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Gap Down Reversal Strategy

█ STRATEGY OVERVIEW
The "Gap Down Reversal Strategy" capitalizes on price recovery patterns following bearish gap-down openings. This mean-reversion approach enters long positions on confirmed intraday recoveries and exits when prices breach previous session highs. This strategy is NOT optimized.
█ What is a Gap Down Reversal?
A gap down reversal occurs when:
█ SIGNAL GENERATION
1. LONG ENTRY CONDITION
2. EXIT CONDITION
█ PERFORMANCE OVERVIEW
The "Gap Down Reversal Strategy" capitalizes on price recovery patterns following bearish gap-down openings. This mean-reversion approach enters long positions on confirmed intraday recoveries and exits when prices breach previous session highs. This strategy is NOT optimized.
█ What is a Gap Down Reversal?
A gap down reversal occurs when:
- An instrument opens significantly below its prior session's low (price gap)
- Selling pressure exhausts itself during the session
- Buyers regain control, pushing price back above the opening level
- Creates a candlestick with:
• Open < Prior Session Low (true gap)
• Close > Open (bullish reversal candle)
█ SIGNAL GENERATION
1. LONG ENTRY CONDITION
- Previous candle closes BELOW its opening price (bearish candle)
- Current session opens BELOW prior candle's low (gap down)
- Current candle closes ABOVE its opening price (bullish reversal)
- Executes market order at session close
2. EXIT CONDITION
- A Sell Signal is generated when the current closing price exceeds the highest high of the previous seven bars (`close > _highest[1]`). This indicates that the price has shown strength, potentially confirming the reversal and prompting the strategy to exit the position.
█ PERFORMANCE OVERVIEW
- Ideal Market: High volatility instruments with frequent gaps
- Key Risk: False reversals in sustained downtrends
- Optimization Tip: Test varying gap thresholds (1-3% ranges)
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免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。