Constant Range Heatmap Breakout

Family: breakout · Regime: trending · Complexity: high · Asset classes: Equities, Forex, Indices · Timeframes: M15, H1, D1

Thesis

Market momentum exists in discrete 'steps' of volatility. By identifying a shift in the Constant Range Channel (CRC) that aligns with higher-timeframe directional bias (Heatmap) and structural liquidity targets (Q-Levels), we can capture the meat of a volatility expansion. The edge relies on the behavioral tendency of price to cluster at specific 'gamma' or technical levels before transitioning to a new volatility regime.

Components

• Constant Range Channel (regime) — Defines the 'active' volatility zone. A shift in the CRC middle line signifies a breakout from a prior consolidation range.
• MTF Heatmap Template (direction) — Ensures trend alignment across H1 and D1 timeframes to filter out counter-trend noise.
• Q-Levels V2.2 (entry) — Provides high-conviction structural price targets (gamma walls/liquidity zones) to serve as triggers for entry upon touch/rejection within the CRC.
• TopTrend (BBands Stop) (exit) — Provides a dynamic trailing exit based on Bollinger Band expansion/contraction to capture trend extensions.
• ATR Heiken Ashi (risk) — Used to normalize position sizing based on smoothed volatility, reducing sensitivity to micro-whipsaws.

Known failure conditions

• The Q-Levels manual input file is not updated for more than 48 hours, leading to stale price levels.
• Price remains trapped within a single Constant Range Channel (StepTicks) for extended periods, indicating a total loss of momentum.
• The MTF Heatmap shows conflicting colors on H1 and D1 for more than 5 consecutive bars.

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