Three Bar Gap [DojiEmoji] for ThinkOrSwim

[samer800]

fair value gap / imbalance

Full information refer to below link - I add MTF option as well
https://www.tradingview.com/v/96ZstKf8/

#/ © DojiEmoji
#// This script is tailored towards experienced traders who prefer to view raw price charts during live execution.
#// It searches for a three-bar pattern of what is colloquially called "fair value gap", or "imbalance" and uses
#// a single line to plot the results. The goal is to display price in a way that is as simple as possible so that
#// chart readers who don't prefer to add indicators on their screen will still find this indicator as an
#// acceptable option to consider for.
#indicator("3 Bar Gap [DojiEmoji]", overlay=true)
# Converted and mod by Sam4Cok@Samer800 - 02/2023

input ShowCloud      = yes;
input UseChartTimeFrame = yes;
input ManualTimeFrame   = AggregationPeriod.HOUR;
input atr_Length = 20;     # "ATR Length"
input atr_multi = 0.65;    # "Multi"

def na = Double.NaN;
def last = isNaN(Close);

def hTF; def cTF; def lTF;
if UseChartTimeFrame {
    htf = high;
    ctf = close;
    ltf = low;
    } else {
    htf = high(Period=ManualTimeFrame);
    ctf = close(Period=ManualTimeFrame);
    ltf = low(Period=ManualTimeFrame);
}
#
script insert_gap {
input price_t_minustwo = high;
input price_t_zero = low;
    def pivot_upper = max(price_t_minustwo, price_t_zero);
    def pivot_lower = min(price_t_minustwo, price_t_zero);
    def pivot_mid = (pivot_upper+ pivot_lower)/2;
    def linecolor = if price_t_minustwo < price_t_zero then 1 else
                    if price_t_minustwo > price_t_zero then -1 else 0;
    plot mid   = pivot_mid;
    plot Color = linecolor;
}
def tr        = TrueRange(htf, ctf, ltf);
def nATR      = WildersAverage(tr, atr_Length);
def threshold = nATR * atr_multi;
def PivotUpMain = insert_gap(htf[2], ltf[0]).mid;
def PivotUpColo = insert_gap(htf[2], ltf[0]).Color;
def PivotUpThre = PivotUpMain + threshold;
def PivotDnMain = insert_gap(ltf[2], htf[0]).mid;
def PivotDnColo = insert_gap(ltf[2], htf[0]).Color;
def PivotDnThre = PivotDnMain - threshold;
def main_pivot;def linecolor; def PivUp; def PivDn;
def displacement_up = ltf[0] - htf[2];
def displacement_dn = htf[0] - ltf[2];


if AbsValue(displacement_up) > threshold and displacement_up > 0 {
    main_pivot = PivotUpMain;
    linecolor  = PivotUpColo;
    PivUp      = PivotUpThre;#main_pivot + threshold;
    PivDn      = PivDn[1];
    } else
if AbsValue(displacement_dn) > threshold and displacement_dn < 0 {
    main_pivot = PivotDnMain;
    linecolor  = PivotDnColo;
    PivUp      = PivUp[1];
    PivDn      = PivotDnThre;#main_pivot - threshold;
    } else {
    main_pivot = main_pivot[1];
    linecolor = linecolor[1];
    PivUp      = PivUp[1];
    PivDn      = PivDn[1];
}

def Pivot = if linecolor==0 or main_pivot!=main_pivot[1] or last then na else main_pivot;

def PivotUp = if linecolor<=0 or main_pivot!=main_pivot[1] or last then na else PivUp;

def PivotDn = if linecolor>=0 or main_pivot!=main_pivot[1] or last then na else PivDn;

plot PivotMid = Pivot[-1];
PivotMid.AssignValueColor(if linecolor>0 then Color.Green else Color.RED);

AddCloud(if ShowCloud then PivotUp[-1] else na, Pivot[-1], Color.DARK_GREEN, Color.DARK_RED);
AddCloud(if ShowCloud then PivotDn[-1] else na, Pivot[-1], Color.DARK_GREEN, Color.DARK_RED);


#---END CODE

 

[gdlesley]

