Time installing the indicator: Just a few minutes with our MetaTrader Pro setup
What does it do?
The Analytic Trading Gaps Indicator for MetaTrader automatically draws levels for the either inner high & low or open & close of gaps in the market price according to the preferred setting.
It then sets potential stop and target levels – based on adjustable parameters – and gives screen and email alerts for the gap, and potential trade setups.
Lastly, based your the settings, is counts the number of stops and targets that would be hit for each trade, and calculates the past profit-ratio in return-per-lot-traded – so you can very quickly backtest various parameters.
What is it for?
Gaps in the market price of any instrument are areas of interest in the same way that breakout candles are – in that price has only tested the price level breeched from one side and not yet the other side.
By trying various minimum gaps sizes, target levels and stop level multipliers you can find the optimum trade setups for each instrument applied to – based on the available historical chart data for each timeframe.
How do we use it?
We mainly trade the weekend forex price gaps and, in addition, look for large daily index and stocks gaps for setups that fit our criteria.
There are two ways we will trade the gap. Firstly, as an area of attraction for price movements to re-test levels for the first time from the opposite side. Secondly, as an indication of directional bias – looking for good value trade entry levels if the price gap closes at an extended ATR for the target timeframe.
Gaps specific settings
In most cases these settings can be left on the default values, although users with different strategies or preferences to our own may want to be able to adjust them.
|Variable||Default Value||Possible Values||Description|
|BackBars||5000||whole numbers||This is the amount of bars back used to analyse for gaps.|
|MinGapSizeInPips||5.0||decimal numbers||This is the minimum gaps size to be analysed for display, statistics and alerts.|
|TargetHighLow||false||true/false||This switch is for testing the difference between targeting a full-gap closure, to targeting the close price prior to the gap opening.|
|StopMultiplier||1.0||decimal numbers||This is the multiplier of the trade target level used to calculate the stop level for testing various risk:reward settings. 1.0 = a 1.0R trade, 0.5 = a 2.0R trade, 2.0 = a 0.5R trade etc.|
|TargetTolleranceinATRs||0.1||decimal numbers||This is the adjustment inwards for the gap target level used to measure the effect of closing trades within the tolerance factor to test for near-miss gap closing.|
|GapUpColor||Maroon||any colour name or RGB value||The colour of the bullish breakout level lines.|
|GapDownColor||DarkGreen||any colour name or RGB value||The colour of the bearish breakout level lines.|
|TargetUpColor||LimeGreen||any colour name or RGB value||The colour of the target level for long trades.|
|TargetDownColor||Red||any colour name or RGB value||The colour of the target level for short trades.|
|StopColor||White||any colour name or RGB value||The colour of the stop loss level.|
|ExtendStopLines||false||true/false||This is the switch for whether to show the stop lines extending until they are hit regardless of whether the target level is hit first.|
|Show_Past_Gaps||true||true/false||This is the switch for showing past gaps visually on the chart or just the latest gap.|
|ShowStatistics||true||true/false||This is the switch for showing the trade statistics on the chart based on the above settings.|
|IncAllGapsInMoveStatistics||false||true/false||The switch to for whether to include all gap targets and stops hit in the statistics or just the first one hit.|
|SundayGapStart||21:00||time as a number based on the 24h clock||The time on which to use as the base for the opening price at the beginning of the week. We use this on OANDA where the open time is 20:00 GMT/BST to count trades and send alerts from between 20:00 and 22:00 GMT/BST.|
|BrokerOffsetHours||2||whole numbers||This is the offset in hours between your broker time and either your preferred local time or GMT/BST – used to calculate the SundayGapStart time above.|
|GapAlert||true||true/false||The switch to turn screen alerts on and off.|
|GapEmail||true||true/false||The switch to turn email alerts on and off.|