Daily Close GAP Detector [Yosiet]

17 Mar

User Manual for "Daily Close GAP Detector [Yosiet]"

Overview
This script is designed to help traders identify and react to significant gaps in daily market prices. It plots daily open and close prices and highlights significant gaps with a cross. The script is particularly useful for identifying potential breakouts or reversals based on these gaps.

Configuration

• GAP Close Threshold: This input allows you to set a threshold for the gap size that you consider significant. The default value is 0.001.
  
• Timeframe Seeker: This input lets you choose the timeframe for the gap detection. The default is 'D' for daily.
  

Features

• Daily Open and Close Lines: The script plots daily open and close prices. If the close price is lower than the open price, the line is colored red; otherwise, it's green.
  
• Gap Detection: It calculates the difference between the current day's close and the previous day's close, both adjusted for the selected timeframe. If this difference exceeds the threshold, it's considered a significant gap.
  
• Significant Gap Indicator: A cross is plotted on the chart to indicate significant gaps. The color of the cross indicates whether the gap is a short or long gap: red for short gaps and green for long gaps.
  
• Alert Conditions: The script sets up alert conditions for short and long gap breakouts. You can customize the alert messages to include details like the ticker symbol, interval, price, and exchange.
  

How to Use

2. Add the Script to Your Chart: Copy the script into the Pine Script editor on TradingView and add it to your chart.
   
3. Configure Inputs: Adjust the "GAP Close Threshold" and "Timeframe Seeker" inputs as needed.
   
4. Review the Chart: The script will overlay daily open and close prices on your chart, along with crosses indicating significant gaps.
   
5. Set Alerts: Use the script's alert conditions to set up alerts for short and long gap breakouts. You can customize the alert messages to suit your trading strategy.
   

Extending the Code
To extend this script, you can modify the gap detection logic, add more indicators, or integrate it with other scripts for a more comprehensive trading strategy. Remember to test any changes thoroughly before using them in live trading.