This indicator displays gaps on a chart within a specified range which have not been filled. It offers the ability to set the minimum gap size to detect as a multiple of the average true range (ATR), as well as the allowed distance from a gap fill for the gap to be considered filled. The use of ATR allows the gap threshold to dynamically change as the stock price and volatility change over time. Lastly, it offers the ability to show gaps which have been filled in addition to unfilled gaps.
The following describes each input's effect on the indicator.
The following describes each input's effect on the indicator.
- Bars to Search Back: specifies how many bars back in the chart to search for gaps and gap fills (maximum 5000).
- ATR Length: specifies the length of the ATR() function used for thresholding
- Minimum ATR Multiple For Gap Detection: The minimum gap size as a multiple of the ATR
- Minimum ATR Multiple For Gap Fill: The minimum distance between a bar high/low and a gap for it to be considered "filled" as a multiple of ATR