Matrix-Filtered Institutional Flow (MFIF)

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

Thesis

Institutional 'Order Blocks' and 'Fair Value Gaps' represent areas of high-interest liquidity. When price breaks out from these zones during a period of volatility expansion (Squeeze) and aligns with a multi-layered trend (Alligator), the probability of a sustained directional move is significantly higher than a random breakout. By using volume-weighted exhaustion (MFI) and structural boundaries (Darvas), we can capture the meat of the move while protecting against late-stage reversals.

Components

• Matrix Int Support Test (regime) — Acts as a 'Computational Regime' filter; ensures the underlying data stream is generating sufficient structural complexity (matrix dimensions > 0) to support pattern detection.
• Bill Williams Alligator (direction) — Defines the primary trend direction through the alignment of smoothed moving averages (Jaws, Teeth, Lips).
• Order Block & FVG Detector (entry) — Identifies institutional accumulation/distribution zones (Order Blocks) to trigger entries at high-probability liquidity levels.
• Money Flow Index (MFI) (exit) — Uses volume-weighted momentum to identify exhaustion points in the trend for tactical exits.
• Darvas Boxes (Multi-Mode) (risk) — Provides structural stop-loss levels and defines the current volatility range to manage risk.
• Average Force (confirmation) — Confirms that price momentum is aligned with the direction of the order block breakout.
• NNFX Squeeze (Volatility Breakout) (volatility_filter) — Ensures trades are only taken during volatility expansion (Bollinger Bands outside Keltner Channels).

Known failure conditions

• Alligator lines intertwine (sleeping) for more than 50 bars, indicating a deep consolidation regime where OBs are unreliable.
• Average Force remains near zero despite volatility expansion, indicating 'noise' breakouts without momentum.
• MFI Divergence: Price makes a higher high while MFI makes a lower high during an OB breakout.

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