DIG Gap Finder

DIG Gap Finder


  • $129.00

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What is The Gap Finder Indicator?

The Gap Finder is a very easy to use but extremely powerful indicator. It identifies gaps in the opening of the market, filtering according to user specifications, and then clearly marks the gaps on the chart. You will never miss a gap again. Remember that gaps almost always become strong support and resistance levels.

How do I Use the Gap Finder Indicator?

The Gap Finder indicator is based on three lines: the close of the previous day, the open of today, and a third optional line, the half-gap line. The indicator also presents information such as the prices of the lines and the size of the gap.

Numerous stocks in the market such as AAPL are gapping stocks; AAPL loves to create gaps in the morning and almost always closes them down. We have designed this indicator for such stocks. Basically, when a gap is formed and its size is sufficiently substantial, we examine the first few bars of the day and enter a position against the direction of the gap. So, if the gap is a bearish gap, we will go long and if it is a bullish gap, we will go short.

Lets see the indicator in action:

AAPL 3 Min Chart: First, let’s go over the components of the indicator again. The gap indicator is built up from two lines; the color indicates the direction of the gap – in our case, red means a down gap. The top line represents yesterday’s close and the bottom line represents today’s open. The distance between the lines is the size of the gap. Also notice that the line in the middle is the half-gap line. The last thing to point out is that the text above 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, after which the market turns around and the brave once again can enter. Here, we usually wait for the first pullback and then enter. You may want to sell half of the position when the price crosses the half-gap line. However, if you feel comfortable with the position, you may hold everything to the point where the price crosses above yesterday’s close and the gap is finally closed. This signal resulted in a great trade. Also, notice that a yellow right tick marks the closing of the gap.

MLNX 1 Min Chart: This is a great example of how a gap line can serve as support and resistance. Note that the price both supports from the gap close price (the lower line) and is pushed down from the gap open (the upper line).

Key Features:

  • Control the minimum size of the gap.
  • Search for gaps by day or by session.
  • Control the color and style of the lines.
  • Control the Presentation and the Text and its color
  • New Feature – Track the progress of the gap with our tracker line.
  • New Feature – Built in alerts.
  • • Full support for tick charts.

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