A Friday Trading Signal Based on the Previous Day’s Candle
Summary
This indicator description outlines a weekday-specific trading rule called the Friday effect. It uses the previous day’s daily candle to determine direction: after a rising candle, it opens a long position on Friday at a configurable hour; after a falling Thursday candle, it opens a short. A second configurable hour sets when the position closes. Indicator arrows mark entries and circles mark exits.
The document describes signal logic and intended chart display, not a tested trading strategy. It provides no performance statistics, market selection, risk controls, transaction-cost assumptions, or evidence that the weekday effect persists. It also states that the indicator is limited to chart timeframes of one hour or less. The rule’s direction depends on the prior candle, while execution timing is set by user inputs, so results may vary with those settings and the instrument traded.
Key ideas
- The rule uses the previous day’s candle direction to choose a Friday trade direction.
- A rising prior candle triggers a long entry at a user-set hour, while a falling Thursday candle triggers a short.
- A separate configurable hour determines when the position closes.
- The indicator marks entries and exits visually on the chart.
- It is intended for timeframes of one hour or less and includes no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.