GEX-Gap Momentum Validator

Family: breakout · Regime: trending · Complexity: high · Asset classes: Equity Indices (NQ, NDX, QQQ) · Timeframes: 5m, 15m

Thesis

In the Nasdaq (NQ), price gaps occurring in alignment with significant Gamma Exposure (GEX) levels represent institutional liquidity imbalances. When price gaps above a Zero Gamma wall, market makers are forced into 'gamma-positive' hedging (buying as price rises), creating a self-reinforcing momentum loop. By confirming these gaps with a technical system check (Drawing Property Getter) and immediate bar-to-bar price direction (Buddha), we can capture high-probability expansion moves before they are exhausted by mean reversion, as signaled by the Connect MACD.

Components

• Drawing Property Getter Test (regime) — Serves as a 'system health' check; ensures that Breakout Structure (BOS) labels and lines from the GEX component are properly instantiated and retrievable before a trade is committed.
• Buddha Price Line (direction) — Provides the final directional confirmation; ensures the immediate bar-to-bar momentum is aligned with the entry direction.
• MindTheGap (entry) — The primary trigger; identifies institutional liquidity imbalances that manifest as price gaps, suggesting an urgent repricing event.
• Connect MACD (Azullian) (exit) — Used as a momentum-based exit to capture the meat of the post-gap trend while exiting before full mean reversion occurs.
• VWAP + EMA Cross Pullback (risk) — Provides the risk management framework, specifically using the ATR-based stop loss and VWAP-aligned position sizing.
• GEX Levels + Breakout Structure + Session AVWAP — NQ/NDX/QQQ (volatility_filter) — Provides the primary volatility filter; trades are only permitted when price is on the 'correct' side of the Zero Gamma level, which dictates the expected volatility expansion or suppression.

Known failure conditions

• Price consistently ignores GEX 'Walls' (Gamma Zero/Max Pain), indicating the external options data is stale or incorrect.
• MindTheGap triggers frequently within tight ranges (e.g., < 5 points), suggesting high slippage rather than structural imbalance.
• The Drawing Property Getter fails to retrieve BOS coordinates, preventing the regime filter from validating market structure.

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