Midnight Open Retracement [LuxAlgo]

The Midnight Open Retracement [LuxAlgo] indicator highlights the 12:00 AM ET opening price and provides real-time probability statistics for price retracing to this level during the New York session.

Designed specifically with NQ (Nasdaq 100) futures data in mind, the tool helps traders identify high-probability "magnet" levels for New York open scalps based on historical performance.

🔶 USAGE

The Midnight Open is a cornerstone of ICT concepts, acting as a "true" daily open that often serves as a point of institutional re-accumulation or distribution. This script automates the identification of this level and provides a dashboard to help traders decide when to expect a retracement.

🔹 Identifying the Bias

The script compares the New York opening price (9:30 AM ET) to the Midnight opening price:

• If NY opens above the Midnight Open, the indicator identifies a potential bearish retracement bias toward the level.
• If NY opens below the Midnight Open, the indicator identifies a potential bullish retracement bias toward the level.

🔹 Using as a Profit Target

Because the Midnight Open is retraced to frequently, it serves as an ideal Take Profit (TP) target for opening range scalps. The indicator marks the exact moment a retracement occurs with a visual marker, confirming the level has been tested.

🔶 DETAILS

The statistics integrated into this tool are based on extensive backtesting of NQ futures over 6-month periods. Understanding these probabilities allows traders to filter out low-conviction setups and focus on high-probability days.

🔹 The Core Probabilities

• When price opens above the midnight level, it retraces to touch it 74% of the time.
• When price opens below the midnight level, it retraces to touch it 63% of the time.

🔹 Weekday Variance

Not all trading days are equal. The script accounts for "By Weekday" statistics:

• High Probability (Wednesdays): On Wednesdays, retracement probabilities can jump as high as 89% for opens above the midnight level.
• Low Probability (Mondays): Mondays often exhibit "Avoid" criteria, with retracement probabilities frequently falling below 60%.

The dashboard dynamically updates the "Probability of Retracement" based on the current day of the week, helping you stay aligned with historical data.

🔶 SETTINGS

🔹 Session Settings

• Timezone Mode: Choose between Exchange time or "America/New_York" (recommended for ICT concepts).
• Midnight Open Time: The specific time used to set the daily baseline.
• NY Open Time: The time used to determine the session opening bias.
• NY Session Range: Defines the boundary for the New York session box.

🔹 Visual Settings

• Show Midnight Level: Toggles the horizontal line representing the midnight price.
• Show Retrace Circle: Displays markers on the chart when the retracement goal is met.
• Show NY Session Box: Draws a dynamic box for the NY session that changes color based on the current price relative to the open.

🔹 Dashboard Settings

• Show Insights Report: Toggles the statistics dashboard on the chart.
• Position/Size: Controls the UI placement and scale of the data table.