# Gap Rules Interaction

Gap Rules Interaction is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Reads each session's opening gap against the prior day's map and the opening range on intraday charts: gaps are sized against a 10-day average daily range, classed as inside or beyond the prior range, and the 30-minute opening range is graded as accepting or rejecting the gap. A dashboard layers gap fill, the gapped-over level and a live day read, with eleven alerts from classification through negation.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 17, 2026.
- Access: free.
- Concepts: [Gap Rules Interaction](https://www.luxalgo.com/library/concept/gap-rules-interaction/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cogmswyimached5n2f21j8io
- Page: https://www.luxalgo.com/library/indicator/gap-rules-interaction/

**Gap Rules Interaction** reads the opening gap the way session traders actually use it, in the first faithful chart build of [gap rules interaction](https://www.luxalgo.com/library/concept/gap-rules-interaction/). Each session's gap is sized against the recent average daily range and classed as negligible, inside the prior day's range or beyond it; the prior high, low and close stay drawn as reference, the gap zone is boxed, and the opening range forms, locks, and declares itself for or against the gap. A dashboard rolls the layers into a single day read.

## How to Trade the Gap Rules Interaction?

- **Opening range read**: a range built entirely beyond the gapped-over level is acceptance; forming back through it into prior territory is rejection. Both are alerted at lock-in.
- **Continuation alignment**: gap beyond the prior range, price holding the opening range's gap-side half, no re-entry through the gapped-over level. These are gap-and-go conditions, alerted once per session.
- **Fade alignment**: price back inside accepted territory rotating toward the prior close, risk framed at the opening-range extreme.
- **Fill and negation**: touching the prior close is a full fill; closing through it negates the gap's structure, imbalance back to balance.

## Gap Rules Interaction Settings

- **Custom Session** (default off) with its window (default 0930-1600): measure everything inside a session, recommended on futures and extended-hours charts.
- **Sessions Shown** (default 5): sessions keeping their drawings.
- **Average Daily Range Length** (default 10): the gap-sizing baseline.
- **Negligible Gap Threshold** (default 0.1): gaps under this fraction of the ADR get no playbook.
- **Opening Range Duration (Minutes)** (default 30): use a timeframe at or below it.
- Display: **Prior High / Low**, **Prior Close (Gap Fill Level)**, **Gap Zone**, **Opening Range**, **Gap Classification Label** and **Dashboard** (all on); **Event Markers** (off).

## Frequently Asked Questions

### How does this differ from a Gap-and-Go tool?

[Gap-and-Go](https://www.luxalgo.com/library/indicator/gap-and-go/) isolates one play: the strong gap that never looks back. This build classifies every gap first and lets the layers decide. The day read tracks whether continuation, fade or negation is unfolding.

### Why does the dashboard say "no gap playbook"?

The open landed under the negligible threshold of the average daily range. The same point gap can be out of balance on a quiet symbol and meaningless on a volatile one, so classification is relative by design.

### What is the gapped-over level?

The nearest prior-day level behind price at the open: the prior high or low beyond the entire range, the prior close inside it. A test that holds is the continuation cue; a close back through it points the day toward the gap fill.

## Related indicators

- [8AM 1H Range & Breaks](https://www.luxalgo.com/library/indicator/8am-1h-range-breaks/) (Opening Range & ORB): markdown at https://www.luxalgo.com/library/indicator/8am-1h-range-breaks.md
- [8am Road Map Zone](https://www.luxalgo.com/library/indicator/8am-road-map-zone/) (Opening Range & ORB): markdown at https://www.luxalgo.com/library/indicator/8am-road-map-zone.md
- [Ultimate Opening Range Breakout](https://www.luxalgo.com/library/indicator/ultimate-opening-range-breakout/) (Opening Range & ORB): markdown at https://www.luxalgo.com/library/indicator/ultimate-opening-range-breakout.md
- [9:30 AM 15m Fib Breakout](https://www.luxalgo.com/library/indicator/9-30-am-15m-fib-breakout/) (Opening Range & ORB): markdown at https://www.luxalgo.com/library/indicator/9-30-am-15m-fib-breakout.md
- [Opening Range with Breakouts & Targets](https://www.luxalgo.com/library/indicator/opening-range-with-breakouts-targets/) (Opening Range & ORB): markdown at https://www.luxalgo.com/library/indicator/opening-range-with-breakouts-targets.md
- [DR/IDR Candles](https://www.luxalgo.com/library/indicator/dr-idr-candles/) (Opening Range & ORB): markdown at https://www.luxalgo.com/library/indicator/dr-idr-candles.md
- [Asia Sweep Reversals](https://www.luxalgo.com/library/indicator/asia-sweep-reversals/) (Time, Sessions & Seasonality): markdown at https://www.luxalgo.com/library/indicator/asia-sweep-reversals.md
- [Sessions](https://www.luxalgo.com/library/indicator/sessions/) (Time, Sessions & Seasonality): markdown at https://www.luxalgo.com/library/indicator/sessions.md

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Source: https://www.luxalgo.com/library/indicator/gap-rules-interaction/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
