Trading Weekend Gaps with Candle-Confirmed Signals and Defined Trade Levels
Summary
The document formalizes a weekend-gap setup using Friday’s close and Monday’s open as the gap boundaries. For a gap down, it seeks a bullish candle close back above the lower boundary and targets the Friday close; for a gap up, it seeks a bearish close below the upper boundary and targets the same Friday-close boundary. The stop is based on the current week’s low for bullish trades or high for bearish trades, with an optional buffer. A minimum tradable gap size and optional confirmation offset are configurable.
The MQL5 indicator reconstructs historical signals and processes live bars after candle close, exposing buy and sell markers plus their take-profit and stop-loss values through six buffers for an Expert Advisor. The article illustrates a bullish setup and describes the indicator as non-repainting after confirmation. It does not provide a systematic backtest, win rate, or profitability evidence, and the rules express an expectation that price will fill the gap rather than a guarantee.
Key ideas
- The setup defines weekend gaps from Friday close and Monday open.
- A confirmed candle moving back into the gap triggers a signal toward the opposite gap boundary.
- Stops use the current week’s low or high, with an optional buffer, while targets use the gap boundary.
- A minimum gap size and optional confirmation offset help filter or adjust signals.
- Six indicator buffers expose signal direction and trade levels to an Expert Advisor.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.