EVZ-IAE Confluence & Round Level Liquidity Strategy

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Forex (EUR/USD focus) · Timeframes: H1, H4

Thesis

Market inefficiency exists when price movement is 'easy' (low resistance in EOM) and confirmed by institutional confluence (IAE), provided that forward-looking volatility (EVZ) is stable and the price is reacting to psychological barriers (Round Levels). The edge relies on the behavioral tendency of price to 'gravitate' toward round numbers once momentum is established.

Components

• Unsupported Array Sum UDT Test (regime) — Acts as a 'null hypothesis' regime filter; since the code is invalid for UDT summation, it represents a manual override or fixed structural 'Point' check to ensure the environment supports complex data structures before execution.
• Ease of Movement (EOM) (direction) — Determines the path of least resistance by measuring if price movement is supported by light or heavy volume.
• IAE — Technical Confluence Score (entry) — Provides the primary entry trigger by requiring a high aggregate score (>70) across 10 technical layers.
• MACD (exit) — Used for exit timing based on histogram reversals and signal line crosses.
• Round Levels Zone Shading (risk) — Sets hard stops and profit targets based on institutional 'big figure' zones where liquidity clusters.
• MACD Classic (3-Line) (confirmation) — Confirms the IAE trigger by ensuring momentum is aligned with the entry direction.
• Euro FX VIX (EVZ) Data Loader (volatility_filter) — Prevents trading during extreme expected volatility spikes (>90th percentile) or during periods of 'volatility crush' where the data is unavailable.

Known failure conditions

• External EVZ data feed fails to update for >24 hours.
• Price ignores Round Level zones consistently for 5 consecutive trades (liquidity shifts).
• IAE Confluence Score remains above 70 during a 10% price drawdown (signal lag).

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