Gap Fill MACD Reversal

Daily Gap Reversion Strategy
This strategy identifies and trades opening price gaps, anticipating a return (or “fill”) back to the previous day’s close. It is built around the idea that markets often retrace toward unfilled price imbalances, especially after emotional or illiquid opens. Ideal for daily charts and markets with frequent gaps such as stocks, indices, or specific crypto pairs.

Strategy Logic:
Gap Up:

Occurs when current open > previous close,

AND the difference exceeds a user-defined threshold (default: 3%)

Gap Down:

Occurs when current open < previous close,

AND the drop exceeds the same threshold

Once a gap is detected, the bot enters a position in the opposite direction, aiming to "fill" the gap and revert to the previous close level.

Entry Conditions:
Long Entry:
When a gap down is detected and no active position exists

Short Entry:
When a gap up is detected and no active position exists

 Exit Logic:

The position is closed when the price returns to (or beyond) the previous close, effectively “filling” the gap.  This keeps the logic simple, mechanical, and focused purely on price reversion.  

Visual Features:

Gray line: Previous day’s close  Green label (Gap↓): Gap down detected  Red label (Gap↑): Gap up detected These visuals provide an at-a-glance view of gap zones and trade activity.  

Strategy Details:

Minimum Gap %: Customizable threshold (default 3%)  Pyramiding: Off by default — only 1 position at a time  Commission: Includes 0.05% for realistic modeling.  

Suggested Use Cases:

Best suited for daily timeframes (1D candles)  Most effective in assets where gaps occur frequently, such as:  Stocks (especially post-earnings or macro news)  Indices (e.g., SPX, NASDAQ)  Crypto pairs with strong overnight volatility.  

Final Notes:

While gap fills can offer high-probability setups, not every gap gets filled — especially during trending markets or news-driven moves. It’s essential to test each asset individually and consider stop-loss logic if needed.  Note: Different assets may require specific parameter adjustments. Users are responsible for optimizing the strategy settings for the asset they trade. Please ensure you fine-tune the parameters according to your trading pair.