Discussing the article: "Price Action Analysis Toolkit Development (Part 73): Building a Weekend Gap Trading Signal System in MQL5"

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Check out the new article: Price Action Analysis Toolkit Development (Part 73): Building a Weekend Gap Trading Signal System in MQL5.

We extend the weekend gap toolkit with an indicator that turns gap structure into tradeable signals. When price confirms back into the gap, the indicator issues buy/sell arrows, sets TP at the opposite edge, and places SL using current-week extremes. It maintains non-repainting behavior, reconstructs historical signals, updates live, and provides EA-ready buffers for entry markers and TP/SL to support automation.

Recap from Previous Article

In the previous article of this series, we introduced a gap-fill strategy that generated signals only after the weekend gap had been fully closed. The indicator waited for price to move across the entire gap and reach the prior Friday close before confirming the setup. Once the gap was filled, the strategy anticipated a potential reversal from that level. A gap-down scenario was therefore treated as a potential bearish reversal after the fill was completed, while a gap-up scenario was treated as a potential bullish reversal after the fill was completed.

However, the gap-filling process itself can also be viewed as a trading opportunity. Rather than waiting for the gap to be fully closed before taking action, traders may seek to participate in the expected movement toward the fill. Under this interpretation, weekend gaps can be traded in two ways:

  • Bullish Gap Trade—If Monday opens below the previous Friday close, creating a gap down, the expectation is that price will move upward toward the Friday close to fill the gap.
  • Bearish Gap Trade—If Monday opens above the previous Friday close, creating a gap up, the expectation is that price will move downward toward the Friday close to fill the gap.

Author: Christian Benjamin

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