Turbulence-Filtered Strength Gap Strategy

Family: breakout · Regime: trending · Complexity: high · Asset classes: Forex, Indices, Equities · Timeframes: H1, H4, D1

Thesis

Price gaps are high-conviction signals when they occur in low-turbulence regimes (measured by MA cross frequency) and are confirmed by relative currency strength, as they represent a breakout from a period of stability into a new trend.

Components

• Market Weather Price MA Cross (regime) — Sets the 'Turbulence' filter. We assume gaps are more reliable signals in low-turbulence (low cross count) regimes where trend persistence is higher.
• Supported map history (direction) — Provides a directional bias based on the relationship between current price and the previous bar's mapped state.
• MindTheGap (entry) — Acts as the primary trigger; it identifies sudden liquidity imbalances or sentiment shifts that manifest as price gaps.
• Pivot Point S&R with GMT Correction (exit) — Provides objective liquidity targets (S1/R1) for profit taking based on daily volatility cycles.
• Chandelier Exit Heiken Ashi Variant (risk) — Uses a hyper-sensitive trailing stop based on Heiken Ashi smoothed price to protect capital against sudden gap reversals.
• Currency Strength Matrix (All) (confirmation) — Confirms the individual strength of the base vs. quote currency to ensure the gap aligns with broader market momentum.

Known failure conditions

• If Market Weather Count remains high (>20) for extended periods, indicating a permanent shift to high-frequency chop.
• If the Currency Strength Matrix returns 0 or identical values for all pairs (placeholder logic failure).
• If price consistently gaps through the Chandelier Exit before orders can be executed in high-volatility events.

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