Full information refer to below link - I add MTF option as well
https://www.tradingview.com/v/96ZstKf8/

#/ © DojiEmoji
#// This script is tailored towards experienced traders who prefer to view raw price charts during live execution.
#// It searches for a three-bar pattern of what is colloquially called "fair value gap", or "imbalance" and uses
#// a single line to plot the results. The goal is to display price in a way that is as simple as possible so that
#// chart readers who don't prefer to add indicators on their screen will still find this indicator as an
#// acceptable option to consider for.
#indicator("3 Bar Gap [DojiEmoji]", overlay=true)
# Converted and mod by Sam4Cok@Samer800 - 02/2023

input ShowCloud      = yes;
input UseChartTimeFrame = yes;
input ManualTimeFrame   = AggregationPeriod.HOUR;
input atr_Length = 20;     # "ATR Length"
input atr_multi = 0.65;    # "Multi"

def na = Double.NaN;
def last = isNaN(Close);

def hTF; def cTF; def lTF;
if UseChartTimeFrame {
    htf = high;
    ctf = close;
    ltf = low;
    } else {
    htf = high(Period=ManualTimeFrame);
    ctf = close(Period=ManualTimeFrame);
    ltf = low(Period=ManualTimeFrame);
}
#
script insert_gap {
input price_t_minustwo = high;
input price_t_zero = low;
    def pivot_upper = max(price_t_minustwo, price_t_zero);
    def pivot_lower = min(price_t_minustwo, price_t_zero);
    def pivot_mid = (pivot_upper+ pivot_lower)/2;
    def linecolor = if price_t_minustwo < price_t_zero then 1 else
                    if price_t_minustwo > price_t_zero then -1 else 0;
    plot mid   = pivot_mid;
    plot Color = linecolor;
}
def tr        = TrueRange(htf, ctf, ltf);
def nATR      = WildersAverage(tr, atr_Length);
def threshold = nATR * atr_multi;
def PivotUpMain = insert_gap(htf[2], ltf[0]).mid;
def PivotUpColo = insert_gap(htf[2], ltf[0]).Color;
def PivotUpThre = PivotUpMain + threshold;
def PivotDnMain = insert_gap(ltf[2], htf[0]).mid;
def PivotDnColo = insert_gap(ltf[2], htf[0]).Color;
def PivotDnThre = PivotDnMain - threshold;
def main_pivot;def linecolor; def PivUp; def PivDn;
def displacement_up = ltf[0] - htf[2];
def displacement_dn = htf[0] - ltf[2];


if AbsValue(displacement_up) > threshold and displacement_up > 0 {
    main_pivot = PivotUpMain;
    linecolor  = PivotUpColo;
    PivUp      = PivotUpThre;#main_pivot + threshold;
    PivDn      = PivDn[1];
    } else
if AbsValue(displacement_dn) > threshold and displacement_dn < 0 {
    main_pivot = PivotDnMain;
    linecolor  = PivotDnColo;
    PivUp      = PivUp[1];
    PivDn      = PivotDnThre;#main_pivot - threshold;
    } else {
    main_pivot = main_pivot[1];
    linecolor = linecolor[1];
    PivUp      = PivUp[1];
    PivDn      = PivDn[1];
}

def Pivot = if linecolor==0 or main_pivot!=main_pivot[1] or last then na else main_pivot;

def PivotUp = if linecolor<=0 or main_pivot!=main_pivot[1] or last then na else PivUp;

def PivotDn = if linecolor>=0 or main_pivot!=main_pivot[1] or last then na else PivDn;

plot PivotMid = Pivot[-1];
PivotMid.AssignValueColor(if linecolor>0 then Color.Green else Color.RED);

AddCloud(if ShowCloud then PivotUp[-1] else na, Pivot[-1], Color.DARK_GREEN, Color.DARK_RED);
AddCloud(if ShowCloud then PivotDn[-1] else na, Pivot[-1], Color.DARK_GREEN, Color.DARK_RED);


#---END CODE

Thanky you

 

[Chemmy]

This is awesome @samer800 , thank you for making this -- I love the simplicity and effectiveness here. One request though, is there any way to plot the bullish and bearish gaps separately? Currently they are plotting as one which is sometimes removing the FVG from continuing when a gap in the opposite direction is shown:

I'm currently trying to make that change but I imagine you'd probably be able to solve this much quicker than me!

