Fractal Store Momentum Breakout

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

Thesis

The hypothesis is that price trends exhibit inertia only after clearing historical structural barriers (Fractals) during periods of rising volatility (ADX). By combining a structural 'store' of pivot levels with a momentum-weighted filter, we enter only when the market has both the 'reason' (breakout) and the 'fuel' (ADX strength) to move. This avoids early entries into 'fakeouts' common in low-ADX environments.

Components

• ADX / Connectable [Azullian] (regime) — Filters out non-trending periods by requiring trend strength (ADX > 20) and positive directional alignment.
• UT Bot Alerts (MQL5) (direction) — Provides the primary directional bias; entries are only permitted in the direction of the ATR-based trailing stop.
• Mn Fractal Store (entry) — Acts as the volatility breakout trigger. Entries occur when price breaches a stored structural peak or trough.
• HiLo Activator 02 (exit) — Serves as a dynamic trailing stop and trend-exhaustion exit signal based on High/Low averages.
• Risk Reward Indicator Tool (risk) — Calculates position sizing based on a fixed 2:1 RR ratio relative to the distance between entry and the HiLo Activator level.

Known failure conditions

• ADX remains below 20 for more than 50 bars, indicating a 'dead' market.
• More than three consecutive HiLo Activator flips within a 10-bar window (high chop).
• Fractal breakouts occur on low volume/momentum (ADX slope becomes negative immediately after entry).

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