Bearish Gap Down Detection

This indicator is designed to identify bearish gap downs in price action and visually mark them on your chart. A gap down occurs when today's opening price is below the previous day's low, and the closing price remains below that low, signaling a potential bearish continuation or reversal.

Features:

• Precise Gap Down Detection: Identifies only confirmed bearish gap downs, avoiding false signals.
  
• Clear Visual Markers: Marks detected gap downs with a red downward triangle above the bar for easy identification.
  
• Minimalist Design: Focuses solely on gap down detection, without any reliance on moving averages or additional noise.
  

Use Cases:

• Trend Reversals: Spot potential downward trends as they develop.
  
• Momentum Confirmation: Use alongside other indicators or strategies to confirm bearish momentum.
  
• Swing Trading Opportunities: Ideal for traders looking to capitalize on significant price movements.
  

How It Works:

The script detects a gap down when:

• Today's opening price is below the previous day's low.
  
• Today's closing price stays below the previous day's low.
  

When these conditions are met, the indicator plots a red triangle above the price bar, signaling a bearish gap down.


Best Practices:
Apply this script to daily or higher timeframes for more reliable results.
Combine it with other indicators, such as support/resistance levels or volume analysis, for enhanced decision-making.