Fractal Momentum UDT Breakout

Family: breakout · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: 1H, 4H, D1

Thesis

Market breakouts from Williams Fractals represent a release of compressed local liquidity. When these breakouts align with a positive point-delta regime (UDT Slope) and positive momentum (CCI) during high volatility (ATR), they are more likely to result in a sustained trend than a mean-reversion event. Profit is taken at momentum exhaustion (RSI), and risk is managed via Fibonacci retracements which represent natural psychological support/resistance levels.

Components

• Imported UDT typed UDF params Test (regime) — Used as a slope-based regime filter to ensure the underlying price delta (defined in the test logic) aligns with the trade direction.
• CCI Arrows (direction) — Provides the primary directional bias; zero-line crosses indicate a shift in medium-term momentum.
• Williams Fractals (entry) — Identifies local liquidity zones. Entry occurs on a breakout of the fractal high/low, accounting for the 2-bar confirmation lag.
• RSI Area (Histogram) (exit) — Used as a mean-reversion exit signal when the histogram reaches overbought/oversold extremes.
• Auto Fibonacci (risk) — Determines dynamic stop-loss placement based on the 61.8% retracement level of the current price swing.
• Average True Range (ATR) (volatility_filter) — Acts as a volatility gate to ensure breakouts occur during periods of expanding market range.

Known failure conditions

• Persistent sideways price action where price oscillates between fractal levels without hitting RSI extremes.
• Market environments where ATR remains below its 50-period average for extended periods.
• Failure of the UDT library logic to handle non-standard price gapping.

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