Gap & Reverse Up (Indicator)
Input Information
| Name | Expression | Default | Description |
| NumDays | Numeric | 3 | Number of days in the price extension (defined as a sharp, multiple-day move). |
| MinConsolIndex | Numeric | 2.25 | This input should be in the 1-to-NumDays range; the larger the number, the more extended the price. |
| FinalRangeFactor | Numeric | 1 | This factor ensures that the final day's move is good-sized. Suggested Value: 1 |
| GapSizeFactor | Numeric | .2 | This factor is used to ensure that the gap is large, greater than the previous day's true range times the GapSizeFactor. |
| AlertColor | Numeric | Yellow | Color used to display alert. |
| ColorBars | Numeric | 5 | Number of bars for which the alert color will be displayed. |
| ColorScheme | Numeric | 2 | 0 = no coloring; 1 = color text in cell; 2 = color cell |
Market Synopsis
A gap-and-reverse situation occurs when the price starts out very strong today, with a large opening gap, but cannot sustain the move and starts fading, signaling an entry opportunity as it pulls back into yesterday's range. For added punch, this indicator monitors a security for such reversal opportunities only on days immediately following each price-extension period, since the "rubber-band" pullback effect on such days can be especially powerful.
The indicator will trigger an alert the first time a security meets the reversal conditions during the day, which is when a down price extension period (a price extension is a strong, multiple day move) meets the Setup and Trigger conditions for the Gap & Reverse Up pattern, if this happens in real time. "Large gap" and "price-extension" are fully user-configurable.
This indicator is designed for intraday data interval.
Plot Information
| Number | Name | Default Color | Description |
| Plot1 | DnExt | White | Continuous display of downward price extension status - true or BLANK - for the preceding NumDays period. Will stay constant for the entire current day. |
| Plot2 | Up-setup | White | If DnExt is true, this column displays the setup status - true or false - for the Gap & Reverse Up criteria. |
Note The plot lines will display only for new bars that are created after applying the indicator.