Premium guide · The open
GapAlgo Confirmed Breakout
An opening range breakout that has to pass two checks before it gets a trade plan.
What it does
The opening range is boxed from 9:30 New York time for the length you choose. The first break of the day, up or down, is marked, then scored out of two: did price also clear the overnight range, and did volume expand on the break?
Only a break that passes both checks is Strong. It gets the CONFIRMED label, three take profit lines, a stop and a strong alert. Weaker breaks are still marked with their score, so the context is never hidden.
How it works
| Part | What it does |
|---|---|
| Overnight range check | Did the breakout bar also close beyond the overnight range, from 4:00pm the day before to 9:30 this morning? Breaking both ranges at once is a stronger signal than breaking a 15 minute box. |
| Volume check | Is the breakout bar's volume at least 1.5x its 20 bar average? Breaks on light volume fail more often. |
| Trade plan on Strong only | TP1, TP2 and TP3 are measured from the edge of the opening range that broke. The stop sits at the opposite edge of the range. |
Key settings
Names as they appear in the indicator's settings, with the default value.
Opening Range Start Hour / Minute
Default: 9 / 30
When the opening range starts, New York time.
Opening Range Length (minutes)
Default: 15
How long the range is measured for, so 15 gives 9:30 to 9:45.
Postmarket Start / Premarket End
Default: 16:00 / 9:30
The window used for the overnight range.
Volume Average Lookback / Volume Spike Multiplier
Default: 20 / 1.5
What counts as expanded volume on the breakout bar.
Confirmation Method
Default: Close Beyond
Close Beyond needs a candle to close outside the range. Wick Through counts a wick past it. Either way the break is only evaluated once the bar has closed.
TP1 / TP2 / TP3 Distance ($ on SPY)
Default: 0.75 / 1.00 / 1.50
Target distances from the broken edge, in dollars on SPY.
Scale TP Distance on Other Symbols (%)
Default: On
On any other symbol, each distance becomes the same percentage move as on SPY.
Show Stop Loss Line
Default: On
The stop at the opposite end of the opening range, Strong breaks only.
Days of History to Show
Default: 10
How many past days' ranges stay on the chart.
How to read it
- Grey box = the opening range. Purple box = the overnight range.
- CONFIRMED ▲ / CONFIRMED ▼ = a Strong break (2/2) with dashed yellow TP1, TP2 and TP3 lines and a red SL line.
- Breakout ▲ (1/2) or (0/2) in grey = a break without full backing. It is marked so you can see it, but no trade plan is drawn.
- The dashboard shows the status, both ranges, volume against its average and the live score.
Alerts
- Confirmed Breakout Up / Down (Strong) for 2/2 breaks.
- Partial Breakout Up / Down (Moderate) for 1/2 breaks.
- TP1, TP2, TP3 and stop loss hit.
To set one up, click Alert on the TradingView toolbar, choose GapAlgo Confirmed Breakout as the condition, then pick the alert you want.
Tip
A break that scores 0 or 1 is the chart telling you the level went without structure or participation behind it. That is the break most likely to fall back inside the range.
For education and information only. No outcome is promised, and nothing here is financial advice.