Trading Hidden Smash Day Reversals with Trend and Risk Filters
Summary
The article turns Larry Williams’ Hidden Smash Day pattern into explicit Expert Advisor rules. A setup is identified on a completed bar, then requires the next bar to close beyond the setup bar’s high for a long or below its low for a short. The EA reads signals from a separate indicator and evaluates conditions only when a new bar opens, aiming to make signal handling reproducible.
Optional filters control trade direction, Supertrend alignment, and allowed weekdays. Stops can be placed at the setup bar’s opposite extreme or set using an ATR multiple; profit targets use a configurable reward-to-risk ratio. Position size may be fixed or calculated from a chosen account-balance risk percentage, and the system allows only one active position at a time. The document presents a modular framework for studying the pattern, but supplies no performance results in the provided text. Its claims about testability do not establish profitability; outcomes would depend on instrument, timeframe, execution costs, and validation choices.
Key ideas
- A Hidden Smash setup becomes tradable only after a subsequent completed bar confirms a break of its extreme.
- The EA separates pattern detection in an indicator from filtering and trade execution.
- Supertrend and weekday settings can restrict which confirmed signals are eligible.
- Stops use either the setup bar structure or an ATR-based distance, with targets set by reward-to-risk ratio.
- Risk-based sizing and a single-position rule define trade exposure and overlap.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.