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BobBasic

Efficiency Gaps

BobBasic  
Candlestick analysis supportandresistancezones
88
2
candlestickanalysis supportandresistancezones
Paints inefficient candles ( where candles on both sides of a candle don't meet in the middle. )
Average True Range period and multiplier from 0.01 to 1 can be used to filter out small gaps.

Price is likely to return to these areas and they are possible support / resistance levels.
Combine with volume profile to detect low volume areas.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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