Wondering how to enhance your trading skills and ultimately improve your earning? Then you are in the right place. If you are a newbie, you need two major things to enhance your trading skills and improve your income – the right knowledge and the ability to use technical indicators.
You can get the right knowledge on how to make consistent profits off the FX market from forex brokers and online academies offering training programs tailored towards newbies. On the other hand, some technical metatrader indicators come pre-installed on the MT4 trader, while you need to download others to improve your skills.
While there are several technical indicators available for traders to use, one indicator you need to give adequate attention is the gap indicator MT4. This indicator is useful if you are desirous of trading gaps or you need an automatic means of detecting gaps in a currency pair. The gap indicator is very flexible, as you can configure it to alert you via email or text message whenever a new gap occurs. Using this indicator will enable you to focus on other important things while you are trading on auto-pilot.
In light of the above, we will take an in-depth look into the gap indicator and then show you how to use the indicator to enhance your skills to become a veteran.
What Does Gap Trading Mean?
Gaping trading started on the forex market, as there are lots of gaps in stocks. Nowadays, gap trading can be applied in every other financial instrument.
Generally, there are 2 ways of trading gaps – the first way is to trade with the gaps’ direction with the hope that the direction of the market will continue that way. The second way of trading gap is to trade against the gap with the hope that the gap will close very soon. Of these two ways, the latter is more popular than the former.
Gap Trading Strategy
The core principle of trading gap is to place a buy order the moment there is a downward gap. Similarly, you should place a sell order the moment you observe an upward gap. This strategy ensures that you don’t lose your hard-earned money to market forces. The Gap Indicator works good with the RSI Divergence indicator mt4.
The Gap Indicator MT4 Settings
We mentioned earlier that the Gap Indicator MT4 is very flexible. You can adjust the default settings to suit your trading style. The most important setting of the indicator is to set the minimum size of a new gap which the indicator will detect.
Other settings are the alert system (to turn it off or on), close gap settings, and whether or not the indicator should display closed gaps on the chart. Lastly, you can change the default colour setting to your preferred.
Benefits of Using the Indicator
While it may appear simple and straightforward to trade gaps, it involves a lot of work monitoring different currency pairs for gaps. In fact, it can become annoying sometimes if you are not able to sight any gap with your naked eyes – the process can be so stressful. But using the gap indicator, you will be free from all of these troubles.
Also, you can configure the alert system to notify you the moment there is a gap in your target currency pair so that you can close a winning trade. Plus, the indicator will enable you to determine the right time to exit a trade position so that you don’t lose your hard-earned money.
Additionally, the gap indicator MT4 doesn’t clutter your trading chart. You can do other things like technical analysis or review other trading strategies while the indicator is running in the background. This is helpful in terms of space savings and helping you to coordinate other trading activities.
Installing The Gap Indicator MT4
We said earlier that some indicators come pre-installed on the MT4 trader, while you need to download and install others. The gap indicator falls into the latter category. Below, we have highlighted how to install the indicator for your convenience:
1. Download the gap indicator MT4 from a trusted source
2. Save the file in a location where you will easily remember
3. Copy the file to your MT4 indicator list
4. Restart or start your MT4 trader if it was off
5. Search for the gap indicator in your custom indicator list
6. Once you find the indicator, right-click on it to attach it to the chart
7. Adjust the settings to suit your needs and click okay
8. The indicator should appear on your chart
Removing the Indicator
Here is how to uninstall the indicator:
1. Start the MT4 trader
2. Search the custom indicator list for the gap indicator
3. Right-click on the indicator and select delete from the drop-down.
4. The indicator should disappear from your chart.
Summary of Gap Indicator MT4
Desirous of becoming a veteran trader anytime soon? Then give the thought of downloading and installing the gap indicator MT4 serious consideration. The tool is a must-have for all categories of traders, particularly those interested in trading gaps.
As always, don’t use this indicator in isolation. Combine it with at least 4 more technical indicators to increase your chances of winning in a trade position. Also, we have a wide range of technical indicators on our best forex indicator website for you to consider from this link. From Support and Resistance indicators, Stochastic Oscillator indicator to the breakout indicator, and MACD indicator; you name it!
Lastly, after installing the gap indicator, do not attempt a trade with a live account. We encourage you to start with a demo account so that you can learn in real-time how the indicator works on different currency pairs.