Gap Finder Indicator, Optimizing Your Gap Trading Strategy

[perkalian]

Description of the Gap Finder Indicator
For the scalper, finding a gap with the naked eye on a low timeframe chart (M5 to H1) can be a challenge because of the high frequency of candlestick bar shaped. It does not matter if the gap value reaches tens of pip to form a wide gap, but if the gap is just a few pips adrift, often the gap will be missed.

With Gap Finder, traders can easily find gaps on the chart view. The Gap Finder will automatically display a blue arrow or a blue cross box to mark the gap up (open price is higher than the previous close bar price). While the arrow or red cross box indicates a gap down (open price lower than the price of the previous close bar)

You can reset the parameters in the Gap Finder as follows:

• A. Min gap size in points: the smallest unit of gap that will be displayed gap finder. 10 points = 1 pip on a 5-digit system behind the decimal.
• B. Hide closed gaps: hide or display a gap unit in accordance with the smallest unit gap unit requirements.

Trading Gap Signal Finder
The gap by itself can indicate the temporal sentiment of market participants. The gap up reflects a buyer's strengthened sentiment for the rally, while the down gap suggests a seller's sentiment to hit falling prices.

The trader can decide to open a position, some time after the price moves from the open price on the gap. If the next bars are unidirectional, the price is likely to continue moving the trend until it reaches the key resistance or support bar. Conversely, when the next bars are opposite, the trend is likely to end soon.

It is recommended to use the help of other indicators to improve signal quality. The illustration below uses MACD oscillators for entry and exit help.

Gap Finder Indicator