ICT NWOG/NDOG Gaps New Opening Gaps

The ICT NWOG/NDOG Gaps indicator automatically identifies and plots New Day, Week, and Monthly Opening Gaps to highlight institutional reference points and potential support or resistance zones.

Usage

The Usage section describes how the script can be used to identify key market levels based on ICT (Inner Circle Trader) concepts.

• Support and Resistance: Opening gaps represent price differences between sessions. When the market opens at a gap, the range between the previous close and the new open often acts as a pivot. Traders look for price to bounce off these zones or retest them after a breakout.
• Gap Fill Strategy: Traders can monitor if price returns to "fill" the gap (reaching the previous session's closing price). This is common in mean-reverting environments.
• Institutional Reference: Since these gaps are based on higher-timeframe session transitions, they provide high-probability levels that intraday traders use to align with the weekly or monthly narrative.

Details

This tool calculates gaps by comparing the closing price of the previous period (Day, Week, or Month) to the opening price of the current period.

• NWOG (New Week Opening Gap): The gap between Friday's close and Sunday's open.
• NDOG (New Day Opening Gap): The gap between the previous day's close and the current day's open.
• NMOG (New Monthly Opening Gap): The gap between the last day of the previous month's close and the first day of the new month's open.

The indicator tracks these ranges until they are "mitigated" (price trades through them) or until the user-defined limit is reached. It also distinguishes between supply gaps (bearish) and demand gaps (bullish) based on the direction of the opening jump.

Settings

Daily Range

• Show Daily Opening Range: Toggles the visibility of NDOG levels.
• Color: Sets the fill color for daily gaps.
• Max Opening Range Update Method: Determines whether to show 'All' unmitigated gaps or a 'Custom' specific amount.
• Max Opening Range Update: The specific number of historical daily gaps to display when using the Custom method.

Weekly Range

• Show Weekly Opening Range: Toggles the visibility of NWOG levels.
• Color: Sets the fill color for weekly gaps.
• Max Opening Range Update Method: Choose between displaying all unmitigated gaps or a fixed number.
• Max Opening Range Update: The number of historical weekly gaps to track.

Monthly Range

• Show Monthly Opening Range: Toggles the visibility of NMOG levels.
• Color: Sets the fill color for monthly gaps.
• Max Opening Range Update Method: Selection for showing all or a limited number of gaps.
• Max Opening Range Update: The number of historical monthly gaps to track.

FAQ

How do I interpret a mitigated gap? A gap is considered mitigated when price action trades entirely through the gap range. The indicator can be set to stop extending the lines once this occurs, signaling that the level may no longer hold the same institutional weight.

Can I set alerts for these gaps? Yes, the script includes built-in alert functionality that triggers when a new gap is detected or when a previously active gap is mitigated by price action.

How can I access ICT NWOG/NDOG Gaps? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.