Smart Gap Projection MTF

Smart Gap Projection MTF
## Brief Description
Professional indicator for projecting US Dollar Index (DXY) gaps onto the traded instrument with multi-timeframe analysis support and advanced visualization.

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## Originality and Uniqueness

**Smart Gap Projection MTF** is a unique development that solves the specific task of correlation analysis between the Dollar Index (DXY) and currency pairs, cryptocurrencies, or other dollar-dependent assets.

### What makes this indicator original:

1. **Inter-market gap projection** - the indicator doesn't just display gaps on the current instrument, but projects gaps from the DXY index onto your asset's chart, creating unique trading levels

2. **Dual confirmation system** - uses a mechanism of waiting N candles after a gap appears on DXY to filter false signals

3. **Intelligent lifecycle tracking** - each projected level is tracked until price touch or gap closure on DXY, with automatic visualization changes

4. **Multi-Timeframe extension** - ability to simultaneously display gaps from a lower timeframe of the current instrument to identify intraday opportunities

5. **Adaptive visualization (Heatmap)** - line intensity and width automatically change depending on gap size, helping to visually identify the most significant levels

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## How the Indicator Works

### Core Operating Principle

The indicator analyzes the US Dollar Index (DXY) price movement in real-time and identifies gaps (price breaks) between candle closes and opens. When a gap forms on DXY, the indicator:

1. **Determines gap type** - bullish (price opened above previous close) or bearish (price opened below)

2. **Checks gap size** - filters insignificant gaps by absolute size (in points) and percentage value

3. **Waits for confirmation** - after detecting a gap, the indicator waits for a specified number of candles (default 3) to confirm that the gap didn't close immediately

4. **Projects the level** - after confirmation, a horizontal line is drawn on the current instrument's chart at the High level (for bullish DXY gap) or Low level (for bearish DXY gap) of the candle where the gap formed

5. **Tracks status** - the indicator continuously monitors:
- Price touching the projected level (line becomes more transparent)
- Gap closure on DXY itself (line changes color to orange)

### Conceptual Foundation

The methodology is based on the observation that:
- Gaps on the Dollar Index often lead to synchronous movements on correlated assets
- Price levels at the moment of DXY gap formation become price magnets
- Gap closure on DXY often coincides with trend reversal on dependent instruments

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## How to Use the Indicator

### Basic Setup

1. **Add the indicator to the chart** of any asset correlated with the dollar (EUR/USD, GBP/USD, Bitcoin, Gold, etc.)

2. **Configure main parameters:**
- `DXY Symbol` - leave as "TVC:DXY" (standard Dollar Index ticker)
- `Minimum gap size` - minimum gap size in points (0.0001-0.001 for DXY)
- `Confirmation candles` - number of confirmation candles (recommended 3-5)

3. **Set up visualization:**
- Choose colors for bullish and bearish gaps
- Set desired transparency for each gap type
- Enable/disable `Use heatmap` for adaptive visualization

### Timeframe Recommendations

- **Scalping (M1-M5):** use MTF gaps from M1 timeframe, confirmationCandles = 2-3
- **Intraday (M15-H1):** standard settings, can add MTF M5-M15
- **Swing trading (H4-D1):** increase confirmationCandles to 5-10, MTF H1-H4

### Use with Other Instruments

The indicator is universal and works on:
- **Forex:** EUR/USD, GBP/USD, USD/JPY, AUD/USD and other dollar pairs
- **Cryptocurrencies:** BTC/USD, ETH/USD (direct dollar dependency)
- **Commodities:** Gold (XAU/USD), Silver (XAG/USD), Oil
- **Indices:** SPX, NDX, especially during dollar movements

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## Configuration Parameters

### Main Settings

- **DXY Symbol** - Dollar Index symbol (default TVC:DXY)
- **Minimum gap size** - minimum gap size in points for filtering
- **Minimum gap size (%)** - minimum percentage size (0 = disabled)
- **Confirmation candles** - number of candles for confirmation (1-10)
- **Maximum gaps on chart** - maximum number of displayed projections

### Multi-Timeframe

- **Enable MTF gaps** - enable/disable MTF gaps
- **Timeframe for gaps** - select lower timeframe for search
- **Max MTF gaps** - maximum number of MTF lines (5-2000)
- **Min MTF gap size** - minimum MTF gap size
- **MTF lines color** - MTF lines color
- **MTF lines style** - line style (Solid/Dashed/Dotted)
- **MTF lines width** - MTF lines width (1-3)

### Visualization

- **Extend lines right** - extend lines to the right
- **Use heatmap** - use adaptive visualization (width/brightness from gap size)
- **Stop lines when DXY gap closes** - stop lines when gap closes on DXY

### Colors

- **Bullish gap color** - color of bullish DXY gap lines
- **Bullish Transparency** - transparency of bullish lines (0-90)
- **Bearish gap color** - color of bearish DXY gap lines
- **Bearish Transparency** - transparency of bearish lines (0-90)
- **Line style** - style of all projection lines

### Alerts

- **Alert on new gap** - notification when new gap is confirmed

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## Features and Advantages

✅ **Inter-market analysis** - uses correlation between DXY and traded asset

✅ **Automatic filtering** - excludes insignificant and quickly closing gaps

✅ **Multi-timeframe analysis** - combines signals from different time periods

✅ **Visual hierarchy** - heatmap automatically highlights most significant levels

✅ **Lifecycle tracking** - each level is monitored until touch or gap closure

✅ **Universality** - works on any dollar-correlated assets

✅ **Non-repainting** - all levels are fixed historically and don't change

✅ **Customizable visualization** - full control over colors, styles and transparency

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## Limitations and Important Notes

⚠️ **Indicator is not a trading system** - it's a technical analysis tool requiring confirmation by other methods

⚠️ **Works only on assets correlated with DXY** - on instruments without dollar correlation, signals will be ineffective

⚠️ **Requires understanding of inter-market relationships** - recommended to study correlations between DXY and your instrument

⚠️ **DXY data quality** - ensure your data provider supplies correct TVC:DXY history

⚠️ **MTF data** - when using very low MTF timeframes, delays in updates are possible

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## Who This Indicator Is For

👨‍💼 **Forex traders** - analyzing macroeconomic dollar movements

📈 **Crypto traders** - considering dollar influence on Bitcoin and altcoins

🥇 **Commodity market traders** - trading gold, silver, oil

📊 **Intraday scalpers** - using MTF for precise entries

📉 **Swing traders** - looking for medium-term entry points at key levels

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## Disclaimer

This indicator is intended solely for educational and informational purposes. It is not financial advice or a recommendation to act. All trading decisions you make at your own risk. Past results do not guarantee future performance. Always use proper risk management.