Overnight Gap Dominance Indicator (OGDI)

The Overnight Gap Dominance Indicator (OGDI) measures the relative volatility of overnight price gaps versus intraday price movements for a given security, such as SPY or SPX. It uses a rolling standard deviation of absolute overnight percentage changes divided by the standard deviation of absolute intraday percentage changes over a customizable window. This helps traders identify periods where overnight gaps predominate, suggesting potential opportunities for strategies leveraging extended market moves.
Instructions

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1. pply the indicator to your TradingView chart for the desired security (e.g., SPY or SPX).
   
2. Adjust the "Rolling Window" input to set the lookback period (default: 60 bars).
   
3. Modify the "1DTE Threshold" and "2DTE+ Threshold" inputs to tailor the levels at which you switch from 0DTE to 1DTE or multi-DTE strategies (default: 0.5 and 0.6).
   
4. Observe the OGDI line: values above the 1DTE threshold suggest favoring 1DTE strategies, while values above the 2DTE+ threshold indicate multi-DTE strategies may be more effective.
   
5. Use in conjunction with low VIX environments and uptrend legs for optimal results.