OPEN-SOURCE SCRIPT
Gap-Down Breakdown Level [DefinedEdge]
🎯 WHAT IT DOES
Marks a specific, mechanical setup on the daily chart: a stock that gaps down hard, closes red, then loses the low of that gap-down day. The gap-day low becomes your level. The indicator watches it for several sessions and flags when price breaks below.
💡 THE LOGIC
A gap down is just an event. What matters is what happens after.
When a name gaps down, closes weak, and then breaks the low of that day, it's telling you the sellers who showed up on the gap are still in control and the weakness is following through.
This isn't looking for a bounce or a reversal. It marks the level where continued weakness gets confirmed.
🎨 HOW TO READ IT
The gap-day low is drawn as a dashed line and stays live for a set number of sessions. The color tells you the state at a glance:
🟡 Amber — new setup just formed
🔵 Blue — level is live and being watched
🔴 Red — price broke the level
⚪ Grey — expired without a break
A status panel in the corner spells out the current state in plain language, plus an optional volatility read.
⚙️ INPUTS
▸ Minimum gap-down size + red-body confirmation
▸ How many sessions the level stays live
▸ Minimum price filter
▸ Optional VIX regime gate — this type of setup historically weakens in high-volatility environments, so you can stand it down above a threshold
▸ Full color and display controls
📌 NOTES
Built for the daily timeframe on liquid US equities. The level is set from the prior session, so you can mark it and rest an order rather than waiting on a live signal.
This is a research and education tool for studying gap-down continuation behavior. It does not tell you to buy or sell anything. Not financial advice - do your own work and manage your own risk.
Marks a specific, mechanical setup on the daily chart: a stock that gaps down hard, closes red, then loses the low of that gap-down day. The gap-day low becomes your level. The indicator watches it for several sessions and flags when price breaks below.
💡 THE LOGIC
A gap down is just an event. What matters is what happens after.
When a name gaps down, closes weak, and then breaks the low of that day, it's telling you the sellers who showed up on the gap are still in control and the weakness is following through.
This isn't looking for a bounce or a reversal. It marks the level where continued weakness gets confirmed.
🎨 HOW TO READ IT
The gap-day low is drawn as a dashed line and stays live for a set number of sessions. The color tells you the state at a glance:
🟡 Amber — new setup just formed
🔵 Blue — level is live and being watched
🔴 Red — price broke the level
⚪ Grey — expired without a break
A status panel in the corner spells out the current state in plain language, plus an optional volatility read.
⚙️ INPUTS
▸ Minimum gap-down size + red-body confirmation
▸ How many sessions the level stays live
▸ Minimum price filter
▸ Optional VIX regime gate — this type of setup historically weakens in high-volatility environments, so you can stand it down above a threshold
▸ Full color and display controls
📌 NOTES
Built for the daily timeframe on liquid US equities. The level is set from the prior session, so you can mark it and rest an order rather than waiting on a live signal.
This is a research and education tool for studying gap-down continuation behavior. It does not tell you to buy or sell anything. Not financial advice - do your own work and manage your own risk.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.