Cyclical MA-Candle Momentum Framework

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

Thesis

Market momentum is tradable when cyclical recovery (STC) coincides with a smoothed price trend (MA-Candlesticks) and occurs outside of the local equilibrium (Midpoint). By anchoring risk to institutional order blocks, the strategy captures 'smart money' momentum while avoiding the noise of raw price action.

Components

• MA-Candlesticks (regime) — Acts as the primary trend filter by smoothing price action into a synthetic OHLC format, reducing noise and defining the bullish/bearish regime.
• Schaff Trend Cycle (STC) (direction) — Identifies cyclical turns in momentum; used to ensure the entry occurs at the start of a trend cycle rather than at an exhausted peak.
• Arrows Base Template (entry) — The execution framework that fires the final buy/sell signal once all conditions from other components are synchronized.
• SML — SUPPORT/RESISTANCE MATRIX (exit) — Provides logical price targets based on validated structural pivot clusters where supply or demand is likely to reappear.
• Sonarlab - Order Blocks (risk) — Used for risk management; the boundaries of high-momentum order blocks serve as structural anchors for stop-loss placement.
• MIDPOINT: Rolling Midpoint (volatility_filter) — Acts as a mean-reversion filter; ensures that entries are taken when price has momentum away from the center of its recent range.

Known failure conditions

• STC plateaus at 100 or 0 for extended periods while price moves sideways, leading to delayed entries.
• MA-Candlesticks flip colors frequently in low-volatility environments (whipsaws).
• Order Block zones are too far from the entry point, resulting in a Reward-to-Risk ratio below 1.0.

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