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OC Gap: the hidden zone

Sometimes a candle's close and the next candle's open are not the same price, after news, a weekend or on a higher timeframe. The space between them is an Open-Close Gap, which MSNR treats as a hidden zone.

OC gap: hidden zoneclosenext open▲
The close of one candle and the open of the next leave a gap. Price later returns to that zone.

Higher timeframe gap = lower timeframe breakout

Zoom into a higher-timeframe gap on a lower timeframe and you usually find a breakout level inside it: an SBR or RBS that flipped. So you trade the gap by finding that flipped level on the lower timeframe.

Rules

  • Treat the whole gap as a zone, not a single line.
  • Refine it on a lower timeframe and look for the flipped SNR inside.
  • Do not connect trendlines to a gap SNR, unless it has been refined into a lower-timeframe engulfing level.

Check yourself

1. When you zoom into a higher-timeframe OC gap, what do you look for?

Completion history

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Study notes in my own words, based on the MSNR "Trading Secret Algorithm" and Alchemist (White) materials. Educational only, not financial advice. Practise on a demo account and with TradingView Bar Replay before risking real money.