false breaks.

Instead of relying on a fixed opening time window, this engine dynamically locks the Open Range based on volatility behavior (ATR compression). Only after volatility peaks and contracts is the range finalized. Breakout signals are then validated using strict candle structure, VWAP context, and one-shot logic.

The objective is not more trades, but fewer, structurally valid trades.

This tool is especially suited for index opens, cash sessions, and instruments where early session structure defines the intraday regime.

🔹CORE CONCEPT

Most traditional open-range systems assume:

• A fixed time defines the range
  
• Every break of that range is actionable
  

This engine rejects both assumptions.

Instead, it asks:

Has volatility expanded and then compressed enough for the market to define its true opening structure?

Only after that condition is met will breakout signals be allowed.

🔹FEATURES

Dynamic Open Range (ATR-Locked)

• The Open Range builds while session volatility expands
  
• ATR is tracked from session start
  
• When ATR drops by a user-defined percentage from its session peak, the Open Range locks
  
• After lock, OR High and OR Low no longer expand
  

This prevents premature ranges and breakouts that occur during unstable volatility.

Strict Breakout Validation (Acceptance-Based)

Breakouts require full candle acceptance beyond the Open Range.

Long breakout

• Open above OR High
  
• Close above OR High
  
• Low above OR High
  

Short breakout

• Open below OR Low
  
• Close below OR Low
  
• High below OR Low
  

Wick breaks and marginal closes are intentionally ignored.

One-Shot Signal Control

• Only one signal per direction is allowed
  
• A new signal can only occur after price fully re-enters the Open Range
  

This avoids signal spam, overtrading, and chasing continuation noise.

Session VWAP + Profile Gradient

Once the Open Range is locked:

• A session-based VWAP is calculated
  
• A horizontal gradient profile is drawn between VWAP and OR High / OR Low
  

This provides a visual distribution map showing price extension, balance, and re-anchoring behavior.

Volume Context

• A volume moving average provides participation context
  
• Helps assess whether breakouts occur with real market activity
  
• Designed as a confirmation layer, not a hard filter
  

Clean, Automation-Ready Alerts

• Long breakout alert
  
• Short breakout alert
  
• Overall breakout alert (either direction)
  

All alerts:

• Fire on candle close
  
• Respect OR lock logic
  
• Respect one-shot rules
  
• Do not repaint
  

🔹USAGE

Trend Days

• Expect one dominant breakout
  
• Use OR High / OR Low as structural invalidation
  
• Use the VWAP gradient for management and scaling
  

Range or Failed Trend Days

• Failed breakouts that re-enter the range provide regime information
  
• Re-entry resets signal state by design
  

Execution Layer

• Use as a primary breakout trigger
  
• Or as confirmation on top of your own bias, structure, or HTF levels
  

🔹NAVIGATING MARKET CONDITIONS

Trending Sessions

• ATR locks earlier
  
• One-shot logic enforces discipline
  
• VWAP gradient assists with trailing and scaling
  

Choppy or News-Driven Opens

• OR may take longer to lock
  
• Early breaks are filtered out
  
• Patience is enforced by design
  

Regime Shifts

• Observe acceptance relative to VWAP after OR lock
  
• Sustained acceptance above or below VWAP often signals an intraday regime change
  

🔹SETTINGS SUMMARY

• Session — Active trading window
  
• ATR Length — Volatility measurement base
  
• ATR Drop % — Determines when the Open Range locks
  
• Volume MA Length — Participation context
  
• Require OR Lock — Enforce structure before signals
  
• Gradient Steps — Profile visual density
  
• VWAP / Profile Toggle — Visual enable or disable
  

🔹BEST PRACTICES

• Treat signals as contextual confirmations, not mechanical entries
  
• Combine with higher-timeframe bias, session levels, and structure
  
• Let structure define risk, not expectation
  

Defaults are intentionally conservative.
Fewer signals usually means higher quality.

Trading involves substantial risk.
This tool is for educational purposes only and is not financial advice.
Past performance does not guarantee future results.
You are solely responsible for your trading decisions and risk management.

vor 4 Tagen

Versionshinweise

Added Mozilla Public License note