Pre-Holiday Strength refers to the bullish tendency just before major market holidays when volume is lighter and sentiment optimistic.
Traders often position ahead of the break, pushing prices higher in the final session or two.
The strategy goes long on the day before a holiday and exits the following session or at the close, capturing that short-term bias.
A tight stop is used in case the expected lift doesn't occur.
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