How to Use the Gap Snake Indicator

TrendSpider's Gap Snake indicator highlights the most recent gap on any timeframe and can be used with the Market Scanner, Strategy Tester, and Multi-Factor Alerts.

Gaps are areas of a chart where an asset's price either rises or falls from the previous day's close with no trading occurring between. Oftentimes, gaps occur when impactful news or events cause a flood of buyers or sellers to rush into an asset.

Many traders look for common and exhaustion gaps to be filled through a price reversal, although breakout or runaway gaps may be a sign that the market is accelerating in a given direction.

The Gap Snake indicator has four different conditions that can be used to build entry and exit conditions to identify these opportunities:

  • Gap Has Emerged
  • Gap Has Narrowed
  • Unfilled Gap Exists
  • Gap Has Closed

Gap Snake Scans

The Gap Snake indicator can be used to build entry and exit conditions just like any other TrendSpider indicator.

You can add the Gap Snake indicator to any scan in a few easy steps:

  1. Click on Market Scanner in the upper-right corner of the screen.
  2. Click on add parameter here and then Condition.
  3. Select the desired timeframe, select Indicator, and then search for "Gap Indicator".
  4. Configure the remaining conditions for the alert to fire.

Gap Has Emerged

Gap Has Emerged identifies any asset with a gap that has emerged in any direction.

Here's an example of conditions looking for a gap up in price:
Gap Has Emerged Example

Gap Has Narrowed

Gap Has Narrowed identifies any assets with a narrowing gap in a particular direction.

Here's an example of conditions looking for a narrowing gap down in price:

Gap Has Narrowed Example

Unfilled Gap Exists

Unfilled Gap Exists identifies any asset with an unfilled gap in recent price action.

Here's an example of conditions looking for an unfilled gap in any direction:

Unfilled Gap Exists

Gap Has Closed

Gap Has Closed identifies any assets where price gaps have recently closed.

Here's an example of conditions looking for closed gaps:

Gap Has Closed

Gap Snake with Strategy Tester

The Gap Snake indicator can be used with the Strategy Tester to validate gap-related trading strategies.

You can use the Gap Snake indicator with the Strategy Tester in a few easy steps:

  1. Click on Strategy Tester in the upper-right corner of the screen.
  2. Click on add parameter here and then Condition.
  3. Select the desired timeframe, select Indicator, and then search for "Gap Indicator".
  4. Configure the remaining conditions for the alert to fire.

Gap Has Emerged Entry or Exit

The same conditions from the scan above can be used to create entry or exit conditions within the Strategy Tester.

Gap Has Emerged Entry or Exit

Gap Has Narrowed Entry or Exit

The same conditions from the scan above can be used to look for narrowing gaps in a particular direction.

Gap Has Narrowed Entry or Exit

Gap Has Opened or Closed Entry or Exit

The same conditions from the scan above can look for gaps that have closed in recent price action.

Gap Has Open or Close Entry or Exit

Gap Snake with Alerts

The Gap Snake indicator can be used to create Multi-Factor Alerts. For example, you can easily identify if the price is trading within, breaking through or bouncing from a gap zone, as well as setup more intricate alerts for emerging gaps.

You can use the Gap Snake indicator to create Multi-Factor Alerts in a few easy steps:

  1. Click on Create Alert in the top-center of the screen or edit an existing alert.
  2. Click on add parameter here and then Condition.
  3. Select the desired timeframe, select Indicator, and then search for "Gap Indicator".
  4. Configure the remaining conditions for the alert to fire.

Gap Has Opened Up or Down

The most straightforward alerts can check for gaps that have opened up or down.

Gap Has Opened Up or Down

Gap Has Narrowed

Narrowing gaps can also be configured to work with Multi-Factor Alerts to provide real-time insights.

Gap Has Narrowed

Generic Break, Bounce or Touch

You can use the Break, Bounce or Touch settings within Multi-Factor Alerts with the Snake Gap.

Generic Break Bounce Touch

Gap Has Closed

You can easily create an alert to look for a gap that has closed for a particular asset.

Gap Has Closed

Apr 21, 2021

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