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Creator: Jayanthi Gopalakrishnan
GAPO is a volatility indicator based on the log of the price range over a particular period defined by the user.
Below is a formula for the indicator
GAPO=[Log(Highest highn−lowest lown)]/Log(n)
The GAPO indicator determines the range of price trends for stocks. It helps in deciding between more volatile stocks and stocks that tend to move in slow and consistent trends.
The GAPO indicator is below the average line and the bullish price action indicates a strong price trend with less volatility.
The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.
This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.