Harmonic Breakout Diagnostic System

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Forex, Indices, Equities · Timeframes: H1, H4, D1

Thesis

Market trends are most likely to persist when they exhibit clear harmonic structural pullbacks that complete within the direction of a larger breakout. By utilizing a diagnostic volatility gate, we filter out noise from illiquid periods, while the SilverTrend ensures we are not catching 'falling knives' during harmonic completions. The edge lies in the confluence of structural geometry and breakout momentum.

Components

• Unsupported array.range UDT method (regime) — Acts as a volatility 'heartbeat' check; if the diagnostic range calculation on price points returns 0 or fails, the market is considered stagnant/illiquid, and execution is suppressed.
• SilverTrend Sv2 (direction) — Provides the primary directional bias using breakout levels of recent high/lows. Ensures entries are aligned with dominant momentum.
• Custom Pattern Detection (entry) — Identifies precise entry points at the terminal nodes (Point D/F) of harmonic-like price structures.
• Bears Power (exit) — Used for momentum exhaustion; a reversal in Bears Power values suggests the selling pressure is dissipating (for longs) or strengthening (for short exits).
• TopTrend (BBands Stop) (risk) — Provides a dynamic trailing stop and defines the 'uncle' point for risk management based on Bollinger Band volatility.

Known failure conditions

• SilverTrend direction flips more than 3 times within the 'CountBars' lookback (choppy regime).
• Custom Pattern Detection fails to identify a completion point (Point D/F) within 20 bars of a SilverTrend signal.
• Price remains stuck between the TopTrend UB and LB for extended periods, leading to time-decay of the harmonic edge.

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