Ind Gap detector mt4 with alerts
- Indikatoren
- Mauricio Valbuena
- Version: 1.0
- Aktivierungen: 5
FVG in trading refers to "Fair Value Gap", . It is a concept used in technical analysis to identify areas on a price chart where there is a discrepancy or gap between supply and demand. These gaps can occur due to rapid movements in price, usually as a result of important news or economic events, and are usually filled later as the market stabilizes.
The GAP DETECTOR indicator is designed to identify fair value gaps (FVG) on the price chart and filter them using volatility to detect effective impulses. This approach combines the identification of imbalances in the market, providing more accurate and effective trading signals.
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Identification of Fair Value Gaps (FVG):
- Fair Value Gaps : The indicator identifies areas on the chart where sharp movements have occurred, creating significant gaps in price.
- Zones of Interest: These gaps are marked as zones of interest, which can act as potential price reversal or continuation points.
- Inpulse Confirmation: Gaps (FVG) are only considered valid when the optimized volatility meter confirms an overbought or oversold condition, thus filtering out signals less likely to be effective.
- Identificación
- blue color bullish signal
- red color bearish signal
RECOMMENDATIONS
Indicator Configuration:
- Volatility periods: you can adjust the period depending on the volatility of the asset and the time frame you are analyzing.
- FVG Detection: Make sure you set the parameters correctly to detect significant gaps that truly represent imbalances in the market.
- Short Term: For intraday trading, use shorter time frames such as 5 minutes, 15 minutes or 1 hour.
- Medium and Long Term: For swing trading or long-term positions, consider using longer time frames such as 4 hours, daily or weekly.
Entry and Exit Strategies:
- Reversal Entry: Enter short positions when the indicator detects a bullish FVG. Enter long positions when you detect a bearish FVG.
- Risk Management: Set stop-loss levels above the recent FVG high for short positions and below the recent FVG low for long positions.
- Take Profit: Consider setting take profit targets at nearby support or resistance levels or use a fixed risk/reward ratio (e.g. 1:2).
Validation and Optimization :
- Backtesting: Perform historical tests to validate the effectiveness of the indicator and adjust parameters according to the results.
- Forward Testing: Test the indicator on a demo account or with small positions before implementing it on a live account to ensure its effectiveness in live market conditions.
The Effective Momentum GAP DETECTOR indicator is a powerful tool for traders looking to take advantage of confirmed market imbalances. By combining the identification of fair value gaps with volatility, this indicator provides more accurate and reliable trading signals. Be sure to follow the recommendations for its use and optimization to maximize its effectiveness in your trading strategies.
This indicator is used in all times and in all types of markets such as stocks, futures, forex, cryptos, additionally it can be used in different time periods: hours, daily, weekly, etc.
It is very good for binary options.
