Gapped Boxflow Momentum Strategy

Family: breakout · Regime: trending · Complexity: high · Asset classes: FX, Equities, Indices · Timeframes: M15, H1

Thesis

Market gaps that occur in the direction of the macro trend (H4) and simultaneously break out of immediate price-action range boxes signify a high-conviction momentum shift. The 'edge' rests on the behavioral delay of retail traders reacting to gaps, fueled by institutional order flow 'stepping up' price levels.

Components

• Grid Utility (Rosasurfer Framework) (regime) — Acts as a regime filter by defining the 'granularity' of price movement; price must be interacting with significant psychology-based grid intervals.
• ProfitRobots Dashboard Template (direction) — Provides H1-D1 trend alignment context to ensure the intraday gap is trading in the direction of macro momentum.
• MindTheGap (entry) — Triggers the initial entry signal when price exhibits an impulsive opening gap, suggesting a short-term order flow imbalance.
• Average True Range (ATR) (exit) — Provides a trailing exit mechanism to capture move extensions while locking in profit during volatility contraction.
• Frankenstein Ultimate Pro - ATM Logic (risk) — Uses Linear Regression and ATM logic to define the structural stop loss and position size based on 1.5x RR.
• Relative Vigor Index (RVI) (confirmation) — Confirms that the gap impulse is backed by closing strength relative to the range, filtering out exhaustive outliers.
• Boxline (Dynamic Range Breakout) (volatility_filter) — Functions as a volatility filter; price must have broken out of its immediate 'box' to confirm the gap has momentum to continue.

Known failure conditions

• Gap is immediately 'filled' within 1-2 candles, violating the momentum hypothesis.
• Boxline 'step' fails to move for more than 10 periods, indicating a low-volatility trap.
• RVI signal line crosses back before the first ATR-based TP is reached.

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