Indicator: Gap Finder [KL]

8 בינו׳ 2022

About gaps:
A gap is a “jump” in a security’s price between the Open and the Prior Close. Gaps are very common in stocks during opening hours, especially when accompanied by catalysts.

What this indicator does:
This script will identify gaps that remained unfilled for at least one candle.

It is very common for gaps to be filled on the first candle, these gaps are arguably less meaningful, so they are ignored by the indicator to reduce the number of lines drawn.

Applications:
Since most gaps eventually get filled, the question is a matter of when. If going with the trend, a trader will open a long/short position when seeing an up/down gap. When going against the trend, then short/long the stock on up/down gaps and consider taking profits when price returns to where the gap originally occurred.

Originally intended for 1D timeframes, but gaps can occur in all timeframes. Applications are limitless.

9 בינו׳ 2022

הערות שחרור

Set overlay=true

4 במאי 2022

הערות שחרור

UpdateS:

• Added adjustable threshold (%) in settings. Gaps with distances below this benchmark will not be plotted.
  

16 ביולי 2022

הערות שחרור

Refactored, and added alerts.

24 ביולי 2022

הערות שחרור

Removing lines associated with filled gaps, only showing unfilled gaps.

28 ביולי 2022

הערות שחרור

Updated UI for settings.