Daily Range Expansion & Structural Momentum Hybrid

Family: breakout · Regime: trending · Complexity: medium · Asset classes: FX, Indices, Equities · Timeframes: H1, M15

Thesis

Market participants cluster orders around previous day's highs and lows. A breakout of these levels, when verified by a 80-period linear regression trend and a surge in ATR-relative volatility, indicates a transition from a low-energy state to a high-energy trend expansion that persists until short-term momentum (Stochastic) reaches extreme exhaustion.

Components

• Daily High Low (regime) — Establishes the previous day's liquidity boundaries; a breakout above/below these levels signals a shift in market structure.
• Frankenstein Ultimate Pro - ATM Logic (direction) — Ensures the entry occurs within a high-volatility environment (ATR filter) and aligns with the dominant linear regression trend (LSMA).
• MACD (entry) — Acts as the precision trigger to ensure momentum is accelerating in the direction of the breakout.
• Stochastic Oscillator (exit) — Identifies local momentum exhaustion to exit trades before mean reversion occurs.
• Supply & Demand Zones (NNFX) (risk) — Provides structural price anchors for stop-loss placement based on institutional order flow pockets.

Known failure conditions

• Consecutive 'fake-outs' where price breaks the DHL level but immediately reverses into the prior day's range.
• Realized volatility (High-Low) stays consistently below the 1.2x ATR threshold for extended periods.
• The LSMA (Linear Regression) stays flat while price oscillates through it, indicating a range-bound market.

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