GlossaryCME Gaps (spot approximation)
CME Gaps (spot approximation)
Bitcoin trades around the clock, the CME Bitcoin future does not. What happens during its trading break leaves a gap at the reopen, and experience shows the market often returns to it. The study looks for these gaps on your chart, draws them as zones on the price and shows the distance to the nearest open gap in the pane.
Note The study is an approximation. It does not measure the future itself, but the symbol of your chart: the last close before the break against the first price after it.
How to read it
An open gap is not a price target with a date, but an area the market often returns to. The curve is most useful at small values: a gap two percent away acts more like a magnet than one twenty percent away. The sign tells you which way the magnet pulls.
Limitations
- Spot instead of future: The price difference between future and spot (the basis, usually a few tenths of a percent) is missing. The real CME gaps therefore sit slightly differently.
- Edges of the break: The study measures on UTC day boundaries, from the Friday close at midnight UTC to the Monday open at midnight UTC. The real CME break starts on Friday evening and ends on Sunday evening, so the edges differ by a few hours.
- Holidays: On a chart that trades continuously, the study only detects weekend breaks, not midweek holiday breaks.
- Bitcoin only, intended for 1h to 1D. On weekly candles, there are no weekend candles that could be skipped.