GAP Finder Indicator

The GAP Finder indicator for MT5 is a powerful tool for detecting bullish and bearish gaps on price charts. By automatically scanning historical and current gaps, the indicator provides alerts that help traders capitalize on gap-based trading strategies.

Gaps occur when the opening price of a new bar differs from the previous bar’s close. A bullish gap happens when the new bar opens above the prior close, while a bearish gap occurs when the new bar opens below the prior close. The GAP Finder indicator highlights these gaps using color-coded signals:

Blue: Bullish gaps (open or closed)

Red: Bearish gaps (open or closed)

How GAP Finder Works

The indicator works effectively on intraday, daily, weekly, and monthly charts. Traders can adjust the minimum gap size to filter trading signals and choose whether to display open gaps, closed gaps, or both.

GAP Finder Trading Strategies

 Trading in Gap Direction

Bullish Gap: Enter a BUY trade with stop-loss below the previous swing low.

Bearish Gap: Enter a SELL trade with stop-loss above the previous swing high.

Take Profit: Use price action for optimal exits.

 Gap Closure Strategy

Bullish Gap: Expect the price to reverse and close the gap, enter a SELL trade.

Bearish Gap: Expect the price to rise and cover the gap, enter a BUY trade.

Take Profit: Based on gap closure targets using previous price levels.

These strategies provide flexibility depending on whether traders prefer trend continuation or gap-filling approaches.

Advantages of GAP Finder

Automatic Alerts: Helps traders catch gaps as they occur.

Historical Gap Analysis: Displays previously closed gaps for analysis.

Customizable Settings: Adjust minimum gap size and display preferences.

Multi-Timeframe Support: Works on M1 to monthly charts.

Beginner-Friendly: Easy to interpret and apply for gap trading.

Things to Keep in Mind

While the GAP Finder indicator simplifies gap detection, traders should combine gap signals with price action or other technical indicators for better confirmation. Like all indicators, it should complement a comprehensive trading strategy.

Conclusion

The GAP Finder indicator for MT5 is an essential tool for traders looking to exploit bullish, bearish, or gap-closure strategies. Its alert system and visual gap display make it highly effective for intraday and longer-term trading. Download it for free and start using it today on IndicatorForest.com.