OPEN-SOURCE SCRIPT
Futures: NQ Overnight Range (% of Daily ATR)
## Futures: NQ Overnight Range (% of Daily ATR) — ORB Trading Guide
### What this indicator does
This indicator is built for **NQ / MNQ futures** and is meant to support **Opening Range Breakout (ORB)** trading.
Because futures trade nearly 24 hours, a lot of important movement happens during **Asia + London**. This script measures the **Overnight Range** from **18:00 to 09:30** (exchange time), then compares it to the market’s **typical full-day movement** using **Daily ATR(14)**.
The goal is simple:
> **Before the open, decide whether the day is more likely to behave like a “chop day” or an “expansion day,” and then choose the ORB style that matches.**
---
## Key terms (plain English)
### Daily ATR(14)
ATR is the average daily movement over the last 14 days.
Think of it as:
> “On a normal day, NQ tends to move about *X* points.”
---
### Overnight Range (18:00–09:30)
This is the distance between the **overnight high** and **overnight low** from 18:00 to 09:30.
Think of it as:
> “How much NQ already moved before the cash open.”
---
### Overnight Range % of ATR
This is the “volatility meter” for the day:
[
\text{Overnight Range % of ATR} = \frac{\text{Overnight Range}}{\text{Daily ATR}} \times 100
]
It answers:
> “How much of a normal day’s movement already happened overnight?”
---
## How to interpret the Regime label
This script classifies the day into one of three “regimes”:
### **CHOP-LEANING** (Overnight Range < 25% of Daily ATR)
Overnight was quiet. The open is more likely to be:
* range-bound
* full of fakeouts
* slower follow-through
### **NEUTRAL** (25%–50%)
Normal overnight activity. Either outcome is possible:
* trend or chop
* you must let the open confirm it
### **EXPANSION-LEANING** (Overnight Range > 50%)
Overnight was very active. The open is more likely to:
* move faster
* expand range quickly
* have stronger directional pushes (or sharp swings)
**Important:** Expansion does not guarantee a clean trend. It means **movement is more likely**.
---
# How I use this indicator with ORB (my rules)
This indicator is not a buy/sell signal by itself.
I use it to decide **which ORB style to trade**.
## Step 1 — Check the “Regime” before the open
* If the indicator reads **EXPANSION-LEANING**, I treat it like a momentum environment.
* If the indicator reads **CHOP-LEANING**, I treat it like a confirmation environment.
* If it reads **NEUTRAL**, I stay selective and let price action confirm.
---
## Step 2 — ORB Execution Rules
### ✅ If **EXPANSION-LEANING** (momentum day)
**Goal:** Catch the move early and avoid missing the breakout.
**My ORB plan:**
* Build my opening range using the **5-minute ORB**
* Enter on a **break of the ORB level**
* Use the **1-minute timeframe** for the actual entry trigger
**How I confirm the break:**
* I want a clean break through the ORB level (not just a wick touch)
* If price snaps immediately back inside the ORB, I avoid chasing
This approach fits expansion days because the market can move quickly and waiting for perfect retests can cause you to miss the push.
---
### ✅ If **CHOP-LEANING** (confirmation day)
**Goal:** Avoid fakeouts and only enter when the break proves itself.
**My ORB plan:**
* Build my opening range using a **15-minute ORB**
* I do **not** enter on the first break
* I wait for a **break and retest**
* Then I use the **5-minute timeframe** to confirm the retest holds before entry
This fits chop days because breaks fail more often, so I require confirmation before committing.
---
### ✅ If **NEUTRAL**
**Goal:** Reduce low-quality trades.
**My ORB plan:**
* Treat it as “wait and see”
* Only take the break if price shows strong conviction (hold outside ORB)
* If price is whipping in and out of the range, I skip the trade
---
## Best practices
* This indicator works best on **1m / 5m / 15m charts** so the overnight high/low is captured accurately.
* Times are based on the symbol’s **exchange time**.
* Use proper risk management—futures can move fast, especially on expansion days.
