Heiken-Zig Institutional Gap Strategy

Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4

Thesis

The strategy assumes that price gaps occurring in the direction of a structural trend (ZigZag/Heiken Ashi) and within institutional mitigation zones represent 'smart money' momentum that will persist until cyclical exhaustion (BPF) or momentum decay (Oscillator). It bets on the persistence of volatility expansion after a structural break.

Components

• Heiken Ashi (Standard MT5) (regime) — Establishes the macro-trend consensus by smoothing price noise; ensures we only trade in the direction of momentum.
• ZigZag+ v5 (direction) — Identifies established market structure (HH/HL) to ensure the trend is structurally sound before entry.
• MindTheGap (entry) — Acts as a trigger for impulsive volatility, signaling a breakout or acceleration point.
• Momentum Oscillator (exit) — Used as an exhaustion signal; exits when the rate of change begins to decelerate.
• FakeCandle (risk) — Provides the visual anchor for NNFX-style risk management, determining SL placement based on modified candle extremes.
• Bandpass Filter (BPF) (confirmation) — Ensures entry occurs during an expansion phase of a market cycle rather than at a cycle peak.
• ICT Mitigation Block Scanner (volatility_filter) — Filters out 'noisy' gaps by ensuring they occur within the context of institutional mitigation levels.

Known failure conditions

• Price enters a prolonged tight range where Heiken Ashi alternates colors frequently.
• Gap signals occur frequently without subsequent follow-through, indicating low liquidity rather than institutional intent.
• The Bandpass Filter lags significantly during V-shaped reversals.

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