Using Daily Gap Levels to Map Intraday Price Targets

Summary

The document describes a chart indicator for tracking open-to-close gaps across the current day and the prior three sessions. It marks the previous session’s close as a potential gap level, checks whether later session ranges have crossed earlier gap levels, and draws still-unfilled gaps on an intraday chart. The author presents gaps as possible clues to market direction, especially near support or resistance and after extended price moves, with the DAX singled out as a market of interest.

The indicator allows custom trading hours because the author believes the selected cash-market open and close better represent the gap reference points than full-day chart values. Users in other time zones must adjust those session times. The text offers no performance testing or evidence that gaps reliably fill; deciding how likely a gap is to close remains a discretionary judgment. Treat the plotted levels as context for analysis, not as a validated trading signal.

Key ideas

• The indicator plots current and recent session gaps using chosen open and close times.
• It tracks whether subsequent session highs or lows have reached earlier gap levels.
• The author views gaps as potential directional context near support, resistance, or extended conditions.
• Custom trading hours and time-zone adjustments affect which prices define a gap.
• The document supplies no statistical evidence that the marked gaps predict direction or fill.

Tags

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