Auction Session Ranges (AMT Edition) [ Alerts]

Auction Session Ranges (AMT Edition) [ Alerts]
► Overview
The Session Ranges ( AMT Edition) is a session-based market structure and auction analysis tool designed to visually reveal acceptance, rejection, imbalance, and continuation across the Asia, London, and New York CME trading sessions.
Unlike typical indicators, this script is grounded in Auction Market Theory (AMT) and session-based structure, focusing on how price behaves at session extremes rather than relying on lagging calculations, oscillators, or predictive algorithms. Its purpose is to highlight areas where the market has earned the right to be traded, providing traders with a clear, rules-based framework for high-probability directional trades.
Important for backtesting: To properly backtest session extremes, Interaction Lines, and Closest Opposite Extreme Lines, you must use TradingView’s replay mode, as real-time bar-by-bar progression is required to observe how the market interacts with session extremes over time.
► Key Innovations
This is not a conventional session high/low indicator. Its originality comes from several unique design elements:
Differentiates interaction from true acceptance: Price touching an extreme does not automatically indicate directional intent.
Separates directional confirmation from range-bound indecision: Only confirmed crossings beyond the Interaction Line signal actionable bias.
Tracks failed auctions and partial acceptance: No volume profile or order book data required.
Visual, rule-based trade permission: Signals are objective, minimizing subjective interpretation.
Interaction & Closest Opposite Extreme Lines: Together, these lines map how far an auction progresses after an extreme is tested, highlighting continuation, partial acceptance, or failed auctions.
► Core Concepts Explained
1. Session Highs & Lows (Solid Lines)
Plotted continuously for each CME session (Asia, London, New York).
Represent the current auction boundaries for that session.
2. True Interaction Lines (Thick Dotted Lines)
Drawn when price touches or breaks a session extreme:
Touching session high → dotted line at the low of that candle
Touching session low → dotted line at the high of that candle
Auction context:
Touching alone ≠ acceptance
Acceptance occurs only when price moves beyond the Interaction Line and holds
Trading principle:
Price has not crossed → no directional bias → do not trade
Price crosses and holds → directional bias established
3. Acceptance vs Rejection
Accepted direction: Price crosses and holds beyond the Interaction Line
Rejected direction: Price crosses the line but immediately reverses
Neutral / No-Trade: Price trapped between extreme and Interaction Line
Important: Acceptance is conditional and dynamic. Each time price crosses back over the Interaction Line, acceptance is lost.
4. New Extremes = Continuation
Once an Interaction Line is crossed, each new session extreme in that direction reinforces the trend.
Traders should only look for continuation setups along the established directional bias.
AMT interpretation:
Repeated new extremes → directional imbalance
Failure to make new extremes → potential balance or rotation
5. Closest Opposite Extreme Lines (Thin Dotted Lines)
After acceptance, the script tracks price progress toward the opposite session extreme.
Plotted only if price reaches a user-defined percentage of the session range.
Helps identify:
Full acceptance (price reaches opposite extreme)
Partial acceptance (price stalls)
Failed auctions (price cannot progress meaningfully)
Trading guidance once Closest Lines appear:
Partial acceptance: Price stalls near the Closest Line but does not fully reach the opposite extreme → bias remains valid, but the move may be weakening; consider scaling out or tightening stops.
Full acceptance: Price reaches the opposite extreme → directional auction fully confirmed; bias continues, but expect potential rotation or balance afterward.
Failed auction (cannot progress meaningfully): Price reverses before reaching the Closest Line → signals exhaustion; avoid chasing the move and treat as potential trend failure.
Note: Only relevant after Interaction Line is crossed; if price never crosses the Interaction Line, Closest Lines have no trading significance.
► Step-by-Step Usage
Wait for a session extreme
Let price interact with the session high or low.
Observe the Interaction Line
No cross → do not trade
Cross and hold → directional bias established
Trade in the direction of new extremes only
Ignore counter-trend trades unless the Interaction Line is lost
Manage risk using structure
Interaction Line acts as a dynamic invalidation level
Use Closest Lines for context
Partial acceptance → bias valid, watch for weakening
Full acceptance → bias strong, continuation likely
Failed attempt → potential exhaustion, do not chase
Useful for trade management, scaling, and expectation setting
► Price Retests & Pullbacks
Scenario:
Price crosses above the Interaction Line (e.g., from a low interaction).
Over the next 3–4 15-minute bars, price dips back toward the Interaction Line, with wicks touching it but no decisive close below.
Interpretation:
Initial Acceptance Confirmed: Bias remains valid while price holds above/below the line.
Temporary Pullback / Retest: Market is re-evaluating the auction; testing participant agreement.
Wicks Touching the Line: Partial probing or liquidity sweep; market still respects original acceptance.
Trading Implication:
Continuation bias remains intact.
Pullbacks near the Interaction Line offer lower-risk entries.
Decisive close below → acceptance lost, signaling trend failure or invalidation.
Market Psychology:
Healthy auction behavior: extreme tested → acceptance confirmed → boundary retested for liquidity → continuation.
Failure to hold above signals weak acceptance or exhaustion.
✅ Key Takeaways:
Holding above Interaction Line → bias intact, pullback = opportunity
Closing below Interaction Line → acceptance lost, bias invalidated
Wicks touching only → normal retest, still valid
► No-Trade Conditions
Avoid trading when:
Price never crosses the Interaction Line
Price remains trapped between the extreme and the Interaction Line
Market rotates without forming new extremes
These indicate balance, not directional opportunity.
► Alerts
Optional alerts trigger when price crosses an Interaction Line for:
Asia session
London session
New York session
Alerts signal possible acceptance, not automatic trade entries.
► Who This Script Is For
Best suited for traders who:
Trade session structure in futures, indices, or FX
Follow Auction Market Theory principles
Prefer objective, rules-based confirmation
Want fewer but higher-quality trade opportunities
Not intended for:
Indicator stacking
Predictive trading
High-frequency scalping without structure
► Final Notes
This script does not tell you when to buy or sell.
It shows where the market has earned the right to be traded.
Use it as a decision filter, not a prediction engine.