An automated tool that tracks overnight high and low price levels, providing visual reference points for traders by plotting critical support and resistance zones from the previous night's trading session.
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The script identifies the overnight trading session by defining specific start and end times, typically spanning across two calendar days. During this period, it dynamically tracks and updates the highest and lowest price levels reached, creating a real-time record of market price extremes.
As the session progresses, the script continuously compares current price highs and lows against existing overnight high and low values, using mathematical functions to update these reference points. Once the session concludes, the script resets these values and prepares for the next trading period.
Why it may be useful
Overnight price levels provide crucial insights into market sentiment and potential trading opportunities by revealing key support and resistance zones established during off-hours trading. These levels help traders understand potential market direction, identify potential breakout points, and make more informed trading decisions.
By automating the tracking and visualization of these levels, traders can quickly assess market dynamics without manually plotting and tracking overnight price ranges. This approach saves time and provides a systematic method for incorporating overnight market information into trading strategies.
When to explore it
This signal is most effective for traders focusing on intraday and short-term trading strategies, particularly in markets with significant overnight price movements. It works best in highly liquid markets like stocks, futures, and forex, where overnight sessions can reveal important market sentiment shifts.
Traders can utilize this tool to identify potential breakout levels, assess market volatility, and develop entry and exit strategies based on overnight price ranges. It is particularly useful for day traders and scalpers who rely on quick, precise market insights to make trading decisions.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
