As the name implies, the Gap Finder Forex indicator for MT4 (Metatrader 4) finds gaps in the market for any currency pair.
The indicator pops up in the main MT4 chart window as a colored arrow, which displays the actual market gap.
Free Download
Download the “GapFinder.mq4” indicator for MT4
Indicator Chart (USD/CHF M30)
The example chart below displays the Gap Finder Forex mt4 indicator in action on the trading chart.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Gaps
Does the indicator repaint? No.
Forex Market Gap Trader Metatrader 4 Strategy
This day trading strategy combines the Gap Finder Forex Indicator and the XTC Forex Trend Indicator to trade gaps with trend confirmation.
The Gap Finder identifies bullish and bearish gaps using green and red arrows, respectively.
The XTC Trend Indicator confirms momentum with blue histogram bars for bullish trends and red bars for bearish trends.
This strategy works best on 15-minute to 1-hour charts during active market sessions and is suitable for day traders looking to capture gap-related price movements.
Buy Entry Rules
- Wait for a green arrow on the Gap Finder indicating a bullish gap.
- Confirm the trend is bullish with blue histogram bars on the XTC Trend Indicator.
- Enter a buy trade at the close of the confirming candle after the gap appears.
- Set the stop loss below the low of the gap candle or nearby support.
- Set take profit at a 1:2 reward-to-risk ratio or exit if the XTC histogram turns red or the Gap Finder shows a bearish gap.
Sell Entry Rules
- Wait for a red arrow on the Gap Finder indicating a bearish gap.
- Confirm the trend is bearish with red histogram bars on the XTC Trend Indicator.
- Enter a sell trade at the close of the confirming candle after the gap appears.
- Set the stop loss above the high of the gap candle or nearby resistance.
- Set take profit at a 1:2 reward-to-risk ratio or exit if the XTC histogram turns blue or the Gap Finder shows a bullish gap.
Advantages
- Combines gap trading with trend confirmation to improve trade accuracy.
- Clear signals make it easy to spot high-probability trades.
- Helps traders capture intraday price gaps that often lead to strong moves.
- Works well across multiple currency pairs with noticeable gaps.
- Non-repainting indicators ensure signals remain reliable after formation.
Drawbacks
- Gaps may be rare on low-volatility pairs, limiting trading opportunities.
- False gap signals can occur in choppy or sideways markets.
- Trades may be stopped out if the gap quickly reverses before momentum develops.
- Requires monitoring multiple currency pairs to find gaps and strong trends.
- Unexpected news events can cause rapid reversals that invalidate gap trades.
- Timing is critical; entering too late after the gap forms can reduce potential gains.
Case Study 1
On the EUR/USD 30-minute chart, a green arrow appeared on the Gap Finder, and the XTC Trend Indicator displayed blue histogram bars.
A buy trade was entered at 1.1875, with a stop loss at 1.1855 and a take profit at 1.1915.
The trade reached take profit within 2.5 hours, yielding a 40-pip gain.
Case Study 2
On the GBP/JPY 1-hour chart, a red arrow appeared on the Gap Finder, and the XTC Trend Indicator displayed red histogram bars.
A sell trade was entered at 149.25, with a stop loss at 149.60 and a take profit at 148.50.
The trade reached the target price within 3 hours, capturing 75 pips.
Strategy Tips
- Focus on major pairs like EUR/USD, GBP/USD, USD/JPY, and GBP/JPY for frequent gaps.
- Use high-liquidity sessions like London and New York for stronger trend confirmation.
- Combine with intraday support and resistance or pivot levels to filter entries.
- Set alerts for gap arrows to act quickly on opportunities.
- Consider trailing stops to lock in profits if the trend continues after the gap.
- Be cautious during major news releases that can trigger unexpected gap reversals.
