OPEN-SOURCE SCRIPT
CME Gap Detector [CryptoSea]
The CME Gap Indicator, is a tool designed to identify and visualize potential price gaps in the cryptocurrency market, particularly focusing on gaps that occur during the weekend trading sessions. By highlighting these gaps, traders can gain insights into potential market movements and anticipate price behavior.
Key Features
How it Works
Application
The CME Gap indicator offers traders a valuable tool for analyzing weekend price gaps in the cryptocurrency market, empowering them to make informed trading decisions and capitalize on market opportunities.
Key Features
- Gap Identification: The indicator identifies gaps in price between the Friday close and the subsequent opening price on Monday. It plots these gaps on the chart, allowing traders to easily visualize and analyze their significance.
- Weekend Price Comparison: It compares the closing price on Friday with the opening price on Monday to determine whether a gap exists and its magnitude.
- Customizable Visualization: Traders have the option to customize the visualization of the gaps, including the color scheme for better clarity and visibility on the chart.
- Neutral Candle Color Option: Users can choose to display neutral candle colors, enhancing the readability of the chart and reducing visual clutter.
How it Works
- Data Fetching and Calculation: The indicator fetches the daily close price and calculates whether a gap exists between the Friday close and the subsequent Monday opening price.
- Plotting: It plots the current price and the previous Friday's close on the chart, making it easy for traders to compare and analyze.
- Gradient Fill: The indicator incorporates a gradient fill feature to visually represent the magnitude of the gap, providing additional insights into market sentiment.
- Weekend Line Logic: It includes logic to identify Sunday bars and mark them on the chart, aiding traders in distinguishing weekend trading sessions.
Application
- Gap Trading Strategy: Traders can use the identified gaps as potential entry or exit points in their trading strategies, considering the tendency of price to fill gaps over time.
- Market Sentiment Analysis: Analyzing the presence and size of weekend gaps can provide valuable insights into market sentiment and participant behavior.
- Risk Management: Understanding the existence and significance of gaps can help traders manage their risk exposure and make informed decisions.
The CME Gap indicator offers traders a valuable tool for analyzing weekend price gaps in the cryptocurrency market, empowering them to make informed trading decisions and capitalize on market opportunities.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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