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Gapalyzer

New to trading?  Only have a limited time to trade each morning?  Maybe you should try gap trading.

Using Gapalyzer, traders can find the equities and gap areas that have the highest probability of filling intraday or know that the potential for gap-and-go is the more probable trade for the day.

Gaps on equities occur when there is a non-linear break in the price action leaving a space or a gap on charts.  Gaps occur for a number of reasons but a statistically high percentage of these gaps fill over time.  Traders often fade these gaps assuming that the gaps will fill with intraday price action.  Gaps that don't fill may continue to run in the direction of the gap.  Gapalyzer can help determine which trade is the more likely by analyzing prior price action under similar circumstances.

Gapalyzer uses historical stock prices to determine:

  • Gap Percent - percent of gaps by type and area
  • Fill Percent - percent of gaps by type and area that fill intraday
  • Gap Counts - count of gaps and fills by type and area
  • Gap Amounts - average gap amount by type and area

Traders can define the size of a gap, a time frame, and the days of the week to be analyzed.

Gapalyzer is an application that analyzes historical price data and determines when gaps occurred, filled intraday, and where they occurred relative to the prior period close.

A gap occurs when the opening price of a new period is above or below the prior period closing price.

In Gapalyzer, a gap type is either a gap up or a gap down. A gap up occurs when the open is above the prior period close. A gap down occurs when the open is below the prior period close.

A gap fill occurs when intraday price action for the current period goes below the prior period close for a gap up or above the prior period close for a gap down.

Gapalyzer defines five gap areas based upon the candle for the prior period:
  • Area one is above the prior period high
  • Area two is above the body top but less then the high of the prior period
  • Area three is between the body top and body bottom of the prior period
  • Area four is below the body bottom but greater than the low of the prior period
  • Area five is below the low of the prior period

A flat open occurs when the current period open is within a specified range, defined by the user, from the prior period close. All periods that open in this range are considered flat opens and they are excluded from the gap analysis and results except for reporting the number that occurred.
History

Version 2.0 released on March 14, 2012

Version 1.0 released on March 4, 2011