---
## Disclaimer
This script is for educational purposes only and is not financial advice. Futures trading carries significant risk. Always use risk management and test any approach before trading live.
---
### What this indicator does
This indicator is built for **NQ / MNQ futures** and is meant to support **Opening Range Breakout (ORB)** trading.
Because futures trade nearly 24 hours, a lot of important movement happens during **Asia + London**. This script measures the **Overnight Range** from **18:00 to 09:30** (exchange time), then compares it to the market’s **typical full-day movement** using **Daily ATR(14)**.
The goal is simple:
> **Before the open, decide whether the day is more likely to behave like a “chop day” or an “expansion day,” and then choose the ORB style that matches.**
---
## Key terms (plain English)
### Daily ATR(14)
ATR is the average daily movement over the last 14 days.
Think of it as:
> “On a normal day, NQ tends to move about *X* points.”
---
### Overnight Range (18:00–09:30)
This is the distance between the **overnight high** and **overnight low** from 18:00 to 09:30.
Think of it as:
> “How much NQ already moved before the cash open.”
---
### Overnight Range % of ATR
This is the “volatility meter” for the day:
[
\text{Overnight Range % of ATR} = \frac{\text{Overnight Range}}{\text{Daily ATR}} \times 100
]
It answers:
> “How much of a normal day’s movement already happened overnight?”
---
## How to interpret the Regime label
This script classifies the day into one of three “regimes”:
### **CHOP-LEANING** (Overnight Range < 25% of Daily ATR)
Overnight was quiet. The open is more likely to be:
* range-bound
* full of fakeouts
* slower follow-through
### **NEUTRAL** (25%–50%)
Normal overnight activity. Either outcome is possible:
* trend or chop
* you must let the open confirm it
### **EXPANSION-LEANING** (Overnight Range > 50%)
Overnight was very active. The open is more likely to:
* move faster
* expand range quickly
* have stronger directional pushes (or sharp swings)
**Important:** Expansion does not guarantee a clean trend. It means **movement is more likely**.
---
# How I use this indicator with ORB (my rules)
This indicator is not a buy/sell signal by itself.
I use it to decide **which ORB style to trade**.
## Step 1 — Check the “Regime” before the open
* If the indicator reads **EXPANSION-LEANING**, I treat it like a momentum environment.
* If the indicator reads **CHOP-LEANING**, I treat it like a confirmation environment.
* If it reads **NEUTRAL**, I stay selective and let price action confirm.
---
## Step 2 — ORB Execution Rules
### ✅ If **EXPANSION-LEANING** (momentum day)
**Goal:** Catch the move early and avoid missing the breakout.
**My ORB plan:**
* Build my opening range using the **5-minute ORB**
* Enter on a **break of the ORB level**
* Use the **1-minute timeframe** for the actual entry trigger
**How I confirm the break:**
* I want a clean break through the ORB level (not just a wick touch)
* If price snaps immediately back inside the ORB, I avoid chasing
This approach fits expansion days because the market can move quickly and waiting for perfect retests can cause you to miss the push.
---
### ✅ If **CHOP-LEANING** (confirmation day)
**Goal:** Avoid fakeouts and only enter when the break proves itself.
**My ORB plan:**
* Build my opening range using a **15-minute ORB**
* I do **not** enter on the first break
* I wait for a **break and retest**
* Then I use the **5-minute timeframe** to confirm the retest holds before entry
This fits chop days because breaks fail more often, so I require confirmation before committing.
---
### ✅ If **NEUTRAL**
**Goal:** Reduce low-quality trades.
**My ORB plan:**
* Treat it as “wait and see”
* Only take the break if price shows strong conviction (hold outside ORB)
* If price is whipping in and out of the range, I skip the trade
---
## Best practices
* This indicator works best on **1m / 5m / 15m charts** so the overnight high/low is captured accurately.
* Times are based on the symbol’s **exchange time**.
* Use proper risk management—futures can move fast, especially on expansion days.
---
## Disclaimer
This script is for educational purposes only and is not financial advice. Futures trading carries significant risk. Always use risk management and test any approach before trading live.
---
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.