Indicators: Gaps

Gap Indicator for ProRealTime

Display bullish and bearish Gaps automatically on your charts

A gap is a price area where no trading occurs between two consecutive candles. It can be bullish or bearish.

In technical analysis, gaps are generally classified into four main categories:

• Common Gap: often less significant, it frequently appears within a consolidation area and may be filled relatively quickly.
• Breakaway Gap: it occurs when price breaks out of a consolidation area or crosses an important technical level.
• Continuation Gap (Runaway Gap): it appears during an established trend and may indicate that the current move is continuing.
• Exhaustion Gap: it generally appears near the end of a trend and may signal that the current move is losing momentum.

Gap areas are often monitored by traders because price may retest or progressively fill them. Depending on the market context, they can therefore become technical areas to watch, for example as potential price targets, support or resistance.

Description

The Gap Indicator automatically identifies and displays gaps directly on your ProRealTime charts.

Each detected gap is displayed as a colored area, making it easy to locate and monitor as new candles appear. The indicator can also keep closed gaps visible on the chart or display their progressive filling as price moves through the gap area.

The indicator provides four validation methods to precisely define how a gap should be detected:

• between the wicks of the two candles
• between the bodies of the two candles
• between the close of the first candle and the wick of the next candle
• between the close of the first candle and the open of the next candle

Many parameters allow you to adapt the display to your own criteria. All settings can be adjusted directly from the indicator's “Configuration” menu in ProRealTime, without modifying the code.

Adjustable criteria:

• Gap validation method
• Number of candles analyzed

Display options:

• Display of closed gaps
• Progressive gap filling as price moves
• Independent colors for bullish and bearish gaps
• Gap area transparency

Video presentation:

Details of available settings:

Download guide

Characteristics

• Works on all TimeFrames
• ProRealTime V11 and later versions compatible
• Free ProRealTime (daily closings) compatible
• Settings can be adjusted without modifying the code
• Automatic and free updates for life

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Disclaimer

Our proposed tools (indicators and screeners) are not investment advices but tools allowing everyone to find specific graphic configurations. The automated trading systems offered have been developed and optimised using historical data; however, past performance is no guarantee of future results. Investing in the financial markets involves risks up to and including the total loss of capital. The user of the proposed tools understands and accepts that the use of these tools is under his sole and entire responsibility. P2C Trading declines all responsibility in the use of the tools and the consequences that would result.