Opening Range Gaps

The Opening Range Gaps indicator identifies and visualizes the price discrepancy between the closing price of a previous trading session and the opening price of a new session. It provides traders with clear visual zones (gaps) including midpoints and quartiles, helping to identify potential support, resistance, or momentum signals arising from overnight or weekend price action.

Usage

The tool is primarily used to track gaps between "Real Trading Hours" (RTH) sessions. A gap is drawn as a box from the previous close to the current open.

• Gap Visualization: The box color is determined by the gap direction (green for gaps up, red for gaps down).
• Internal Levels: Within each gap box, a solid line marks the midpoint (50% level), while dashed lines indicate the upper and lower quartiles (25% and 75% levels).
• Session Management: Users can define specific "Gap Sessions" to fit different markets. For instance, U.S. index futures traders might set the window from 16:00 to 09:30 EST.
• Historical Tracking: Use the "Extend Boxes" and "Keep Last" settings to maintain a historical record of recent gaps on the chart for context.

Details

The indicator calculates gaps based on a user-defined time window. When the defined session starts, the tool captures the "start price" (previous close). Once the session ends and the new open price is validated, the indicator draws the gap box.

A key technical feature is the Timeframe Limit. Because specific session closes (like 16:15) might not be visible on higher timeframes (like 1H), this setting ensures the indicator only renders on resolutions where the data is granular enough to be accurate, preventing calculation errors.

Settings

• Gap Session: Defines the time window (in "HHMM-HHMM" format) used to calculate the gap between sessions.
• Gap Colors: Customizes the background and border colors for bullish and bearish gaps.
• Show Session Delineations: Toggles vertical dotted lines that mark the beginning and end of the gap calculation period.
• Track Start Price: Displays a visual line tracking the initial price point (previous close) until the new session opens.
• Extend Boxes: Extends the gap boxes indefinitely to the right of the chart.
• Keep Last: Limits the number of historical gaps displayed on the chart to maintain performance and visual clarity.
• Timeframe Limit: Restricts the indicator to only display on timeframes less than or equal to the specified value.

FAQ

How do I use this for different time zones?

The "Gap Session" input follows the exchange time. You can adjust the session string (e.g., "1600-0930") to match the specific market hours you are trading.

Why aren't the gaps appearing on my daily chart?

Check the "Timeframe Limit" setting. If the chart timeframe is higher than the limit (default 30m), the indicator will not draw to prevent resolution-related inaccuracies.

How can I access Opening Range Gaps?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.