Identify Gap-Up Pattern

[shakib3585]

Hello All,

I am requesting a ThinkScript code to

• identify a candle where the low of the candle two positions ahead has a gap up from the high of the current candle.
• The identified candle should be marked with a downward arrow, and
• this script should be applicable to any aggregation period.

I have attached an image showing that candle 3 has a "low" price value that is higher than the "high" price value of candle 1. Also, they have a "gap" between them. If this condition is met, I would like to request a script that places an arrow pointing to candle 1, which has a "high" price value lower than and gapped from the "low" price value of the candle positioned two candles ahead (candle 3). This should be applicable at any aggregation period

Thank you in advance

 

[halcyonguy]

Hello All,

I am requesting a ThinkScript code to

• identify a candle where the low of the candle two positions ahead has a gap up from the high of the current candle.
• The identified candle should be marked with a downward arrow, and
• this script should be applicable to any aggregation period.

I have attached an image showing that candle 3 has a "low" price value that is higher than the "high" price value of candle 1. Also, they have a "gap" between them. If this condition is met, I would like to request a script that places an arrow pointing to candle 1, which has a "high" price value lower than and gapped from the "low" price value of the candle positioned two candles ahead (candle 3). This should be applicable at any aggregation period


Thank you in advance

# gap_future_xbars
#https://usethinkscript.com/threads/identify-gap-up-pattern.18790/
#Identify Gap-Up Pattern
def na = double.nan;
def bn = barnumber();

input gap_future_bars = 2;

def isgap = if isnan(getvalue(low, -gap_future_bars)) then 0
 else if getvalue(low, -gap_future_bars) > high then 1
 else 0;

def y = 1.0004;
plot arrow = if isgap then high * y else na;
arrow.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
arrow.SetDefaultColor(Color.green);
arrow.setlineweight(3);
arrow.hidebubble();
#

 

[shakib3585]

# gap_future_xbars
#https://usethinkscript.com/threads/identify-gap-up-pattern.18790/
#Identify Gap-Up Pattern
def na = double.nan;
def bn = barnumber();

input gap_future_bars = 2;

def isgap = if isnan(getvalue(low, -gap_future_bars)) then 0
 else if getvalue(low, -gap_future_bars) > high then 1
 else 0;

def y = 1.0004;
plot arrow = if isgap then high * y else na;
arrow.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
arrow.SetDefaultColor(Color.green);
arrow.setlineweight(3);
arrow.hidebubble();
#

Thanks much, @halcyonguy. Two more requests, please.

1) Can you please plot a green cloud within the "gap" to represent a "bullish" sentiment?

2) Using the same method, but if there's a downward "gap" ,could you color the cloud red to indicate a "bearish" sentiment?

Thank you so much

 

[halcyonguy]

Thanks much, @halcyonguy. Two more requests, please.

1) Can you please plot a green cloud within the "gap" to represent a "bullish" sentiment?

2) Using the same method, but if there's a downward "gap" ,could you color the cloud red to indicate a "bearish" sentiment?

Thank you so much

1 - yes
2 - yes
but , when programming, you have to think about worst cases.
what if there are 3 up gaps in a row? just drawing lines and clouds , on each bar the lines would be shifted up to the next gap values.
how do you draw multiple, overlapping horizontal lines, spanning 3+ bars?
you have to keep track of a lot of variables
..
working on something
in the meantime, think about you next questions

 

[halcyonguy]

The author states:

The reason I am going for the gaps between three bars only is because I saw the strategy "The Fair Value Gap" theory and I found it helpful. So, I wanted to see how well it works for trading. Thank you so much for your precious time!

here you go
add down gap signals
i set the offset to be 2, so it looks at 3 bar groups and checks for a gap between the 1st and 3rd bars.
add horizontal lines and clouds, in the gap areas.
(count gaps and draw with multiple plots, so the clouds of adjacent gaps don't interact)
changed the arrows to point in the direction of gaps. they appear on 1st bar.
can turn arrows off

https://usethinkscript.com/threads/identify-gap-up-pattern-for-thinkorswim.20299/