[amibroker] Trading at the Open: DeGapping price arrays

["Herman van den Bergen" <psytek@xxxxxxxx>]

When stocks Gap 
up or down at the Open this tends to offset and introduce lag in 
Indicators that require a significant numbers of bars to get in sync (think of 
the T3). To reduce the Gap-effect (offset and lag) I started to DeGap 
some of my price arrays. If you trade the Open, especially stocks that gap 
frequently, you may want to try the formula below to see how DeGapping 
works for you<SPAN 
class=250464823-06072004>. 
<SPAN 
class=250464823-06072004> 
Happy 
Trading,
<SPAN 
class=250464823-06072004>herman.
<FONT 
size=2> 
<FONT 
size=2>SetBarsRequired(BarCount-<FONT 
color=#ff00ff>1);Os=0;<FONT 
color=#800000>for( b = 1 ; b < 
BarCount-1 ; b++ )<SPAN 
class=250464823-06072004>    {<FONT 
color=#800000>    
if( L[b-1] > H[b] 
) Os[b] = -(L[b-1] - H[b]) + 
Os[b-1];<SPAN 
class=250464823-06072004>    else <FONT 
color=#800000>if( L[b] > 
H[b-1] ) Os[b] = (L[b] - 
H[b-1]) + Os[b-<FONT 
color=#ff00ff>1];<SPAN 
class=250464823-06072004>    else Os[b] = 
Os[b-1];<SPAN 
class=250464823-06072004>    Ox[b] = O[b] - 
Os[b];    Hx[b] = 
H[b] - Os[b];<SPAN 
class=250464823-06072004>    Lx[b] = L[b] - 
Os[b];    Cx[b] = 
C[b] - Os[b];    
}

Plot(C,<FONT 
color=#ff00ff>"C",1,<FONT 
color=#ff00ff>128); // Raw Price 
arrayPlotOHLC(Ox,Hx,Lx,Cx,<FONT 
color=#ff00ff>"Cx",2,<FONT 
color=#ff00ff>128); // DeGapped 
Price arrayPlot(<FONT 
color=#0000ff>RSIa(C,10),<FONT 
color=#ff00ff>"Raw RSI(Close,10)",1,<FONT 
color=#ff00ff>1|styleOwnScale,0,<FONT 
color=#ff00ff>300);Plot(<FONT 
color=#0000ff>RSIa(Cx,10),<FONT 
color=#ff00ff>"DeGapped Close",4,<FONT 
color=#ff00ff>1|styleOwnScale,0,<FONT 
color=#ff00ff>300);Plot(<FONT 
color=#ff00ff>50,"",<FONT 
color=#ff00ff>1,1|styleOwnScale,<FONT 
color=#ff00ff>0,300);
<FONT 
face="Lucida Console"> 


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