Chan-Ehlers Structural Ribbon Strategy

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4, D1

Thesis

Market structure (Chan Lun) provides high-probability entry points by identifying 'hubs' of consolidation. By only taking these signals when a macro trend (MA Ribbon) and a zero-lag momentum filter (USF) are in alignment, we exploit the behavioral tendency of price to trend after breaking out of structural equilibrium, while the volume filter confirms institutional participation.

Components

• Moving Average Ribbon (chingc) (regime) — Establishes the macro-trend regime; we only trade in the direction of the expanded ribbon and the long-term averages.
• Ehlers Ultimate Smoother Filter (USF) (direction) — Provides a zero-lag directional filter to ensure the immediate momentum aligns with the macro trend.
• Chan Lun Engine (MT4 DLL version) (entry) — Identifies high-probability structural entries (2nd type pullbacks and 3rd type breakouts) relative to market hubs.
• Average True Range (NNFX Version) (exit) — Calculates the price targets for volatility-based take profits.
• Chandelier Exit (Heiken Ashi) (risk) — Provides the dynamic trailing stop-loss level and risk boundary.
• Volume Moving Average (VOLMA) (confirmation) — Confirms that the structural breakout or pullback is backed by increased tick activity.
• Average True Range (ATR) (volatility_filter) — Filters out regimes of extreme exhaustion (high percentile) or total illiquidity (low percentile).

Known failure conditions

• Chan Lun structural hubs (Zhongshu) fail to contain price during ribbon expansion.
• High frequency of Chandelier Exit flips in low-volatility environments leading to 'death by a thousand cuts'.

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