Fractal Momentum Volatility Breakout (FMVB)

Family: breakout · Regime: high_vol · Complexity: high · Asset classes: FX, Equities, Commodities · Timeframes: H1, H4, D1

Thesis

Market structural breaks (fractals) are more likely to result in sustained moves when accompanied by positive momentum and expanding volatility, whereas breakouts in low-volatility regimes are typically mean-reverting noise.

Components

• V7 History Fraction Near Zero Probe (regime) — Acts as a 'System Integrity Filter' to ensure the execution engine is correctly referencing historical data before permitting trade execution.
• Momentum (Example) (direction) — Provides the directional bias; requires price to be moving at an accelerated rate relative to its 14-period history.
• Trend Break Fractal (entry) — Serves as the primary breakout trigger based on structural trendline violations between consecutive swing highs/lows.
• Bollinger Bands (Standard) (exit) — Provides a mean-reversion target for exits, capturing the 'volatility exhaustion' phase of a trend.
• Williams Fractals (risk) — Determines the initial stop-loss placement based on the most recent confirmed 5-bar swing extreme.
• Arrows Indicator Template (confirmation) — Used as a final 'bar-close' confirmation to ensure the breakout candle maintains its directional integrity before entry.
• Average True Range (NNFX Version) (volatility_filter) — Filters out low-volatility environments where fractal breakouts are prone to false signals (whipsaws).

Known failure conditions

• Consecutive losses during narrow Bollinger Band 'squeezes' where ATR is low.
• Breakout signals occurring without momentum confirmation (Momentum ≈ 100).
• System failure if the V7 Probe returns null/error, indicating engine referencing instability.

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