i-GAP Indicator
Identify key market gaps through up and down arrows with the i-GAP indicator for MT4.
Description
The i-GAP is a simple indicator for MT4 that draws arrows on the chart to depict market gaps.
It plots two arrows, one depicting a downward gap and the other illustrating the upward gap. With these arrows, you can find the overall market sentiment.
With an upward arrow, i-GAP shows you fewer traders are willing to sell than buyers. Conversely, with a downward arrow, the indicator presents that there are fewer buyers than sellers.
When the arrows pop up, you can take bullish or bearish positions or wait for the market to develop the trend and then take positions.
The indicator works best on lower timeframes like the one-minute chart or the 30-minute chart, as gaps appear after a major news announcement.
With this indicator, you’ll always know the most important price levels and zones for future price fluctuations in any market.
How to trade with the i-GAP indicator?
The main focus of the i-GAP indicator is to show market gaps. When gaps appear, you have to wait for confirmation.
As mentioned earlier, there are two arrows having bearish and bullish characteristics. When arrows emerge, you must wait for the price to find its path. It signals a low trading activity, and you should wait for the price to either reverse or continue the trend.
This is because the indicator doesn’t specifically represent the reversal or continuation of a trend. If you have an open long or short position, you can exit after the appearance of either arrow.
You can use the i-GAP in a longer or shorter timeframe; however, it works best in a shorter timeframe. Also, the indicator doesn’t provide exact entry and exit points. It only detects market gaps. So, it is best to use it with other indicators like the RSI or MACD.
i-GAP indicator buy setup
- Find the red or blue arrow on the chart.
- Wait for the price to continue its course.
- Enter the trade after the occurrence of a red or blue arrow.
- Put a stop-loss near the low of buying point.
- Exit the trade when the trend changes
i-GAP indicator sell setup
- Find the red or blue arrow on the chart.
- Wait for the price to continue its course.
- Enter the trade after the occurrence of a red or blue arrow.
- Put a stop-loss near the high of selling point.
- Exit the trade when the trend changes
Conclusion
An i-GAP indicator is a great tool for finding market gaps. The only concern is that the indicator doesn’t provide you with exact entry and exit points. So, it’s better to use it with other technical indicators.