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.
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.