 

[samer800]

This is awesome @samer800 , thank you for making this -- I love the simplicity and effectiveness here. One request though, is there any way to plot the bullish and bearish gaps separately? Currently they are plotting as one which is sometimes removing the FVG from continuing when a gap in the opposite direction is shown:

I'm currently trying to make that change but I imagine you'd probably be able to solve this much quicker than me!

try the below. I added extend line option but without cloud so done clutter the chart.

#/ © DojiEmoji
#// This script is tailored towards experienced traders who prefer to view raw price charts during live execution.
#// It searches for a three-bar pattern of what is colloquially called "fair value gap", or "imbalance" and uses
#// a single line to plot the results. The goal is to display price in a way that is as simple as possible so that
#// chart readers who don't prefer to add indicators on their screen will still find this indicator as an
#// acceptable option to consider for.
#indicator("3 Bar Gap [DojiEmoji]", overlay=true)
# Converted and mod by Sam4Cok@Samer800 - 02/2023
# Added extend line option reques from www.UseThinkScript.com member

input ShowCloud      = yes;
input ExtendLines    = yes;
input UseChartTimeFrame = yes;
input ManualTimeFrame   = AggregationPeriod.HOUR;
input atr_Length = 20;     # "ATR Length"
input atr_multi = 0.65;    # "Multi"

def na = Double.NaN;
def last = isNaN(Close);

def hTF; def cTF; def lTF;
if UseChartTimeFrame {
    htf = high;
    ctf = close;
    ltf = low;
    } else {
    htf = high(Period=ManualTimeFrame);
    ctf = close(Period=ManualTimeFrame);
    ltf = low(Period=ManualTimeFrame);
}
#
script insert_gap {
input price_t_minustwo = high;
input price_t_zero = low;
    def pivot_upper = max(price_t_minustwo, price_t_zero);
    def pivot_lower = min(price_t_minustwo, price_t_zero);
    def pivot_mid = (pivot_upper+ pivot_lower)/2;
    def linecolor = if price_t_minustwo < price_t_zero then 1 else
                    if price_t_minustwo > price_t_zero then -1 else 0;
    plot mid   = pivot_mid;
    plot Color = linecolor;
}
def tr        = TrueRange(htf, ctf, ltf);
def nATR      = WildersAverage(tr, atr_Length);
def threshold = nATR * atr_multi;
def PivotUpMain = insert_gap(htf[2], ltf[0]).mid;
def PivotUpColo = insert_gap(htf[2], ltf[0]).Color;
def PivotUpThre = PivotUpMain + threshold;
def PivotDnMain = insert_gap(ltf[2], htf[0]).mid;
def PivotDnColo = insert_gap(ltf[2], htf[0]).Color;
def PivotDnThre = PivotDnMain - threshold;
def displacement_up = ltf[0] - htf[2];
def displacement_dn = htf[0] - ltf[2];

def main_pivot;def linecolor; def PivUp; def PivDn;
if AbsValue(displacement_up) > threshold and displacement_up > 0 {
    main_pivot = PivotUpMain;
    linecolor  = PivotUpColo;
    PivUp      = PivotUpThre;
    PivDn      = PivDn[1];
    } else
if AbsValue(displacement_dn) > threshold and displacement_dn < 0 {
    main_pivot = PivotDnMain;
    linecolor  = PivotDnColo;
    PivUp      = PivUp[1];
    PivDn      = PivotDnThre;
    } else {
    main_pivot = main_pivot[1];
    linecolor = linecolor[1];
    PivUp      = PivUp[1];
    PivDn      = PivDn[1];
}

def Pivot = if linecolor==0 or main_pivot!=main_pivot[1] or last then na else main_pivot;
def PivotUp = if linecolor<=0 or main_pivot!=main_pivot[1] or last then na else PivUp;
def PivotDn = if linecolor>=0 or main_pivot!=main_pivot[1] or last then na else PivDn;

plot PivotMid = Pivot[-1];
PivotMid.AssignValueColor(if linecolor>0 then Color.Green else Color.RED);

AddCloud(if ShowCloud then PivotUp[-1] else na, Pivot[-1], Color.DARK_GREEN, Color.DARK_RED);
AddCloud(if ShowCloud then PivotDn[-1] else na, Pivot[-1], Color.DARK_GREEN, Color.DARK_RED);

#-- Extended Lines
def mainpvt; def mainpvt1;
if  AbsValue(displacement_up) > threshold and displacement_up > 0 {
    mainpvt = PivotUpMain;
    } else {
    mainpvt = mainpvt[1];
}
if ExtendLines and AbsValue(displacement_dn) > threshold and displacement_dn < 0 {
    mainpvt1 = PivotDnMain;
    } else {
    mainpvt1 = mainpvt1[1];
}
#--- Up Lines
def PivotGr = if !ExtendLines or linecolor==0 or mainpvt!=mainpvt[1] or last then na else mainpvt;

plot PivotGrMid = PivotGr[-1];
PivotGrMid.SetDefaultColor(Color.Green);

#-- Dn Lines
def PivotRe = if !ExtendLines or linecolor==0 or mainpvt1!=mainpvt1[1] or last then na else mainpvt1;

plot PivotReMid = PivotRe[-1];
PivotReMid.SetDefaultColor(Color.RED);



#---END CODE

 

[Chemmy]

try the below. I added extend line option but without cloud so done clutter the chart.

#/ © DojiEmoji
#// This script is tailored towards experienced traders who prefer to view raw price charts during live execution.
#// It searches for a three-bar pattern of what is colloquially called "fair value gap", or "imbalance" and uses
#// a single line to plot the results. The goal is to display price in a way that is as simple as possible so that
#// chart readers who don't prefer to add indicators on their screen will still find this indicator as an
#// acceptable option to consider for.
#indicator("3 Bar Gap [DojiEmoji]", overlay=true)
# Converted and mod by Sam4Cok@Samer800 - 02/2023
# Added extend line option reques from www.UseThinkScript.com member

input ShowCloud      = yes;
input ExtendLines    = yes;
input UseChartTimeFrame = yes;
input ManualTimeFrame   = AggregationPeriod.HOUR;
input atr_Length = 20;     # "ATR Length"
input atr_multi = 0.65;    # "Multi"

def na = Double.NaN;
def last = isNaN(Close);

def hTF; def cTF; def lTF;
if UseChartTimeFrame {
    htf = high;
    ctf = close;
    ltf = low;
    } else {
    htf = high(Period=ManualTimeFrame);
    ctf = close(Period=ManualTimeFrame);
    ltf = low(Period=ManualTimeFrame);
}
#
script insert_gap {
input price_t_minustwo = high;
input price_t_zero = low;
    def pivot_upper = max(price_t_minustwo, price_t_zero);
    def pivot_lower = min(price_t_minustwo, price_t_zero);
    def pivot_mid = (pivot_upper+ pivot_lower)/2;
    def linecolor = if price_t_minustwo < price_t_zero then 1 else
                    if price_t_minustwo > price_t_zero then -1 else 0;
    plot mid   = pivot_mid;
    plot Color = linecolor;
}
def tr        = TrueRange(htf, ctf, ltf);
def nATR      = WildersAverage(tr, atr_Length);
def threshold = nATR * atr_multi;
def PivotUpMain = insert_gap(htf[2], ltf[0]).mid;
def PivotUpColo = insert_gap(htf[2], ltf[0]).Color;
def PivotUpThre = PivotUpMain + threshold;
def PivotDnMain = insert_gap(ltf[2], htf[0]).mid;
def PivotDnColo = insert_gap(ltf[2], htf[0]).Color;
def PivotDnThre = PivotDnMain - threshold;
def displacement_up = ltf[0] - htf[2];
def displacement_dn = htf[0] - ltf[2];

def main_pivot;def linecolor; def PivUp; def PivDn;
if AbsValue(displacement_up) > threshold and displacement_up > 0 {
    main_pivot = PivotUpMain;
    linecolor  = PivotUpColo;
    PivUp      = PivotUpThre;
    PivDn      = PivDn[1];
    } else
if AbsValue(displacement_dn) > threshold and displacement_dn < 0 {
    main_pivot = PivotDnMain;
    linecolor  = PivotDnColo;
    PivUp      = PivUp[1];
    PivDn      = PivotDnThre;
    } else {
    main_pivot = main_pivot[1];
    linecolor = linecolor[1];
    PivUp      = PivUp[1];
    PivDn      = PivDn[1];
}

def Pivot = if linecolor==0 or main_pivot!=main_pivot[1] or last then na else main_pivot;
def PivotUp = if linecolor<=0 or main_pivot!=main_pivot[1] or last then na else PivUp;
def PivotDn = if linecolor>=0 or main_pivot!=main_pivot[1] or last then na else PivDn;

plot PivotMid = Pivot[-1];
PivotMid.AssignValueColor(if linecolor>0 then Color.Green else Color.RED);

AddCloud(if ShowCloud then PivotUp[-1] else na, Pivot[-1], Color.DARK_GREEN, Color.DARK_RED);
AddCloud(if ShowCloud then PivotDn[-1] else na, Pivot[-1], Color.DARK_GREEN, Color.DARK_RED);

#-- Extended Lines
def mainpvt; def mainpvt1;
if  AbsValue(displacement_up) > threshold and displacement_up > 0 {
    mainpvt = PivotUpMain;
    } else {
    mainpvt = mainpvt[1];
}
if ExtendLines and AbsValue(displacement_dn) > threshold and displacement_dn < 0 {
    mainpvt1 = PivotDnMain;
    } else {
    mainpvt1 = mainpvt1[1];
}
#--- Up Lines
def PivotGr = if !ExtendLines or linecolor==0 or mainpvt!=mainpvt[1] or last then na else mainpvt;

plot PivotGrMid = PivotGr[-1];
PivotGrMid.SetDefaultColor(Color.Green);

#-- Dn Lines
def PivotRe = if !ExtendLines or linecolor==0 or mainpvt1!=mainpvt1[1] or last then na else mainpvt1;

plot PivotReMid = PivotRe[-1];
PivotReMid.SetDefaultColor(Color.RED);



#---END CODE

Thank you, this is exactly what I was looking for! And thanks for getting this done so quickly.

 

[Juno (Best Day EVER)]

try the below. I added extend line option but without cloud so done clutter the chart.

#/ © DojiEmoji
#// This script is tailored towards experienced traders who prefer to view raw price charts during live execution.
#// It searches for a three-bar pattern of what is colloquially called "fair value gap", or "imbalance" and uses
#// a single line to plot the results. The goal is to display price in a way that is as simple as possible so that
#// chart readers who don't prefer to add indicators on their screen will still find this indicator as an
#// acceptable option to consider for.
#indicator("3 Bar Gap [DojiEmoji]", overlay=true)
# Converted and mod by Sam4Cok@Samer800 - 02/2023
# Added extend line option reques from www.UseThinkScript.com member

input ShowCloud      = yes;
input ExtendLines    = yes;
input UseChartTimeFrame = yes;
input ManualTimeFrame   = AggregationPeriod.HOUR;
input atr_Length = 20;     # "ATR Length"
input atr_multi = 0.65;    # "Multi"

def na = Double.NaN;
def last = isNaN(Close);

def hTF; def cTF; def lTF;
if UseChartTimeFrame {
    htf = high;
    ctf = close;
    ltf = low;
    } else {
    htf = high(Period=ManualTimeFrame);
    ctf = close(Period=ManualTimeFrame);
    ltf = low(Period=ManualTimeFrame);
}
#
script insert_gap {
input price_t_minustwo = high;
input price_t_zero = low;
    def pivot_upper = max(price_t_minustwo, price_t_zero);
    def pivot_lower = min(price_t_minustwo, price_t_zero);
    def pivot_mid = (pivot_upper+ pivot_lower)/2;
    def linecolor = if price_t_minustwo < price_t_zero then 1 else
                    if price_t_minustwo > price_t_zero then -1 else 0;
    plot mid   = pivot_mid;
    plot Color = linecolor;
}
def tr        = TrueRange(htf, ctf, ltf);
def nATR      = WildersAverage(tr, atr_Length);
def threshold = nATR * atr_multi;
def PivotUpMain = insert_gap(htf[2], ltf[0]).mid;
def PivotUpColo = insert_gap(htf[2], ltf[0]).Color;
def PivotUpThre = PivotUpMain + threshold;
def PivotDnMain = insert_gap(ltf[2], htf[0]).mid;
def PivotDnColo = insert_gap(ltf[2], htf[0]).Color;
def PivotDnThre = PivotDnMain - threshold;
def displacement_up = ltf[0] - htf[2];
def displacement_dn = htf[0] - ltf[2];

