PROTECTED SOURCE SCRIPT
NWOG & Dynamic Event Horizon°
Updated
The ICT concept of New Week Opening Gaps (NWOG) is simply an imbalance that manifests at each Week Opening time. This gap in price is formed by the Close on Friday at 5PM EST and the open of Sunday at 6PM EST.
According to ICT's studies, this gap in price holds a lot of significance when it comes to price action, acting as a magnet or a point of reference during the week (and following weeks).
The Event Horizon (EH) is simply the midpoint between two of these NWOGs. The EH can be very useful to determine where price is drawn towards from a liquidity perspective. If price reaches this level it is probable that it will continue to the next NWOG, as explained by ICT himself.
In my own studies I have noticed that price also tends to respect and use the Optimal Trade Entry (OTE) levels drawn from both NWOGs in question. OTE levels are nothing but fibonacci 0.79 – 0.705 – 0.68 levels.
I decided to put all of these into an indicator that dynamically selects the most relevant NWOG Dealing Range and plots their EH and OTE levels automatically.
Available Alerts:
– Cross Below Event Horizon
– Cross Above Event Horizon
– New NWOG Range Established
Important Remarks:
– Note that although these work on all timeframes, the lower in resolution one goes, the less gaps will be available due to data availability.
– This indicator works on charts that have the NWOG already present in chart (i.e. no crypto assets, unless one looks at CME crypto futures such as BTC1! and ETH1!).
– The dollar index's NWOGs have a slightly different timestamp, however this has been taken care of and will allow to be plotted ONLY for the TVC:DXY ticker.
TrandingView struggles to display the indicator correctly for the default view, check out its accurate appearance here:
https://www.tradingview.com/x/sKHFOcS0/
According to ICT's studies, this gap in price holds a lot of significance when it comes to price action, acting as a magnet or a point of reference during the week (and following weeks).
The Event Horizon (EH) is simply the midpoint between two of these NWOGs. The EH can be very useful to determine where price is drawn towards from a liquidity perspective. If price reaches this level it is probable that it will continue to the next NWOG, as explained by ICT himself.
In my own studies I have noticed that price also tends to respect and use the Optimal Trade Entry (OTE) levels drawn from both NWOGs in question. OTE levels are nothing but fibonacci 0.79 – 0.705 – 0.68 levels.
I decided to put all of these into an indicator that dynamically selects the most relevant NWOG Dealing Range and plots their EH and OTE levels automatically.
Available Alerts:
– Cross Below Event Horizon
– Cross Above Event Horizon
– New NWOG Range Established
Important Remarks:
– Note that although these work on all timeframes, the lower in resolution one goes, the less gaps will be available due to data availability.
– This indicator works on charts that have the NWOG already present in chart (i.e. no crypto assets, unless one looks at CME crypto futures such as BTC1! and ETH1!).
– The dollar index's NWOGs have a slightly different timestamp, however this has been taken care of and will allow to be plotted ONLY for the TVC:DXY ticker.
TrandingView struggles to display the indicator correctly for the default view, check out its accurate appearance here:
https://www.tradingview.com/x/sKHFOcS0/
Release Notes
Update: script now catches older NWOGs on lower timeframes.Before
After
Release Notes
Bug Fix: removed redundant codeRelease Notes
Bug fix: alerts were not triggering, issue resolvedRelease Notes
Added Customization: after some feedback from early users added more user inputs for visual customization
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Disclaimer
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