Mass Flow Reversal Engine

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: Equities, Futures (CME/EUREX) · Timeframes: M30, H1

Thesis

Market trends often terminate in a 'blow-off' phase characterized by range expansion (high Mass Index) followed by exhaustion. A tradable edge exists when this exhaustion is met with aggressive contrary order flow (Buddha CVD) and a recovery in momentum (CCI), indicating that liquidity has shifted and a new trend direction is established.

Components

• Mass Index (MI) (regime) — Used to detect 'Reversal Bulges' where range expansion suggests an exhausted trend is about to pivot.
• Buddha Money Flow (direction) — Filters MI reversals by ensuring the delta imbalance (CVD) aligns with the new reversal direction.
• Commodity Channel Index (CCI) (entry) — Provides the specific execution trigger when momentum recovers from an extreme following the MI signal.
• Average True Range (ATR) (exit) — Calculates dynamic profit targets based on historical volatility.
• ATR Heiken Ashi (risk) — Used for stop-loss placement to ensure the SL is derived from smoothed volatility, reducing noise-outs.

Known failure conditions

• CVD remains flat or negative during a bullish CCI cross, indicating no liquidity support for the move.
• Price remains in a tight range despite a Mass Index 'Bulge', indicating the expansion was a non-event.
• Frequent gap-overs that bypass ATR-based stop levels in overnight sessions.

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