Harmonic Gap-Fill Cycle (HGFC) Strategy

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4

Thesis

Markets that open with a gap create a liquidity vacuum that is structurally filled through harmonic price cycles. By using ALMA's Gaussian smoothing to avoid exhausted trends and AMFM frequency demodulation to time the entry, we can enter the subsequent momentum wave with high precision, using volatility-adjusted exits to capture the full move.

Components

• ALMA with Floating Levels (regime) — Filters out overextended trends where price has breached the upper/lower floating levels, ensuring we only enter when the Gaussian-smoothed trend has room to move.
• MindTheGap (direction) — Provides the initial directional bias; a gap up indicates bullish intent/imbalance, while a gap down indicates bearish intent.
• Custom Pattern Detection (entry) — Identifies the specific geometric price structure (Harmonic-like) that suggests a pivot point within the broader gap-initiated move.
• Chandelier Exit (exit) — A volatility-adjusted trailing stop that adapts to market expansion or contraction.
• Point-Based Price Grid (risk) — Used to standardize risk; stop losses and position sizing are calculated based on fixed point-intervals (grid levels) to ensure consistency across different volatility regimes.
• AMFM - Ehlers AM Detector / FM Demodulator (confirmation) — Provides the frequency timing; ensures the entry aligns with the cyclical 'pulse' of the market (FM cross) rather than just a static price level.
• Andean Oscillator (volatility_filter) — Acts as a volatility gate; ensures that Bull/Bear pressure is expanding relative to the signal line to avoid entries in low-volatility 'dead' zones.

Known failure conditions

• Price remains trapped within a single Point-Based Grid interval for extended periods (low liquidity).
• High frequency of gaps in both directions (choppy openings) neutralizing the MindTheGap directional bias.
• ALMA floating levels narrowing excessively, leading to constant regime rejection.

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