New Week Opening Gap (NWOG) and New Day Opening Gap (NDOG) are areas on the chart where price tend to react to and has the potential of moving from one gap to the next. These gaps can act as support and resistance zones where price can bounce of, or go through and retest. Areas of interest are the high, low, the Consequent Encroachment (C.E.), which is the middle between high and low of each gap.
Event Horizon is the 50% distance between two NWOGs and price tend to react to, and could act as Premium/ Discount between two NWOGs.
New Week Opening Gap (NWOG) The difference between Friday close, and Sunday open. Consequent Encroachment (C.E.) is the area between two NWOGs.
Settings NWOG - The Colors in the form of Current/Previous and line style for NWOG - Background color to use for Current/Previous - Number of NWOGs to use by the indicator (ICT recommends using minimum of 5) - Extend Configuration: -- Always Extend all NWOGs -- Above and below only Shows the immediate two NWOGs that are above and below current price. These two NWOGs are recalculated as price moves -- Any that is near current price Any NWOG that is near the current price, this can result in multiple NWOGs being displayed, with some overlapping - Event Horizon only applicable when using the "Above and below only settings" -- Show Date label and type of gap
New Day Opening Gap (NDOG) The difference between Yesterday's close and Today's open.
Settings NDOG - The Colors in the form of Current/Previous and line style for NDOG - Background color to use for Current/Previous - Number of NDOGs to use by the indicator, default is 1 but price tend to react to previous ones as well - Extend Configuration: -- Always Extend all NDOGs -- Above and below only Shows the immediate two NDOGs that are above and below current price. These two NDOGs are recalculated as price moves -- Any that is near current price Any NDOG that is near the current price, this can result in multiple NDOGs being displayed, with some overlapping -- Show Date label and type of gap
Other Settings Number of candles to use in calculation is used to calculate the size of the candles in order to derive the distance from current price. If current candle sizes is more important than over longer period of time then use 14 or near that number Factor multiplier for distance test is the number above times X value. Lower timeframes require a higher number than a larger timeframe. If day trading, a value between 10 and 20 is probably best. If swing trading, a value between 5 and 10 is probably best. Buffer How many candles beyond current price to extend the gaps by. this is helpful to provide cleaner view of the price action
Hi! Any chance you could add a way to a) have multiple gaps visible on the chart but only the last one showing a date (to avoid clutter), and b) invalidate any gaps that are smaller than a certain number of pips to avoid thin lines getting displayed all over the chart that aren't big enough to qualify as gaps? (especially bad for crypto). The other Opening Gap indicator also has these kind of issues and doesn't get updated.
Either way, thanks for your work.
MyNameIsRich
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Thank you soo much to have shared a new version of NWOG with code integrated, really appreciated! Keep grinding like that! 💎⭐
Planuparp
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Thanks a lot it is very useful and really amaze about reactions on even horizon.
asto_
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Hey Fadi, really useful script. Just an FYI, you have a small bug for calculating NWOG on the XMAS holiday e.g. Monday evening start of new trading week vs. Sunday. Also, would be great of the NDOG and NWOG didn't overlap on Monday trading, maybe that is an option somehow. Cheers!
noiskrell
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Love this one! i was wondering if you can make it so you can use lines instead of boxes, and it would be even better if they were labled as nwog H and L of high and low or O and C of Open and Close, and the middle one CE of consequent encroachment.
Either way, thanks for your work.