SPX Mapped Gaps [Mxwll]

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Hello traders 👋

This indicator "SPX Mapped Gaps" detects gaps from the SPX (or the trader's choice of index/asset) and plots them for the asset on your chart!

Features

• Selectable comparison symbol
  
• Gaps from the selected symbol (SPX by default) are plotted for the asset on your chart - serving as potential support/resistance levels!
  
• Closest gaps from comparison symbol displayed in upper-right table
  
• Overlapped gaps deleted automatically - less clutter!
  

How this script works

The "SPX Mapped Gaps" is designed to help traders determine price levels for the asset on their chart where a major index (any asset) gapped up or down.

Of course, a gap that occurs on SPX (4-digit price) is incompatible with the price chart of BTC (5-digit price). To circumvent this, the percentage distance of the gap from SPX is determined, and a gap level is drawn equidistantly (up/down) from the open price of the asset on your chart. With this method, the proportion of the gap is maintained at the price area it occurred for the asset on your chart!




The image above outlines functionality for the indicator!

Key points:

• Up gaps are denoted by green boxes
  
• Down gaps are denoted by red boxes
  
• All gaps are listed with their start and end price for the comparison asset (SPX for the example). These labels can be hidden at the user's discretion.
  
• Gaps are expected to act as support/resistance during their lifetime
  

The image above explains the output of the script, including line style indications!

Solid lines indicate that the leverage used for at your entry price constitutes an active trade. Dotted lines mean the trade has already achieved your profit target for that leverage, or stopped out.



The image above explains the table attached to the indicator!

This table displays the closest gaps to the current asset price. The status (up gap or down gap) from the gap to the current price is also detailed.

Why are gaps on the SPX, or major index, relevant to BTC and other assets?

When a gap on the major indices occurs, it's expected that strong aggregate buying or selling pressure will transpire for BTC and other coins. Due to this, the presence of a gap on a major index might correspond to increased activity on smaller market-cap assets with some degree of positive correlation to the index. Consequently, the price level for the asset at which a gap for the major index occurred may function as support/resistance for future price!

That is all for this - thanks traders!