# Garman-Klass–Yang-Zhang Hybrid Garman-Klass–Yang-Zhang Hybrid is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. The Garman-Klass-Yang-Zhang estimator in a pane: the classic range-based variance with the squared close-to-open jump prepended, so overnight gaps are booked instead of dropped, averaged over 20 bars and annualized at 252 per year. A plain Garman-Klass comparison line and an overnight-share readout isolate gap-driven variance, with percentile expansion and compression alerts. - Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 25, 2026. - Access: free. - Concepts: [Garman-Klass–Yang-Zhang Hybrid](https://www.luxalgo.com/library/concept/garman-klass-yang-zhang-hybrid/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=it2qqp65ybd3ybasmbvn4pfl - Page: https://www.luxalgo.com/library/indicator/garman-klass-yang-zhang-hybrid/ **Garman-Klass–Yang-Zhang Hybrid** extends range-based volatility to the hours the market is closed: each bar's variance adds the squared overnight (close-to-open) jump to the classic high-low-and-body formula, and the window average is annualized into the line. As a build of the [Garman-Klass–Yang-Zhang hybrid](https://www.luxalgo.com/library/concept/garman-klass-yang-zhang-hybrid/), its signature is the gap-share read: plain Garman-Klass runs alongside, so the spread between the lines shows how much volatility arrives overnight, and the dashboard's Overnight Share gives its exact share of window variance. ## How to Trade the Garman-Klass–Yang-Zhang Hybrid? - **Compression**: the rank under the low threshold marks a quiet stretch, where quiet includes calm overnights, the kind that precedes expansion. - **Expansion**: the rank crossing over the high threshold confirms broadening movement. - **Overnight Share Rising**: the close-to-open term crossing your alert share of variance says gap risk is in charge. - **Line spread**: GKYZ jumping while the comparison line stays flat isolates a gap event from session churn. ## Garman-Klass–Yang-Zhang Hybrid Settings - **Window Length** (default 20): bars averaged; the overnight term adds information per bar, so short windows stabilize quickly. - **Annualize** (default enabled) with **Bars Per Year** (default 252): the comparability scaling. Intraday charts must count actual bars per year. - **Garman-Klass Comparison** (default enabled): the identical formula minus the overnight term. - **Overnight Share Alert Level %** (default 50): the share of window variance above which the gap-risk alert fires; 50 marks more variance arriving closed than open. - **Percentile Lookback** (default 100) with **High Percentile** (80), **Low Percentile** (20) and **Show Percentile Levels** (default disabled). - **Show Dashboard** (default enabled); colors and **Gradient Fill** are cosmetic. ## Frequently Asked Questions ### GKYZ or the full Yang-Zhang estimator? The [Yang-Zhang Estimator](https://www.luxalgo.com/library/indicator/yang-zhang-estimator/) combines overnight, open-to-close and Rogers-Satchell terms with drift-optimal weights; GKYZ is the simpler patch: Garman-Klass plus the squared gap. It reconciles cleanly with plain Garman-Klass, while Yang-Zhang is more complete when drift matters. ### What does the overnight share tell me? It is the close-to-open term's share of total window variance. Near zero, the instrument moves almost entirely within sessions; past 50, more of the measured risk arrives while you cannot trade it, grounds for wider overnight stops or smaller positions. ### Is it useful on 24-hour markets? Less so: with no session break the overnight term sits near zero and GKYZ collapses onto plain Garman-Klass. It earns its keep on stocks, session-break futures and anything that reprices on closed-market news. ## Related indicators - [Hot Zone Radar](https://www.luxalgo.com/library/indicator/hot-zone-radar/) (Volatility Percentile/rank): markdown at https://www.luxalgo.com/library/indicator/hot-zone-radar.md - [Volatility Signature Plot](https://www.luxalgo.com/library/indicator/volatility-signature-plot/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/volatility-signature-plot.md - [The Range Indicator](https://www.luxalgo.com/library/indicator/the-range-indicator/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/the-range-indicator.md - [Jump Detection](https://www.luxalgo.com/library/indicator/jump-detection/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/jump-detection.md - [Volatility of Volatility](https://www.luxalgo.com/library/indicator/volatility-of-volatility/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/volatility-of-volatility.md - [GARCH-family Clustering](https://www.luxalgo.com/library/indicator/garch-family-clustering/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/garch-family-clustering.md - [Kase Studies](https://www.luxalgo.com/library/indicator/kase-studies/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/kase-studies.md - [Yang-Zhang Estimator](https://www.luxalgo.com/library/indicator/yang-zhang-estimator/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/yang-zhang-estimator.md --- Source: https://www.luxalgo.com/library/indicator/garman-klass-yang-zhang-hybrid/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/