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Platforms: | TradeStation, Multicharts |
| Market: | All(Stock, Futures, Forex, Options…) | |
| TimeFrame: | Any (Tick, Minute) | |
| Trading Style: | Gap Trading | |
| Licence: | Lifetime |
What is The Gap Finder Indicator?
The Gap Finder is a very easy to use yet extremely powerful indicator. The indicator identifies Gaps at the opening of the market and then clearly marks the gaps on the chart. Only the highest probability gaps are marked, as gaps are filtered according to user specifications. It is important to remember that almost always gaps become strong support and resistance levels. Never miss another gap again.
How do I use the Gap Finder Indicator?
The Indicator is build out of 3 lines, the Close of the previous day, the Open of today, and a third optional line the Half Gap line. The indicator also presents more useful information such as the prices of the lines and the size of the gap. There are numerous stocks in the market such as AAPL that are gapping stocks, AAPL loves to create gaps in the morning and almost always closes them down. This indicator was designed exactly for such stocks. When a gap is formed and its size is substantial enough, we examine the first few bars of the day and enter a trade in the direction against the direction of the gap. If the Gap was a Bearish gap we will go Long and if the Gap was a Bullish gap we will go Short.
Lets see the indicator in action:
AAPL 3 Min Chart: First of all lets go over the components of the indicator again, The Blue line is yesterday’s close notice the writing below it, the Yellow line is Today’s Open and again the text is above it. The Distance between the lines is the size of the Gap. Also notice the line in the middle the Half gap line. The last thing to point out is that the text above the Today’s open also contains the size of the Gap -1.55%.
We have a very nice Bearish Gap, as the day opens, we wait about 4 bars and clearly see that the trend is upwards and we go long, you may want to sell of half of the position when we cross the Half Gap line, or if you feel comfortable with the position hold everything to the point where the price crosses above yesterdays close and the gap is finally closed. This signal resulted in a great trade. Also notice how a yellow dot marks the closing of the gap.
IBM 3 Min Chart: This is a great example of a gap that was not closed. But notice how the gap serves as a strong resistance level 4 times. This is another very useful use of the Gap Finder indicator.
Key Features:
- Filter out only the best Gaps (according to user specifications).
- Control the Color and Style of the Lines.
- Control the Text and its color.
- New Feature – Built in Alerts.
- Works on any Symbol and Works Great with Ticks.
Buy a Lifetime Licence for the DIG Gap Finder Indicator:
After purchase, the code will be sent to your email with instructions on how to install & use it.It usually takes us 48 to send the product.
Secure Purchase: You will be transferred to a secure purchase page, we are using paypal as our third party checkout. the purchase page will look like this:
