Weekly Gap-Flow Confluence System

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Forex, Equity Indices, Commodities · Timeframes: H1, H4

Thesis

Sunday gaps indicate institutional sentiment shifts occurring during market downtime. This strategy hypothesizes that if a gap is supported by high relative volume (RVOL) and high-confluence technical alignment (IAE) within the first 48 hours of the week, it represents a 'smart money' flow that will persist until price efficiency (as measured by KAMA) breaks down. The inclusion of Ehlers NET (Kendall Tau) ensures that the move is a persistent trend rather than a high-volatility noise event.

Components

• Sunday Opening Gap (regime) — Establishes the weekly bias; if price stays on the gap-side of Friday's close, the market structure is considered to be in an 'extension' regime.
• Trend Intensity Index (TII) (direction) — Filters for directional intensity, ensuring the entry is aligned with the stronger side of the 60-period (2n) mean deviation.
• IAE — Technical Confluence Score (entry) — Acts as the final execution trigger by requiring at least 7/10 technical layers (momentum, flow, etc.) to align before entry.
• MultiKAMA (TyphooN) (exit) — Adaptive exit mechanism that tightens during high-efficiency moves and widens during noise, protecting against premature stops.
• RVOL (Relative Volume) (risk) — Provides the validation of institutional participation. Used to scale position size based on the strength of the breakout.
• Ehlers Noise Elimination Technology (NET) (confirmation) — Uses Kendall Tau rank correlation to confirm that the trend is not just high-intensity (TII) but also statistically 'low noise'.

Known failure conditions

• Successive 'Gap and Crap' patterns where price gaps but immediately reverses through Friday's close.
• Prolonged low RVOL environments (<1.0) suggesting a lack of institutional interest in the weekly direction.
• IAE Confluence scores hovering between 40-60 for more than 48 hours, indicating a 'choppy' market.

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).