Cyclical Sweep & Wave Alignment System

Family: hybrid · Regime: high_vol · Complexity: high · Asset classes: FX (Majors), Indices (NASDAQ, S&P500), Crypto (BTC/USD) · Timeframes: M5, M15

Thesis

Market participants often exploit 'obvious' liquidity above/below session highs and lows (TimeBlocks) before initiating a genuine move. By identifying these 'Daily Sweeps' in the New York session and confirming the subsequent reversal with volume-weighted momentum (WaveTrend) and cyclical timing (DSP), a trader can enter with high-probability institutional alignment. This edge exists because of the 'Stop Hunt' phenomenon where retail stops provide the liquidity for institutional size.

Components

• TimeBlocks (Multifunctional Period Separator) (regime) — Establishes intraday 'fair value' via VWAP balance and identifies key horizontal boundaries (Daily/Hourly High/Low) where liquidity typically rests.
• Heiken Ashi (Standard MT5) (direction) — Acts as a primary trend filter to ensure entries are aligned with immediate momentum, reducing noise from minor price fluctuations.
• WaveTrend v3 [WavesUnchained] (entry) — Provides the execution trigger via oversold/overbought crosses, filtered by a multi-layered alignment score that includes volume and market structure.
• Ichimoku Kinko Hyo (exit) — Utilizes the Kijun-sen and Senkou Span as structural trailing exits to capture medium-term trends while exiting quickly on structural breaks.
• The Daily Sweep (risk) — Identifies institutional 'liquidity grabs' (sweeps) that often precede major reversals or expansions during the New York session.
• Ehlers Detrended Synthetic Price (DSP) (confirmation) — Confirms that the entry is occurring at a cyclical extreme (trough for longs, peak for shorts), minimizing the risk of entering late in a trend.
• ATR Stop Loss Finder (volatility_filter) — Provides a dynamic, volatility-adjusted floor (for longs) or ceiling (for shorts) for stop-loss placement and position sizing.

Known failure conditions

• Strategy loses edge if market enters a 'low-volatility drift' where ATR levels are tight but no liquidity sweeps occur.
• Failure of the WaveTrend Alignment Score to update in real-time due to HTF data latency.
• Multiple consecutive losses during a 'ranging expansion' where price sweeps both sides of the TimeBlock without direction.

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.