Box-Wave IIR Momentum Breakout

Family: breakout · Regime: trending · Complexity: high · Asset classes: Equities, Forex, Crypto · Timeframes: H1, H4

Thesis

Market trends often begin with a volatility squeeze followed by a structural breakout. By combining Boxline (structural range), SAK (cyclical energy), and Elliott Wave (cycle positioning), we can isolate the high-probability 'Wave 3' impulse. The edge relies on the behavioral tendency of price to trend once a consolidated range is breached with volume and momentum confluence.

Components

• Boxline (Dynamic Range Breakout) (regime) — Defines the high-level regime by establishing structural support/resistance zones based on price action breakouts.
• Custom 006 Hybrid Table Scanner (direction) — Filters for confluence between trend (EMA) and volume expansion to ensure the breakout has momentum.
• Donchian Channels (DC) (entry) — Acts as the execution trigger; price breaching the 20-period extreme signals the actual expansion phase.
• Chandelier Exit Heiken Ashi Variant (exit) — Provides a dynamic trailing stop that reacts to volatility-adjusted price reversals.
• Elliott Wave [LuxAlgo] (risk) — Uses ZigZag-based wave structures to determine trade validity (e.g., only entering on Wave 3 or 5) and calculating risk-to-reward.
• TRIX (confirmation) — Filters out noise through triple-smoothing, ensuring the momentum direction aligns with the price breakout.
• Swiss Army Knife Indicator (SAK) (volatility_filter) — Utilized in BandPass (BP) mode to ensure the market is in a cyclical expansion phase rather than a low-volatility squeeze.

Known failure conditions

• Successive failed breakouts where Boxline range shifts without price follow-through (whipsaw).
• Elliott Wave counts frequently 're-labeling' during active trades, indicating a non-trending structure.
• SAK BandPass remaining flat/near-zero during price movements, suggesting lack of cyclical energy.

Explore the full interactive blueprint, parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine.