New Day Opening Gap and New Week Opening Gap MT5
New Day Opening Gap and New Week Opening Gap NWOG NDOG MT5
The New Day and New Week Opening Gap (NDOG-NWOG) indicator is a powerful tool designed for traders using MetaTrader 5. It detects price gaps that emerge at the start of a new trading day or week and visually represents them on the chart. When the market reopens following a daily or weekly closure, the price often shifts from its prior closing level, leading to a gap. This indicator highlights weekly gaps (NWOG) in red and daily gaps (NDOG) in green, aiding traders in market analysis.
Indicator Specifications
Category | Kill-Zone – Support & Resistance – ICT |
Platform | MetaTrader 5 |
Skill Level | Intermediate |
Indicator Type | Reversal – Continuation |
Time Frame | Multi Time Frame |
Trading Style | Day Trading – Medium Term – Long Term |
Markets | Crypto – Forex – Stocks – Commodities |
Functionality of the Indicator
Opening gaps serve as crucial support and resistance levels. When price revisits these zones, a potential trend shift can occur. The market often moves back to fill these gaps, making them ideal areas for entering and exiting trades. The concept of Event Horizon (PD) in ICT trading derives from the midpoint of both weekly and daily opening gaps, offering further insights into price movements.
Opening Gap Indicator in Uptrend Markets
On a EUR/USD 1-hour chart, the indicator marks the weekly opening gap in red. As shown in the chart, the price oscillates around this gap before reversing and moving upward, presenting trading opportunities.
Opening Gap Indicator in Downtrend Markets
For Arabica Coffee futures in a one-hour time frame, the indicator pinpoints daily opening gaps. In the chart, the price retraces to the highlighted daily gap, offering an opportunity to enter short positions.
Indicator Configuration Options
- Chart and Object Theme: Light background
- NYOG_Show: Annual gap display disabled
- NMOG_LookBack: 5-candle lookback for monthly gap analysis
- NMOG_Show: Monthly gap display turned off
- NWOG_LookBack: Weekly gap calculated over 5 candles
- NWOG_Show: Weekly gap display enabled
- NDOG_LookBack: 5-candle lookback for daily gaps
- NDOG_Show: Daily gap display enabled
- Invalidation: Automatic removal of outdated zones enabled
Conclusion
The NDOG-NWOG indicator is a valuable addition to MetaTrader 5, providing traders with essential insights into price movements. By focusing on daily and weekly gaps, this tool enhances trade execution across all skill levels. It is especially beneficial for those utilizing the ICT trading methodology, helping them navigate market fluctuations with greater precision.