A creative way to classify opening gaps that was created by the founder of InvestiQuant, Scott Andrews. It looks at where a market is opening in relation to its prior regular session candlestick (OHLC levels) and open to close direction (candlestick color) to create 10 distinct opening zones. If the prior session closed above its open(green candle) then it is classified as an Up day. If it closed below its open (red candle) it is classified as a Down day. Up (U) and Down (D) are the first letters used in the Gap Zone classification. The second input is where today’s session is opening in relation to the prior session Open (O), High (H), Low (L), and Close (C). For example, if the prior session was an Up (U) day and the open of the current regular session is greater than the High (H) of the prior day then the gap is opening in the U-H zone.
