Monday Weakness notes that equities often open lower after the weekend as traders digest news and reposition.
Short-term bearish pressure can appear at the start of the week before markets stabilize.
The strategy sells short at Monday's open and covers by the close, seeking to profit from that initial softness.
Stops are kept narrow to avoid losses if the market bucks the tendency and rallies instead.
Entry Criteria: calendar effect triggers
Long/Short: Both
Exit Criteria: stop-loss or opposite signal
Stops: Yes, percent based
Default Values:
CandleType = 15 minute
StopLoss = 2%
[*]Filters:
Category: Seasonality
Direction: Both
Indicators: Seasonality
Stops: Yes
Complexity: Intermediate
Timeframe: Intraday
Seasonality: Yes
Neural networks: No
Divergence: No
Risk level: Medium