i-GAP Indicator
Identify key market gaps through up and down arrows with the i-GAP indicator for MT5.
Description
i-GAP is a simple indicator for MT5 that draws arrows on the chart to represent market gaps. It shows two arrows, one representing a downward gap and the other an upward gap. With these arrows, you can determine the general mood of the market.
The up arrow shows that i-GAP shows fewer traders willing to sell than buyers. Conversely, the down arrow indicator shows that there are fewer buyers than sellers. When arrows appear, you can enter bullish or bearish positions, or wait for the market to develop a trend and then open positions.
The indicator works best on lower timeframes such as 1 minute or 30 minute charts as gaps appear after big news announcements. With this indicator, you will always know the most important price levels and areas of future price fluctuations in any market.
How to trade with the i-GAP indicator?
The main task of the i-GAP indicator is to display market gaps. When gaps appear, you have to wait for confirmation.
As mentioned earlier, there are two arrows with bearish and bullish characteristics. When the arrows appear, you must wait for the price to find its way. This signals low trading activity and you should wait for the price to reverse or the trend to continue.
This is because the indicator does not specifically represent a trend reversal or continuation. If you are long or short, you can exit after any of the arrows appear.
You can use i-GAP for longer or shorter periods of time; however, it works best in a shorter time frame. Also, the indicator does not give exact entry and exit points. It only discovers market gaps. Therefore, it is best to use it with other indicators such as RSI or MACD.
Setting up the purchase of the i-GAP indicator
- Find the red or violet arrow in the chart.
- Wait for the price to continue moving.
- Enter the trade when the red or violet arrow appears.
- Place a stop loss near the low of the buy point.
- Exit a trade when the trend changes
Setting up the sale of the i-GAP indicator
- Find the red or violet arrow in the chart.
- Wait for the price to continue moving.
- Enter the trade when the red or violet arrow appears.
- Place a stop loss near the sell high.
- Exit a trade when the trend changes
Conclusion
The i-GAP indicator is a great tool for finding market gaps. The only problem is that the indicator does not give you exact entry and exit points. Therefore, it is better to use it with other technical indicators.