Description:
The Gap Detector is a technical analysis tool designed to identify price gaps in the trading chart. Gaps occur when the price jumps significantly between two consecutive trading periods without any trading in between, often indicating a sudden shift in market sentiment. This tool automatically highlights these gaps, providing visual cues for potential significant market events.
Input Parameters:
- Gap Factor: The larger the value, the fewer gaps will be detected.
Use Cases:
- Market Sentiment Analysis: Detecting gaps can give insights into bullish or bearish sentiment shifts.
- Entry and Exit Points: Traders can use gaps as signals for potential entry or exit points, as gaps often represent the start of a new trend.
- Risk Management: Identifying gaps can help traders manage risk by adjusting stop losses to account for increased volatility.
This feature can not be used in visual scripting but we have created the Gap Proximity Indicator to help you identify ticker symbols that are currently inside of or near a gap.
Do you want to learn more? Check out our blogpost.