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Opening Range Gaps [TakingProphets]

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What is an Opening Range Gap (ORG)?

In ICT, the Opening Range Gap is defined as the price difference between the previous session’s close (e.g., 4:00 PM EST in U.S. indices) and the current day’s open (9:30 AM EST).
That gap is a liquidity void—an area where no trading occurred during regular hours.

Why ICT Traders Care About ORG

Liquidity Void (Gap Fill Logic)

-Because the gap is an untraded area, it naturally acts as a draw on liquidity.

-Price often seeks to rebalance by retracing into or fully filling this void.

Premium/Discount Sensitivity

-Once the ORG is defined, ICT treats it as a mini dealing range.

-Above EQ (Consequent Encroachment) = algorithmic premium (sell-sensitive).

-Below EQ = algorithmic discount (buy-sensitive).

-Price reaction at these levels gives a precise read on institutional intent intraday.

Support/Resistance from ORG

-If the session opens above prior close, the gap often acts as support until violated.

-If the session opens below prior close, the gap often acts as resistance until reclaimed.

Key ICT Concepts Anchored to ORG

Consequent Encroachment (CE): The midpoint of the gap. The algo is highly sensitive to CE as a decision point: reject → continuation; reclaim → reversal.

Draw on Liquidity (DoL): Price is algorithmically “pulled” toward gap fills, CE, or the opposite side of the ORG.

Order Flow Confirmation: If price ignores the gap and runs away from it, this signals strong institutional order flow in that direction.

Confluence with Other Tools: FVGs, OBs, and HTF PD arrays often overlap with ORG levels, strengthening setups.

Practical Application for Traders

Bias Formation:

Use ORG EQ as a line in the sand for intraday bias.

If price trades below ORG EQ after the open → look for short setups into the prior day’s low or external liquidity.

If price trades above ORG EQ → favor longs into highs/liquidity pools.

Execution Framework:

Wait for liquidity raids or market structure shifts at ORG edges (.00, .25, .50, .75).

Target: EQ, opposite quarter, or full gap fill.

Precision Reads:

ORG lines let traders anticipate where algorithms are likely to respond, providing mechanical invalidation and clear targets without clutter.

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.