Fibonacci Momentum Reversion (FMR)

Family: pullback · Regime: trending · Complexity: medium · Asset classes: FX, EQUITIES, CRYPTO · Timeframes: H1, H4

Thesis

Market trends are characterized by 'bursts' of momentum followed by retracements. By using ADX to identify high-probability trend phases and Auto Fibonacci to identify price-level stalls, we enter the market at a discount. The Waddah Attar Explosion then acts as a sophisticated trailing exit that differentiates between normal noise and actual trend exhaustion (Bollinger-standardized momentum).

Components

• MQL4 Minimal Sample Indicator (regime) — Ensures the terminal has loaded sufficient historical data for the Auto Fibonacci and ADX indicators to calculate stable values (warm-up regime).
• ADX / Connectable [Azullian] (direction) — Establishes the macro-directional bias and ensures the market is in a high-strength trending phase before considering retracements.
• Auto Fibonacci (entry) — Identifies price-level clusters for entries; specifically looking for mean-reversion pullbacks within the established ADX trend.
• Waddah Attar Explosion (WAE) (exit) — Used to identify momentum exhaustion. When the explosion line drops below the threshold or the histogram color changes, it signals a trend pause.
• FractalScanner (risk) — Provides objective structural swing highs and lows for hard stop-loss placement, anchored to market geometry.
• ATR SL Finder (volatility_filter) — Acts as a volatility gatekeeper; if ATR is below a 20-period moving average of itself, the environment is considered too stagnant for trend-following.

Known failure conditions

• ADX remains below 20 for extended periods, leading to 'death by a thousand cuts' in ranging markets.
• The Auto Fibonacci indicator fails to redraw during rapid parabolic moves, missing entry points.
• Price consistently breaches the Fractal stop-loss before the WAE momentum signal can trigger an exit.

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