Use only on Daily charts!!
When average AH moves are consistent with average daytime moves it tends to indicate a trend. The phenomenon is not obvious on a day to day basis but is easy to see with the smoothed changes.
Blue is smoothed daytime change and black is smoothed AH gap. The length is how many periods back to start the differentiation between AH and daytime.
Pink background shows BOTH smoothed AH and daytime changes are falling.
Lime background indicates both are rising.
When used on NYA with parameters shown the indicator give warnings with high specificity and reliability for the broader
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.
study(shorttitle="AHvsID1", title="AHvsID1", overlay=true) // //Works only on DAILY CHARTS //Aqua line is intraday contribution //Black line is overnight gap //Length: The reference date at which daytime and AH start at equality. length = input(20, "Length", minval=1) smooth = input(40, "SMA",minval=1) src = close sro = open src1 = src intrad=src-sro co=cum(intrad) AH=sro-src1 oc1=cum(AH) summ=co+oc1 offst1=co[length]-close[length] offst2=oc1[length]-close[length] IDC=sma(co-offst1,smooth) AHC=sma(oc1-offst2,smooth) plot(IDC, color=aqua,linewidth=3) plot(AHC, color=black, linewidth=3) bgcolor(change(IDC) < 0 and change(AHC) < 0 ? fuchsia : change(IDC) > 0 and change(AHC) > 0 ? lime : white, transp=90)