Mass-Rank Structural Reversal (MRSR)

Family: hybrid · Regime: high_vol · Complexity: high · Asset classes: FX, Equities, Indices · Timeframes: H1, H4

Thesis

Market reversals are often preceded by a period of extreme range expansion (exhaustion) followed by a return to mean volatility. This 'Mass Index Bulge' signifies a potential regime shift. By entering only when price structure (Order Blocks) and cyclical momentum (RCI) align with this volatility shift, we filter out minor pullbacks. The hypothesis is that these three independent factors (range, structure, and rank correlation) rarely align by chance, thus creating a high-probability reversal edge.

Components

• Mass Index (MI) (regime) — Identifies the 'reversal bulge' where extreme range expansion suggests an impending trend change.
• MA-Candlesticks (direction) — Filters noise by requiring the smoothed price (MA-Candle) to align with the intended trade direction.
• OrderBlock FVG Detector (entry) — Provides the specific trigger via structural displacement (Fair Value Gaps) or institutional footprints (Order Blocks).
• Relative Strength Index (RSI) (exit) — Standard momentum-based exit to capture the meat of the reversal before exhaustion.
• Pivot Points Reversal Levels (risk) — Uses the most recent structural pivot line as a hard stop-loss and for calculating dynamic position sizing.
• Rank Correlation Index (confirmation) — Confirms that price cycle momentum is exiting extreme oversold/overbought conditions via Spearman's rank.
• Inside Bars (MTF Framework) (volatility_filter) — Acts as a volatility filter; prevents entry during low-liquidity 'dead zones' where Inside Bar clusters exceed a specific threshold.

Known failure conditions

• Mass Index remains below 26 for extended periods, indicating a lack of volatility needed for the 'bulge' signal.
• RCI remains 'pinned' at extremes during a runaway trend, causing the confirmation to never trigger.
• Market enters a 'low-volatility grind' where Pivot Points are too tight, leading to stop-outs before the move develops.

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