Harmonic-MFI Grid Cycler

Family: mean_reversion · Regime: ranging · Complexity: medium · Asset classes: Forex, Equities (Indices) · Timeframes: H1, H4

Thesis

Harmonic patterns represent psychological exhaustion points where market participants seek mean-reversion. However, pure harmonic signals are prone to failure (repainting) if volume does not support the reversal. By requiring an MFI momentum shift at a round-number Grid Level and exiting via the Ehlers DSP cycle, the strategy captures the highest-probability segment of a structural reversal while defining risk based on institutional liquidity zones (psych levels).

Components

• Custom Pattern Detection (Harmonic Designer) (regime) — Provides the structural regime; identifies Fibonacci-based 'completion zones' where price is expected to reverse.
• Arrows Base Template (direction) — Acts as the logic engine that synthesizes Harmonic pattern completion with MFI momentum shifts to trigger the trade.
• Money Flow Index (MFI) (entry) — Confirms that the reversal at the Harmonic level is supported by volume-weighted momentum exhaustion (oversold/overbought).
• Ehlers Detrended Synthetic Price (DSP) (exit) — Identifies the end of the short-term cycle; allows for exiting the trade as soon as the cyclical momentum of the counter-trend move fades.
• Grid Points Utility (risk) — Provides objective, non-dynamic price levels for stop-loss placement and position sizing based on psychological 'round number' support/resistance.

Known failure conditions

• Price violates more than three consecutive grid levels (InpP1) without a reversal, indicating a runaway trend.
• Harmonic 'Leg D' repaints/extends more than twice per signal, leading to multiple stop-outs in a single structural zone.

Explore the full interactive blueprint, parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine.