CazaGaps Measures Opening Gaps and Close-to-Open Balance

Summary

CazaGaps is presented as an analysis tool for identifying and measuring upward and downward opening gaps in an index or other instrument. It marks a positive gap when the open is above both the previous close and previous high, and a negative gap when the open is below both the previous close and previous low. Gap force records the opening price’s difference from the prior close. The indicator also calculates the close-to-open difference for each session and sums that series over a configurable number of sessions, described as 20 by default, to show a cumulative balance from buying at the close and selling at the next open.

The code scales the gap marker using half the larger absolute extreme of the balance over a 90-session window, apparently to make the marker visible relative to the balance series. The page explains the indicator’s outputs but supplies no chart examples, performance evidence, or guidance on using them as entry signals. Its cumulative balance is a simplified price-difference measure and does not account for costs or execution conditions.

Key ideas

• An upward gap is marked when the open exceeds both the previous close and high, while a downward gap is marked when it falls below both the previous close and low.
• Gap force measures the difference between the open and previous close.
• The close-to-open series tracks each session’s price difference regardless of whether a defined gap occurred.
• A rolling sum estimates the cumulative result of buying at the close and selling at the next open.
• The indicator is described as an analysis aid and has no documented performance validation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.