def main_pivot;def linecolor; def PivUp; def PivDn;
if AbsValue(displacement_up) > threshold and displacement_up > 0 {
    main_pivot = PivotUpMain;
    linecolor  = PivotUpColo;
    PivUp      = PivotUpThre;
    PivDn      = PivDn[1];
    } else
if AbsValue(displacement_dn) > threshold and displacement_dn < 0 {
    main_pivot = PivotDnMain;
    linecolor  = PivotDnColo;
    PivUp      = PivUp[1];
    PivDn      = PivotDnThre;
    } else {
    main_pivot = main_pivot[1];
    linecolor = linecolor[1];
    PivUp      = PivUp[1];
    PivDn      = PivDn[1];
}

def Pivot = if linecolor==0 or main_pivot!=main_pivot[1] or last then na else main_pivot;
def PivotUp = if linecolor<=0 or main_pivot!=main_pivot[1] or last then na else PivUp;
def PivotDn = if linecolor>=0 or main_pivot!=main_pivot[1] or last then na else PivDn;

plot PivotMid = Pivot[-1];
PivotMid.AssignValueColor(if linecolor>0 then Color.Green else Color.RED);

AddCloud(if ShowCloud then PivotUp[-1] else na, Pivot[-1], Color.DARK_GREEN, Color.DARK_RED);
AddCloud(if ShowCloud then PivotDn[-1] else na, Pivot[-1], Color.DARK_GREEN, Color.DARK_RED);

#-- Extended Lines
def mainpvt; def mainpvt1;
if  AbsValue(displacement_up) > threshold and displacement_up > 0 {
    mainpvt = PivotUpMain;
    } else {
    mainpvt = mainpvt[1];
}
if ExtendLines and AbsValue(displacement_dn) > threshold and displacement_dn < 0 {
    mainpvt1 = PivotDnMain;
    } else {
    mainpvt1 = mainpvt1[1];
}
#--- Up Lines
def PivotGr = if !ExtendLines or linecolor==0 or mainpvt!=mainpvt[1] or last then na else mainpvt;

plot PivotGrMid = PivotGr[-1];
PivotGrMid.SetDefaultColor(Color.Green);

#-- Dn Lines
def PivotRe = if !ExtendLines or linecolor==0 or mainpvt1!=mainpvt1[1] or last then na else mainpvt1;

plot PivotReMid = PivotRe[-1];
PivotReMid.SetDefaultColor(Color.RED);



#---END CODE

i love what you share. thank you!

 

[acom]

@Juno (Best Day EVER) @Chemmy Can you kindly share your trading ideas using the above mentioned indicator? What time frame to use and entry criteria? Thanks.

 

[Chemmy]

Sure! So there are two main ways I like to play gaps like the ones in this study shows. I trade on the 3 minute, and I use the hourly time frame on this indicator since gaps are more significant on higher time frames.

The first way I like to use this is as a target for overextended plays, since gaps tend to get tested/filled, especially when market sentiment is opposite the gap. Here's an example on TSLA:

See how price game back up to test the gap left by the premarket action? I took all of my levels off this chart for clarity but with extra confluence, you could have definitely played the reversal on TSLA all the way back up.

The second way to play this, the way that I prefer as trend trader, is continuation -- a lot of the time when gaps get tested, they actually go back and continue the way they were originally trending. Here's an example on SPY:

You can see how SPY came down to test the zone, which you could've totally played the downside there, but when the market is trending strong in one direction I much prefer to take trades in that same direction. So when price came down, a great trade would be to take a long off of the retest there.

