Grid-Power Pivot Breakout

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: H1, M15

Thesis

Price action is not purely continuous but reacts to discrete intervals. This strategy hypothesizes that when momentum (MACD) and buyer/seller dominance (Total Power) align near psychological point-based grid lines and session pivot levels (R1/S1), a breakout represents a high-conviction participation of institutional flow. The edge exists because retail traders often place stops at these levels, providing the 'fuel' (liquidity) for the continuation.

Components

• Point Based Grid (regime) — Establishes a psychological 'round number' regime where price action tends to cluster or accelerate between fixed point increments.
• Total Power Indicator (direction) — Determines the dominant market force (Bulls vs Bears) over a significant lookback to ensure the trade is aligned with the prevailing sentiment.
• Pivot Points (Classic) (entry) — Provides objective breakout/bounce levels within the daily session based on prior volatility.
• Bears Power (exit) — Specifically used to detect the exhaustion of selling pressure in longs or the resurgence of it in shorts for exit timing.
• PiPi (Price Infrastructure & Position Interface) (risk) — Provides the structural 'Middle Level' for stop-loss placement and the 'Level Range' for calculating position size based on current volatility contexts.
• MACD Classic (confirmation) — Acts as a momentum filter to confirm that price movement at the Pivot level is backed by actual flow rather than a low-volume wick.

Known failure conditions

• Market volatility consistently exceeds 3x the Point Based Grid increment, rendering the grid intervals irrelevant.
• Total Power remains in a '100 Power' state for extended periods without price movement, indicating a high-volume churn/deadlock.
• PiPi fails to generate new 'Contexts' during trending phases, leaving the strategy without a stop-loss anchor.

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