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