 

[acom]

Thanks @Chemmy . Thats very informative

 

[acom]

@Chemmy What are your settings? Tesla chart is showing different lining pattern on my screen with 1hr indicator and 3 min timeframe. Do you mind sharing your setup?

 

[Chemmy]

@Chemmy What are your settings? Tesla chart is showing different lining pattern on my screen with 1hr indicator and 3 min timeframe. Do you mind sharing your setup?

Oh, sorry that one screenshot of TSLA was from 02/13/22, not today. If you scroll back on a 3min chart you should see it, but please let me know if you still don't. Sorry, I can't share that specific chart because there's some propriety stuff on there though.

 

[acom]

Oh, sorry that one screenshot of TSLA was from 02/13/22, not today. If you scroll back on a 3min chart you should see it, but please let me know if you still don't. Sorry, I can't share that specific chart because there's some propriety stuff on there though.

I am looking at premarket levels on Tesla 02/13 and can see three red bars (around 198, 196 and 194 - premarket levels) extending only partially. What is atr length and atr multi level on your indicator?

 

[Chemmy]

I am looking at premarket levels on Tesla 02/13 and can see three red bars (around 198, 196 and 194 - premarket levels) extending only partially. What is atr length and atr multi level on your indicator?

Can you be sure that "use chart time" is set to No on your indicator? That's the only thing I changed from the default-- you want to be sure that's turned off so that the study uses the higher time frame value. When I set it to Yes, I see the three smaller bars that you mentioned.

 

[acom]

I am looking at premarket levels on Tesla 02/13 and can see three red bars (around 198, 196 and 194 - premarket levels) extending only partially. What is atr length and atr multi level on you

Can you be sure that "use chart time" is set to No on your indicator? That's the only thing I changed from the default-- you want to be sure that's turned off so that the study uses the higher time frame value. When I set it to Yes, I see the three smaller bars that you mentioned.

r indicator?

It worked. Thanks.

 

[acom]

@Chemmy Very tricky situation for me and would like input from you - how you can postulate if price action will bounce or pierce imbalance using 3 min timeframe/1hr indicator?

 

[Chemmy]

@Chemmy Very tricky situation for me and would like input from you - how you can postulate if price action will bounce or pierce imbalance using 3 min timeframe/1hr indicator?

Well, generally my advice would be to not try and use this study in a predictive manner -- you won't want to take calls the second price falls back into a bullish imbalance, for instance. You should definitely focus more on using this as a zone of reference, since obviously this is not an indicator that gives "signals" to imply buying or selling.

As for whether or not it will bounce or pierce through, I generally look left on my chart to see whether or not there are potential levels of price action that could act as support or resistance between the creation of the gap and the current time. In the SPY example that I showed before, you can see that price bounced inside of that zone once already, which could indicate a local area of support. So when price fell back into the zone again later in the day, and held above that support (411.12 or so) it was a solid enough risk/reward for me to play continuation again. Also, it's not in that screenshot but that pullback also fell right back into VWAP, which was additional confluence.

Does that make sense? Basically, if there are clear levels that are confluence with these zones, it gives you the best odds of a bounce.

 

[acom]

Well, generally my advice would be to not try and use this study in a predictive manner -- you won't want to take calls the second price falls back into a bullish imbalance, for instance. You should definitely focus more on using this as a zone of reference, since obviously this is not an indicator that gives "signals" to imply buying or selling.

As for whether or not it will bounce or pierce through, I generally look left on my chart to see whether or not there are potential levels of price action that could act as support or resistance between the creation of the gap and the current time. In the SPY example that I showed before, you can see that price bounced inside of that zone once already, which could indicate a local area of support. So when price fell back into the zone again later in the day, and held above that support (411.12 or so) it was a solid enough risk/reward for me to play continuation again. Also, it's not in that screenshot but that pullback also fell right back into VWAP, which was additional confluence.

Does that make sense? Basically, if there are clear levels that are confluence with these zones, it gives you the best odds of a bounce.

Yes it does make a lot of sense. Thanks again.