@h00ts @syzygy
Hey syz, nice post assessment on the human element.
Hoots, for me wen I first started trying to learn TA I would see gaps and read up on runaway, break aways, windows etc but eventually came to the conclusion Heiken Ashi candles work better for my style as helps identify trends easier and also poss reversal / congestion points via doji.
The candles are much easier to read, green body upper wick is good, longer body indicating some strength & shorter body in the trend some weakness. Opp for DT and red bodies with lower wicks.
Best of all....by virtue of the HA calculations, there are no gaps just trends haha.
Gaps will always appear at times imo if a bars low is higher than prev high or its high is lower than prev low...as syz pointed out. Nothing wrong with gaps but for me must always be like for like timeframes.
Can't look at a gap on say a 15 min and then compare to a daily as the daily price spread would have absorbed the 15 mim imo.
As for the chart progtam that is trading view. They have std built in indicators and oscillators but a whole community of people who write scripts / algos in Pine that u can play with. It's where some of these more custom indicators come from.
I try them, back test, play with settings and see what works or doesn't for me.
The bar colouring comes off the wavetrend indicator and in simplest form, crosses above / below centre for more overall bullish or bearish lean and then signal line crosses colour candle to look into. Can customise OB / OS levels depending on the equity or risk appetite as well as channel lengths and average length by "n" days.
Quick ph screenshot from little while ago.
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(20min delay)