RSIOMA Gap-Force Trend Continuation
Family: trend_following · Regime: trending · Complexity: medium · Asset classes: FX Majors, Equities, Indices · Timeframes: M5, M15
Thesis
This strategy hypothesizes that price gaps occurring in the direction of a volume-confirmed trend represent institutional 'breakaway' momentum rather than exhaustion. By filtering these gaps with a double-smoothed RSI (RSIOMA) and an ultra-short-term MA cross (t_ma), we identify entries with high immediate follow-through. Risk is managed through structural session boundaries (TimeBlocks) to avoid stop-outs from intraday mean reversion.
Components
- RSIOMA (RSI of Moving Average) (regime) — Filters out noise by ensuring the medium-term momentum is aligned with the trade direction. Values above/below 50 provide the primary trend regime.
- t_ma (direction) — Provides immediate, short-term directional confirmation based on the most recent 11 bars to ensure the micro-trend is active.
- MindTheGap (entry) — Acts as the volatility catalyst; a gap indicates a sudden shift in supply/demand which acts as the entry trigger when aligned with indicators.
- Qualitative Quantitative Estimation (QQE) (exit) — Uses the volatility-adjusted trailing level (DAR) to capture as much of the move as possible while exiting on momentum exhaustion.
- TimeBlocks (Multifunctional Period Separator) (risk) — Defines the structural boundaries for risk; stop losses are anchored to the session/block highs and lows to prevent being stopped out by noise.
- Force Index (NNFX Variant) (confirmation) — Ensures price movements are backed by volume/force, filtering out low-liquidity gap "traps".
Known failure conditions
- t_ma calculation limit prevents the strategy from generating signals for more than 11 bars if the chart is not actively updating.
- The strategy fails in 'Grinding' markets where price moves without gaps or volume spikes.
- QQE trailing levels being hit prematurely during high-volatility news events (e.g., NFP).
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