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Gap Rules Interaction

By LuxAlgoAug 9, 2026

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Gap Rules Interaction reads the opening gap the way session traders actually use it, in the first faithful chart build of 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 — 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 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.

Original indicatorBuilt in-house by LuxAlgo

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