Discussing the article: "Larry Williams Market Secrets (Part 10): Automating Smash Day Reversal Patterns"
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Check out the new article: Larry Williams Market Secrets (Part 10): Automating Smash Day Reversal Patterns.
We implement Larry Williams’ Smash Day reversal patterns in MQL5 by building a rule-based Expert Advisor with dynamic risk management, breakout confirmation logic, and one trade at a time execution. Readers can backtest, reproduce, and study parameter effects using the MetaTrader 5 Strategy Tester and the provided source.
In Larry Williams’ framework, a smash day is a session in which price appears to break decisively beyond the recent price structure, triggering strong emotional participation from the public. This break convinces traders that a new trend has begun. Stops are hit, breakout orders are filled, and confidence peaks or collapses in a single day.
A smash day is defined by how the price closes relative to prior bars. On the downside, it closes below prior lows. On the upside, it closes above prior highs. What makes this day special is not the direction of the move, but the emotional response it creates. Traders act as if the market has revealed its true intent.
These days represent emotional extremes because they force people to make decisions. Fear pushes sellers to exit or sell short aggressively. Greed pulls buyers into late breakouts. The market appears to offer certainty, and that illusion is what creates opportunity.
This is where smash days differ from classical breakout patterns. Traditional breakouts assume follow-through. Smash days question it. Larry Williams observed that many strong-looking breakouts fail quickly. When that failure happens immediately, the emotional traders who acted on the breakout are suddenly trapped. That trap is the foundation of the reversal.
Smash Day Buy Reversal Logic
A smash-day buy-reversal begins with a downside shock.
Price closes below the lows of one or more prior bars, suggesting that selling pressure has finally overwhelmed the market. To most traders, this looks bearish and convincing. Stops are triggered, and short positions are added late in the move.
Author: Chacha Ian Maroa