Opening Range Gaps [TakingProphets]

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.