Hidden Smash Day Reversals and Confirmation Rules

Summary

The article describes Hidden Smash Day patterns, a reversal setup built around disagreement between a bar’s close versus the prior bar and the location of that close within its own range. A potential buy bar closes above the previous close but finishes in the lower part of its range; a potential sell bar closes below the previous close but finishes in the upper part. The article interprets these shapes as evidence that an attempted move was rejected during the session.

For confirmation, the next bar must close above the setup bar’s high for a buy or below its low for a sell. A custom MQL5 indicator can mark either the setup bar alone or wait to mark only confirmed patterns, with arrows on the chart. This describes pattern identification and display, not a complete trading plan: it gives no entry, stop, position-sizing or exit rules, and reports no backtest or profitability evidence. The method therefore needs independent testing across instruments and timeframes before its signals can be assessed.

Key ideas

• A buy setup combines a higher close than the previous bar with a close in the lower portion of its range.
• A sell setup combines a lower close than the previous bar with a close in the upper portion of its range.
• Confirmation requires the next bar to close beyond the setup bar’s high or low in the reversal direction.
• The custom indicator can mark initial setups or wait for confirmation before plotting signals.
• The article does not provide trading management rules or performance evidence.

Tags

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