TD Gap

TD Gap illustrates both Gaps and Laps. Gaps occur when either a bar's high fails to intersect the previous bar's low or a bar's low fails to intersect a previous bar's high. Laps occur when a high or low does intersect the previous bar's high or low, but not the close. Gaps and Laps are represented by a “g” for gap and an “l” for laps. If the Gap or Lap occurs on a designated day, a “+” is displayed beside the alpha character. For an up gap or lap, capital letters, “G” and “L” respectively, appear once the close of bar 8, 9, 10, or 11, after the gap bar, is greater than all closes of all bars since the Gap or Lap bar.

The reverse logic is used for a down Gap or Lap.

For further information on TDGap, please refer to Thomas R. DeMark, The New Science of Technical Analysis, New York: John Wiley & Sons, 1994, Chapter 8, Gaps.

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