Institutional Gap Master

Overview The Institutional Gap Master is a precision execution tool built specifically for the "Gap Fade" strategy popularized by John Carter. Designed for high-liquidity environments, this script automates the professional categorization of morning gaps to identify high-probability "Fade" opportunities and "Pro Gap" trend days.

Optimal Execution & Timeframes To maintain institutional-grade accuracy, this script is optimized for:

Assets: Major market indexes (SPX, NDX, DJI) and their highly liquid ETFs (SPY, QQQ, DIA).

Timeframes: Best utilized on the 5-minute or 15-minute charts. These timeframes provide the necessary granularity to see the opening range develop while filtering out the "noise" of the 1-minute chart.

The Methodology Based on the rules established in Mastering the Trade, this indicator digitizes the gap-trading framework. It evaluates the "Opening Gap"—the distance between the current open and the previous day's close—to determine the market's immediate bias.

Key Institutional Features:

John Carter Gap Tiering: The script automatically categorizes gaps into Small, Medium, Large, and Pro Gaps. This allows you to instantly know if you should be looking for a mean-reversion (Fade) to the previous close or a trend-continuation (Pro Gap).

The 10:00 AM Rule (NY Time): A critical component of the Carter system. Our script includes a "10 AM Validity Check" alert that confirms if the gap setup remains valid after the initial morning volatility subsides.

Automated Target & Stop Logic: The script identifies the "Previous Day Close" as the primary target for fills and calculates dynamic stop-loss levels based on the gap's size.

Real-Time Backtest Analytics: We have integrated a "Fade Stats" engine that tracks the historical win rate of the gap-fill strategy specifically on the asset you are viewing.

Why ClearPoint? ClearPoint Trading focuses on Institutional Minimalism. We provide a clean, dark-mode-optimized dashboard that tells you the Tier, Recommended Position Size, and R:R Ratio without distracting you from the price action.

How to Trade This Script:

Monitor the Open: On a 5m or 15m chart of an Index/ETF, check the dashboard for the Gap Tier.

Verify the R:R: The script labels a setup as "★ PRIME" only if the reward-to-risk ratio is mathematically favorable.

The 10 AM Confirmation: Use the built-in alert to confirm the setup holds after the first 30 minutes of the session.

Pro Gaps: If a "Pro Gap" is detected, the script warns "NO FADE," signaling a high-probability trend day.