Fading NQ Volume Spike Bars with Reaction-Bar Limit Orders

Summary

This NQ futures strategy seeks reversals after unusually high-volume, wide-range bars. It places symmetric limit orders just beyond the reaction bar’s high and low, aiming to enter when price snaps back toward the bar’s middle. The first order filled takes the trade; an OCA arrangement cancels the opposite order, and the signal bar is locked after exit to prevent another entry from the same event.

The excerpt describes filters for absolute and relative bar range, spike clustering, and optional candle-body shape, along with configurable entry and exit geometry. It identifies a one-minute NQ setup and specifies commission, slippage, and margin assumptions. However, the supplied source ends partway through the geometry inputs, and no strategy report or performance results are included. The stated design and settings therefore do not establish profitability; backtests would also depend on intrabar fill handling, with the excerpt specifically cautioning that aggressive close targets need Bar Magnifier.

Key ideas

• The setup identifies reaction bars using abnormal volume and an unusually wide range.
• Symmetric limit orders beyond both bar extremes attempt to capture a snap-back toward the bar’s midpoint.
• The first filled order cancels its opposite, and the reaction bar is locked after exit.
• Range, clustering, and optional body-shape filters control which bars qualify.
• The excerpt gives execution assumptions but contains no performance results and ends before the full trade geometry is shown.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.