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Rising & Falling Window Signals

By LuxAlgoAug 20, 2024

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Rising & Falling Window Signals detects the window formations from Steve Nison's candlestick work — a common gap left when the wicks of two successive candles fail to overlap — and converts each one into a managed support-and-resistance zone. A Rising Window carries bullish momentum, a Falling Window bearish momentum, and once formed, the gap becomes a level where returning price tends to react.

How to Trade the Rising & Falling Window Signals?

  • Rising Window retest: price returning into a bullish window often finds support, strongest at the zone's opposite extreme.
  • Falling Window retest: the bearish mirror — expect resistance, again anchored by the far extreme.
  • Wide windows: on broader zones the midpoint carries the most weight, so keep midlines visible when gaps run large.
  • Zone break: once price trades cleanly through a window — the gap fill completing — the zone stops offering support or resistance.

Three signal types track how price tests a zone. Regular fires when price pushes beyond an unmitigated zone's boundary; Engulfing triggers on an engulfing candle whose wicks contact the zone; Wick fires when a candle closes beyond the zone while its wick probes inside. Each captures a different flavor of acceptance or rejection.

Rising & Falling Window Signals Settings

  • Maximum Live Zone Length: lifetime cap on a zone's extension when it goes unmitigated.
  • Minimum Inactive Zone Length: hides short-lived zones that never earned relevance.
  • Extend Historical Zones on Touch: re-extends an old unmitigated zone to the current bar when price revisits it.
  • Minimum Width / Maximum Width: ATR-multiplier filters that discard windows too narrow or too wide to trade.
  • Show Midlines: toggles zone midpoints.
  • Show Zone Tests / Test Type / Signal Size: enable test signals, pick the detection method, and size the labels.

Frequently Asked Questions

What exactly creates a window?

Two consecutive candles whose wicks never overlap — the untraded space between them is the window. The width filters then decide whether that gap is meaningful enough to track as a zone.

Is there a related tool for trading gap fills?

Yes — Gap Fill Breakouts centers on the fill event itself, while this indicator treats the window as a living support/resistance zone. The two views pair naturally when gaps drive your playbook.

How do I get the Rising & Falling Window Signals?

It is free in the LuxAlgo Library — add it to your chart without any paid plan.

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