Gap Reversal

Gap Reversal (1m Gap Fade Screener + Entries)

Gap Reversal is a 1-minute, opening-drive indicator designed to spot early gap-fade opportunities using price action + Stochastic alignment, while also providing a quick “screener” table for liquidity and premarket context.

Indicator Parts

1) Screener Table (top corner)

* Gap %: Previous day close → today open (green when within the configured gap window, default 4%–20%; red otherwise)
* Market Cap (USD): Green if > $2B, red otherwise (estimated from shares outstanding × price, converted to USD when applicable)
* Average Daily Volume: Green if ≥ 1M, red otherwise (default 20-day average)
* Premarket Volume: Green if ≥ 200K, red otherwise (accumulated during the configured premarket session)

2) Entry Signals (computed on true 1-minute data)
Signals are always evaluated on 1m, and will display on any chart timeframe via lower-TF aggregation.

* Long (Gap Up Fade)

* Day opens above prior regular-session close (gap up), and gap size is within the configured range
* Signal occurs in the first N minutes (default 12 1m bars)
* Candle closes in the top third of its range
* Price is not below 1/3 of the gap size from the open (protects against over-extension)
* At least one red candle occurred before the signal (within the lookback window)
* Stochastic (5,3,3): %K > %D

* Short (Gap Down Fade)

* Day opens below prior regular-session close (gap down), and gap size is within the configured range
* Signal occurs in the first N minutes (default 12 1m bars)
* Candle closes in the bottom third of its range
* Price is not above 1/3 of the gap size from the open
* At least one green candle occurred before the signal (within the lookback window)
* Stochastic (5,3,3): %D > %K

Visuals

* Green up arrow + “Enter Long” when long conditions trigger
* Red down arrow + “Enter Short” when short conditions trigger
* Reference lines for prior day close, today open, and the 1/3 gap levels

Inputs you can customize

* Gap % min/max, opening window length, prior candle lookback windows
* Stochastic parameters (K length, K smoothing, D smoothing) and Low/High thresholds (thresholds are configurable for your workflow)

Alerts

Includes built-in alert conditions:

* Gap Reversal Enter Long
* Gap Reversal Enter Short

Note: This indicator is intended for screening and signal marking. Always validate signals with your ticker’s liquidity, spread, and your execution rules.


Happy Trading!
Yuval.