ST GAP Pivots
The ST Gap Pivots indicator is designed for searching and displaying price gaps between two candlesticks. The market regularity suggests that the price almost always returns to the levels where price gaps were formed at the opening of a new bar.
The indicator displays only "open" gap levels, i.e.,the levels to which the price has not come back after the gap. The indicator also displays statistics of open and already closed gaps. The statistics are displayed in the form of comments to the chart.
The indicator draws resistance and support lines at the positions of the found gaps. Existence time is indicated for each lines.
- Min gap size in pips (int) - the minimum gap size in pips;
- Total history bars (int) - the number of history bars, among which the indicator will search for gaps (if set to 0, the indicator will show only new emerging gaps);
- Support Color (color) - the color of a support line created based on a gap;
- Resistance Color (color) - the color of a resistant line created based on a gap;
- Label Font Size (int) - font size for the labels of support and resistance lines.
Tips on the Indicator Use
- It is recommended to set short targets, towards the nearest resistance or support line.
- It is recommended to wait several bars, before entering toward the found levels of support and resistance;
- The short term probability of hitting lines based on smaller gaps is higher than the line on the basis of large gaps (e.g., if the line resistance is open for a gap of 150 pips, the line is unlikely to hit soon; the price is likely continue to move away from this gap, will and come back after a considerable time.
- It is recommended to use first fewer lines. For example, if you have three open resistance lines, and one open support line, it is recommended to enter a deal in the direction towards the support line.
- If there are multiple lines in one direction and no open lines in the other, you should wait for the first of the open lines to be closed before entering.