Fractal Momentum Volume-Regime Hybrid

Family: breakout · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4, D1

Thesis

The strategy assumes that significant market moves begin with a breakout of a 5-bar price extreme (Fractal) accompanied by a surge in volume and directional momentum. By using a 2-bar confirmation for Fractals and multiple momentum filters (MACD/RSI), we aim to capture 'Phase 2' of a trend, sacrificing early entry for higher probability of continuation. The edge lies in the structural significance of Fractals as local liquidity pools.

Components

• Custom 006 Hybrid Table Scanner (regime) — Ensures entry occurs only during trend-aligned, high-relative-volume periods to avoid low-liquidity whipsaws.
• MACD Classic (3-Line) (direction) — Filters for positive momentum direction, ensuring the breakout has underlying trend support.
• Williams Fractals (entry) — Provides structural breakout points (swing highs/lows) as the primary trade trigger.
• MACD & OSMA Cloud Hybrid (exit) — Signals exit when momentum begins to decelerate (color change) before price action fully reverses.
• Parabolic SAR (risk) — Defines the initial stop loss based on recent volatility and provides an accelerating trailing stop.
• RSI Area (Histogram) (confirmation) — Secondary momentum confirmation to ensure the asset is not overbought/oversold at the moment of breakout.

Known failure conditions

• Asset enters a tight 'squeeze' or triangle where Fractal levels are hit but volume remains below the SMA(20).
• RSI remains pinned in overbought/oversold territory (above 70 or below 30) while the OsMA Cloud provides premature exit signals.
• PSAR 'flips' occur more than 3 times within 10 bars, indicating a lack of directional conviction.

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