GAP Finder Indicator

GAP Finder Indicator

GAP Finder Indicator For MT4 provides BUY and SELL forex trading signals using Bullish and Bearish price gaps.

The GAP finder indicator for MT4 scans the price charts and alerts if there is a BULLISH or BEARISH gap. Moreover, the indicator plots the closed gaps in history. Forex technical traders can use these gaps and trade them using open and closed gap technical strategies.

The indicator works well in all intraday price charts as well as the daily, weekly, and monthly charts. Forex traders can adjust the indicator settings to define the minimum required price gap for trading signals and alerts. Moreover, traders can enable or disable the display of closed gaps and open gaps.

GAP Finder Indicator For MT4 Trading Signals

The above EURUSD M30 price chart shows the GAP finder indicator for MT4 in action. The indicator shows the closed Bullish gaps in BLUE and Bearish gaps as RED. Similarly, it shows the Open Bullish gaps in BLUE and Bearish gaps as RED.

Gaps are formed when the price jumps while creating a difference between the closing price of the current bar and the opening price of the new bar. In a Bullish gap, the opening price of the new bar is higher than the closing of the previous bar. Similarly, in a Bearish gap, the opening price of the new bar is lower than the closing of the previous bar.

Forex traders approach this gap in two different ways. The first method is to enter the Bullish gap with a BUY position and place a stop loss below the previous swing low. However, the best take profit position is based on price action. Similarly, if there is a Bearish gap trader anticipate that the prices will continue to be bearish and place a SELL trade. The best stop loss position is above the previous swing high with profit booking based on price action.

The second method is to expect that market will close all gaps eventually. So, when there is a Bullish gap trader anticipates the price to reverse and cover the gap, this refers to a closed gap. So, traders will enter a SELL trade in a bullish gap. Similarly. If the market displays bearish gap traders expect the prices to reverse to the upside and close the gap. So, forex traders take a BUY trade in a bearish gap.

Conclusion
The GAP finder indicator for MT4 is helpful for a section of traders for gap trading techniques. However, the major benefit for gap traders is the alerts that help the trader once there is a gap. Additionally, forex traders can download the indicator for free and install it easily.