Price Gap Indicator

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Jump Candle Indicator (Price Gap Only)
📌 Version: Pine Script v6
📌 Purpose: Detects significant price gaps between consecutive candles to identify potential trading opportunities.

📖 Overview
The Jump Candle Indicator highlights moments when the market experiences a sudden price jump, either up or down, due to overnight moves, news releases, or increased volatility.

It works by detecting candles where the opening price differs significantly from the previous closing price by a set threshold.

Unlike traditional momentum indicators, this script focuses purely on price gaps, making it ideal for traders who want to identify potential breakout zones or market inefficiencies.

⚙️ How It Works
User-Defined Threshold – Set a minimum price gap (default: $0.50).
Gap Up Condition – A candle is considered bullish if:
The current open is higher than the previous close by the defined threshold.
The candle closes higher than it opens (bullish candle).
Gap Down Condition – A candle is considered bearish if:
The current open is lower than the previous close by the defined threshold.
The candle closes lower than it opens (bearish candle).
Large Arrow Alerts –
Green Upward Triangle (📈) appears below bullish jump candles.
Red Downward Triangle (📉) appears above bearish jump candles.
🛠️ Customization
Price Gap Threshold ($): Adjust the gap size to detect smaller or larger jumps.
Visual Signals: Large green and red triangles for clear trade signals.
🎯 How to Use
✅ Breakout Traders – Spot potential trend continuations after a gap.
✅ Mean Reversion Traders – Identify overextended price movements that may revert.
✅ News/Event Traders – Track market reactions after earnings, reports, or major news.

🚨 Note: This indicator is best used with additional confirmation signals (volume, support/resistance levels, or trend analysis).

19 thg 2

Phát hành các Ghi chú

Price Gap Indicator

📌 Version: Pine Script v6
📌 Purpose: Detects significant price gaps between consecutive candles to identify potential trading opportunities.

📖 Overview
The Jump Candle Indicator highlights moments when the market experiences a sudden price jump, either up or down, due to overnight moves, news releases, or increased volatility.

It works by detecting candles where the opening price differs significantly from the previous closing price by a set threshold.

Unlike traditional momentum indicators, this script focuses purely on price gaps, making it ideal for traders who want to identify potential breakout zones or market inefficiencies.

⚙️ How It Works
User-Defined Threshold – Set a minimum price gap (default: $0.50).
Gap Up Condition – A candle is considered bullish if:
The current open is higher than the previous close by the defined threshold.
The candle closes higher than it opens (bullish candle).
Gap Down Condition – A candle is considered bearish if:
The current open is lower than the previous close by the defined threshold.
The candle closes lower than it opens (bearish candle).
Large Arrow Alerts –
Green Upward Triangle (📈) appears below bullish jump candles.
Red Downward Triangle (📉) appears above bearish jump candles.
🛠️ Customization
Price Gap Threshold ($): Adjust the gap size to detect smaller or larger jumps.
Visual Signals: Large green and red triangles for clear trade signals.
🎯 How to Use
✅ Breakout Traders – Spot potential trend continuations after a gap.
✅ Mean Reversion Traders – Identify overextended price movements that may revert.
✅ News/Event Traders – Track market reactions after earnings, reports, or major news.

🚨 Note: This indicator is best used with additional confirmation signals (volume, support/resistance levels, or trend analysis).