Ghost Gap Momentum Hybrid

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Equities, Forex, Crypto · Timeframes: H1, H4, D1

Thesis

The strategy assumes that price gaps in the direction of a statistically significant regression channel (Ghost Channels) and a moving average (SMA) represent high-conviction institutional flow. By entering these 'momentum bursts' and exiting at the first sign of local exhaustion (Fractals), we exploit the tendency of trends to move in staccato impulses rather than smooth lines, while the Chandelier Exit protects against sudden trend failure.

Components

• Ghost Channels [mph1nance] (regime) — Defines the structural boundaries and ensures the trade occurs within a statistically valid trend with a specific 'Urgency' ceiling to avoid blow-off tops/bottoms.
• Simple Moving Average (SMA) (direction) — Acts as the primary trend filter to ensure entries align with medium-term price inertia.
• MindTheGap (entry) — Provides the momentum trigger; gaps in the direction of the trend often signify a 'runaway' phase or a burst of volatility that can be exploited.
• FractalScanner (exit) — Identifies local exhaustion points (swing highs/lows) to capture the meat of the move before a reversal occurs.
• Chandelier Exit (risk) — Provides a volatility-adjusted trailing stop to protect capital and lock in profits as the trend evolves.

Known failure conditions

• High frequency of gaps that are immediately filled (exhaustion gaps) rather than followed (runaway gaps).
• Ghost Channel R2 dropping below 0.3, indicating market structure has broken down into noise.
• Price oscillating around the SMA and Chandelier line in a low-volatility 'squeeze'.

Explore the full interactive blueprint with parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine (free download).