The idea behind the streak is to check what happens at a specific period after a streak event. A streak is the continuous successive movement up or down over a defined period.

Setup Filter takes the available data after the default starting date 01.01.2010 for the preferred time frame. Traders set the Streak Length, which is the continuous successive movement up or down over a defined period. The Checkpoint refers to the number of the bars that traders want to monitor after the criteria are met.

A Streak’s case study

We examine what happens to the major FX pairs 12-hours after 3 successive 4-hours down moves.

According to the following table, the historical statistics are very encouraging.

Overall, analyzing the available historical data after 2010.01.01, we see that a 12-hours falling streak has resulted in positive % change in all prices’ instruments on average (Mean) 12-hours after the 12-hours streak.

Analyzing the EURUSD symbol, we see that the study contains 43670 bars and 618 streaks since 2010.01.05. According to the statistics, we see that the last streak resulted in a positive 0.21% change. Looking at the mean % change and median % change, we see that both were positive (0.14% and 0.10% respectively).

By clicking on the EURUSD symbol, we can get the graph with the study’s results as below (only available in MT5).