Structural Gap Momentum Filter

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Indices, Equities · Timeframes: H1, H4

Thesis

Price gaps that align with the prevailing market structure (ZigZag) and macro-trend (SilverTrend) represent high-conviction imbalances. By filtering for volatility 'thickness' (Ichimoku) and momentum quality (RSX), we isolate gaps likely to lead to sustained continuations rather than immediate 'gap fills.' The edge relies on the behavioral urgency of traders trapped on the wrong side of a structural pivot.

Components

• SilverTrend Sv2 (regime) — Establishes the macro-regime using range-based price levels to ensure we only trade in high-probability trend environments.
• ZigZag Color (Classic) (direction) — Determines the current market structure direction (bullish or bearish swing) to align entry with the dominant flow.
• MindTheGap (entry) — Acts as the execution trigger, identifying sudden imbalances in order flow (gaps) that suggest urgent price discovery.
• Donchian Channels (DC) (exit) — Provides a trailing volatility-based exit that allows winning trades to run until price breaks the cycle of local highs/lows.
• ZigZag+ v5 (risk) — Identifies the most recent structural pivot (HH/HL/LH/LL) for precise, structure-based stop loss placement.
• Corrected RSX (confirmation) — Filters out noise and ensures the momentum of the gap move is sustained and not already exhausted.
• Modern Ichimoku Cloud [GBB] (volatility_filter) — Filters out 'dead' markets by ensuring that cloud thickness (volatility) is in the top percentiles, preventing entry during low-liquidity gaps.

Known failure conditions

• Price repeatedly fills the entry gap within 3 bars, indicating exhaustion rather than continuation.
• Volatility grade drops below the 10th percentile during a trade, leading to sideways chop.
• ZigZag+ v5 structural levels are breached immediately after entry (invalidating the breakout).

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).