Premarket Range Breakout Retests and Failed-Break Fades

Summary

This intraday strategy builds the premarket high and low, locks those levels at the market open, and watches for setups during a configurable opening window. Its breakout branch waits for a close beyond a range boundary, then a retest near that boundary and a renewed close in the breakout direction before entering. The fade branch instead looks for price to wick beyond a boundary and close back inside by a specified distance, then trades against the failed move.

Breakout and fade entries have separate stop distances and risk-reward targets, expressed using ticks or points, and the script limits activity to one completed setup per session. It also provides a midpoint and chart markers. The session is defined using London time, so its behavior depends on the intended market's session schedule and the chart's data. The document includes no performance results; its configurable thresholds and fixed assumptions need instrument-specific evaluation, including realistic costs and execution.

Key ideas

• The premarket high and low become reference levels at the defined market open.
• Breakout trades require a boundary close, a retest within tolerance, and renewed movement beyond the level.
• Fade trades take the opposite side after a wick crosses a boundary and price closes back inside.
• A configurable post-open window and one-trade-per-session state constrain the setups.
• Stops and profit targets are configurable, but the document provides no evidence of profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.