How to avoid entry gaps?

[Alberto Tortella]

Hi all,

I have this entry condition: Bid > High[1], were High[1] is the highest bid of the previous daily bar.

I need a condition to avoid the trade if the Bid price forms an up gap with High[1].

How can I proceed?

Thank you!

[Brian Dee - Random Trader]

AJ

Is this what you're after?

if (Open[0] > High[1]) return (0) // Do not proceed if up gap

Good luck

-BB-

[Alberto Tortella]

Thanks, you gave me the right idea.

With your condition, if the open price forms a gap, then the trade is never placed during the current daily bar.

I write Low[0] > High[1].

In this way, if there is an open gap the trade is not placed, but if the price retrace under High[1], then Low[0] became < High[1] and I can place the order if the bid price break High[1] another time.