Power Hour Breakout Signals [LuxAlgo]

The Power Hour Breakout tool helps traders identify key price levels from the Power Hour and spot breakouts from those levels easily. This tool features Power Hour extensions, Fibonacci levels, and session break marks for the trader's convenience.

🔶 USAGE



The Power Hour is defined as the last hour of the trading session and is set by default from 3:00 p.m. to 4:00 p.m. New York time. During this period, volume and volatility enter the market. Traders using higher timeframes may use this period to enter or exit positions by placing MOC (Market on Close) orders.

This tool highlights the Power Hour and the top and bottom price levels. Each time prices break out from these levels, a signal is displayed on the chart.

We can use the Power Hour to gauge market sentiment:

• Bullish sentiment: Price trades above the Power Hour.
  
• Mixed sentiment: Price trades within the Power Hour.
  
• Bearish sentiment: Price trades below the Power Hour.
  

🔹 Displaying Power Hours and Breakouts



By default, all detected Power Hours are displayed. Traders can manually adjust this number by disabling the "Display All" parameter in the Settings panel.

Breakouts are displayed by default, too, but this feature can be disabled as well.

The chart above shows different configurations of these parameters.

🔹 Power Hour Extensions



Traders can use Power Hour extensions as potential targets for breakout signals.

In the settings panel, traders can select the percentage of the Power Hour price range to use for each extension. For example, 100% uses the full range, 200% uses the range twice, and so on.

As seen on the chart, traders can configure different percentages for the top and bottom extensions.

🔹 Fibonacci Levels



Traders can display default or custom Fibonacci levels on the Power Hour range to identify retracement opportunities and evaluate market movement strength. Each level can be enabled or disabled, as well as customized by level, color, and line style.

For example, as we can see on the chart, prices attempt to break out at the Power Hour top level, then retrace to the 0.618 Fibonacci level, and then rise to the 200% Power Hour top extension.

🔶 SETTINGS

• Display Last X Power Hours: Select how many Power Hours to display or enable the Display All feature.
  
• Power Hour (NY Time): Choose a custom Power Hour in New York time.
  

🔹 Breakouts

• Breakouts: Enable or disable breakouts.
  
• Bullish Breakout: Select color for bullish breakouts.
  
• Bearish Breakout: Select color for bearish breakouts.
  

🔹 Extensions

• Top Extension: Enable or disable the top extension and choose the percentage of Power Hour to use.
  
• Bottom extension: Enable or disable the bottom extension and choose the percentage of Power Hour to use.
  

🔹 Fibonacci Levels

• Display Fibonacci: Enable or disable Fibonacci levels.
  
• Reverse: Reverse Fibonacci levels.
  
• Levels, Colors & Style
  
• Display Labels: Enable or disable labels and choose text size.
  

🔹 Style

• Power Hour Colors
  
• Extension Transparency: Choose the extension's transparency. 0 is solid, and 100 is fully transparent.
  
• Session Breaks: Enable or disable session breaks.