Thigh Gap Indicator (Thy Gap)
The Thigh Gap Indicator is a momentum indicator that uses moving averages to measure the strength of the traffic lights, making it a powerful tool for reading short-term momentum.
Colors and Momentum
- Dark Blue: Strong Bullish Momentum
- Light Blue: Weakening Bullish Momentum
- Dark Orange: Strong Bearish Momentum
- Light Orange: Weak Bearish Momentum
When the Thigh Gap Indicator goes from a dark color to a light color, this can also indicate a reversal.
The Reversal Signal 👇
The reversal signals are the small hands pointing at a bar, indicating a potential reversal at that point.
Traffic Light / Chop Prediction
When the Thigh Gap Indicator approaches the neutral line and the size of the moving averages gets smaller, this might be a sign that a traffic light is about to occur on the charts. If the Thigh Gap Indicator moving averages get smaller and start to move sideways, this indicates choppy price action. The moving averages get a red border to indicate either of the two scenarios above.
Support and Resistance
Based on observation, the bars tend to move towards a level (like price action), and respect it. This provides additional insight into where momentum might be headed or if momentum is expected to slow down at a certain point.
Neutral Line / Traffic Light Signal Line
The Neutral Line, or Traffic Light Signal Line, is the middle line of the indicator. When the candles cross this line, a traffic light signal gets triggered on the chart. Sometimes, the candles tend to move sideways when they reach this line, causing choppy price action. You might also see multiple traffic lights trigger one after another.
The Thigh Gap Histogram
The Thigh Gap Histogram is an alternate way to read the Thigh Gap Indicator instead of using candles. The same principles apply here. You can disable the candles and just use the histogram entirely, disable the histogram and only use the candles; or have both visible, which is the default.
Thigh Gap Settings
The Thigh Gap exposed settings are all cosmetic and up to user preference. You may enable / disable any of the above features as you please without affecting the actual indicator.
