Elliott-Motive Impulse Scalpel

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equities, Indices · Timeframes: M15, H1

Thesis

Market impulses (Elliott Waves 3 and 5) represent the highest probability zones for trend following because they reflect mass psychological participation. By filtering these phases through momentum (ASH) and verifying institutional 'footprints' (RVOL), we can isolate high-conviction entries. The OptionX trigger provides a structural entry timing that standard oscillators lack, while the TSI_CD allows for capturing the majority of the move before the inevitable corrective phase.

Components

• Elliott Wave [LuxAlgo] (regime) — Used as a macro-regime filter to ensure the trade is taken during motive impulse phases (Wave 3 or 5) rather than corrective phases.
• Absolute Strength Histogram (ASH) (direction) — Determines the underlying momentum bias; only longs are taken if the ASH (Bulls - Bears) is positive.
• Legacy Trading Connector (OptionX) (entry) — Acts as the final execution trigger, capturing specific structural 'Arrow' signals that align with the broader regime.
• TSI Convergence Divergence (TSI_CD) (exit) — Provides the exit signal via histogram exhaustion, identifying when the momentum of the impulse wave is decelerating.
• RVOL (Relative Volume) (risk) — Determines position size and validates entry; trades are only valid during high relative activity to avoid low-liquidity whipsaws.
• MACD Classic (confirmation) — Confirming oscillator to ensure trend convergence before the structural entry trigger is fired.

Known failure conditions

• Price invalidates the Elliott Wave sequence by Wave 4 entering Wave 1 territory.
• RVOL remains below 1.0 for extended periods during price expansion, suggesting a lack of institutional participation.
• TSI_CD fails to cross zero during significant price reversals due to double-smoothing lag.

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