Price Gap Histogram with Size Filtering

Summary

The document describes a price gap indicator that displays gaps as a histogram. It assigns red bars to upward gaps, which it suggests may fill downward, and blue bars to downward gaps, which it suggests may fill upward. The proposed gap-filling direction is presented as an interpretation of the indicator; the text provides no trading rules for entries, exits, or position sizing.

A size filter uses a configurable threshold: when a positive threshold is set, a reference line appears in a separate window and gaps below that line are colored gray. The examples show the indicator configured on one-minute and daily charts with different threshold values. They illustrate display settings rather than measured results, and no backtest or evidence of gap-fill rates is supplied. The document does not specify how gaps are defined, how the threshold scales across instruments or timeframes, or how transaction costs and risk should be handled, so the color signals alone do not establish a reliable strategy.

Key ideas

• The indicator displays price gaps as histogram bars.
• Upward gaps are shown in red and are described as candidates to fill downward.
• Downward gaps are shown in blue and are described as candidates to fill upward.
• A positive size threshold adds a reference line and grays out smaller gaps.
• The examples demonstrate settings across timeframes, not strategy performance.

Tags

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