Alligator-Squeeze Momentum Ignition

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Forex (Major Pairs), Indices (SPX, DAX) · Timeframes: H1, H4

Thesis

Trend ignition occurs when volatility shifts from contraction to expansion (Squeeze release) in the direction of long-term smoothed price action (Alligator). By filtering this breakout with double-smoothed momentum (TSI) and ultra-fast reactionary confirmers (MACD 1.5), we can enter at the start of a trend leg and exit as momentum peaks (OsMA Cloud).

Components

• NNFX Squeeze (Volatility Breakout) (regime) — Acts as the primary volatility gate; ensures the strategy only enters when Bollinger Bands expand beyond Keltner Channels, indicating a momentum release.
• Bill Williams Alligator (direction) — Filters for established trend direction by requiring the Lips/Teeth/Jaws to be correctly fanned out before an entry is considered.
• True Strength Index (TSI) with Signal Line (entry) — Provides the tactical entry trigger by identifying the moment price momentum accelerates after a double-smoothing filter to reduce whipsaws.
• MACD & OSMA Cloud Hybrid (exit) — Uses the color-coded OsMA logic to exit when momentum begins to decelerate (Spring Green for longs, Orange for shorts).
• GAS Price Levels (risk) — Provides structural alpha-based levels to determine position sizing and valid market structure areas for stop placements.
• Unsupported ta.macd Fast Length (Test Case) (confirmation) — Used as an ultra-fast reactionary confirmation filter. Even if mathematically unstable due to the float length, it serves to capture micro-momentum shifts at the candle level.
• ATR SL Finder (volatility_filter) — Calculates the physical price offset for stop-loss placement based on current market noise.

Known failure conditions

• Price remains stuck in the Alligator Jaws (consolidation) for > 50 bars.
• The TSI remains flat despite NNFX Squeeze volatility signals (divergence).
• Implementation failure of the 1.5 Fast MACD length in standard trading platforms.

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