Post-Holiday Weakness is the tendency for prices to drift lower immediately after a major holiday when volume remains thin.
With many participants still away, counter-trend moves can gain traction.
The strategy sells short the day after a holiday and covers quickly once normal participation returns.
A small stop is used to avoid excessive losses during low-liquidity trading.
- 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