MESA Round Level Cyclical Reversion

Family: hybrid · Regime: mixed · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4

Thesis

Market participants cluster orders around psychological 'round numbers'. This strategy assumes that a trend (Heiken Ashi) will likely resume after a cyclical pullback (MSTOCH) occurs specifically at these institutional zones, provided a price-action reversal pattern (Confirmation) signals the entry of liquidity. The edge lies in the confluence of structural 'stickiness' and momentum-filtered cycle bottoms.

Components

• Round Levels Zone Shading (regime) — Establishes the structural regime; trades are only valid when price is interacting with institutional psychological anchors.
• Heiken Ashi (direction) — Filters noise and ensures the entry is aligned with the smoothed trend direction.
• Ehlers MESA Stochastic (MSTOCH) (entry) — Identifies cyclical turning points after the Highpass filter removes lower-frequency trend bias.
• MACD & OSMA Cloud Hybrid (exit) — Signals an exit when momentum begins to decay or the OsMA histogram changes color (trend exhaustion).
• Frankenstein Ultimate Pro - ATM Logic (risk) — Integrates LSMA trend alignment and ATR-based volatility filtering for position validation.
• Pattern Recognition Master (confirmation) — Provides a high-frequency geometric confirmation that market participants are reacting to the level.
• ATR Stop Loss Finder (volatility_filter) — Provides the hard floor/ceiling for risk based on current market volatility.

Known failure conditions

• Price ignores Round Level zones for > 3 consecutive cycles, indicating a regime shift to 'unstructured' volatility.
• MSTOCH remains pinned at extremes (0 or 1) for extended periods, suggesting the HP filter length is mismatched to the asset cycle.
• Frequent whipsaws where Heiken Ashi changes color within 3 bars of entry.

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