Ribbon-QQE Liquidity Momentum Cross
Family: trend_following · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4, D1
Thesis
The strategy assumes that significant market trends are punctuated by volatility-adjusted momentum shifts (captured by QQE) and that price naturally seeks out recent liquidity pools (20-period extremes) as exhaustion points. By using the 'FakeCandle' for risk placement, we filter out non-informational price noise that often triggers standard stop-losses.
Components
- Moving Average Ribbon (chingc) (regime) — Establishes the macro-regime; entries are only permitted in the direction of the long-term (200) and medium-term (50) alignment to avoid counter-trend traps.
- Momentum (direction) — Ensures that price velocity is positive/negative relative to a 10-period lookback, confirming the trend has active strength behind it.
- Qualitative Quantitative Estimation (QQE) with Alerts (entry) — Provides the high-sensitivity trigger. By using an RSI smoothed by ATR-based trailing levels, it identifies momentum shifts that have sufficient volatility to sustain a move.
- Custom 004 Liquidity Map with Drawings (exit) — Identifies local supply/demand zones (20-period extremes). These serve as logical take-profit targets where mean reversion is likely to occur.
- FakeCandle (risk) — Filters out "noise" wicks. Stop losses are placed at the high/low of the 'FakeCandle' rather than the raw candle to avoid being stopped out by non-structural volatility spikes.
- Stochastic Oscillator (confirmation) — Acts as a secondary momentum filter to ensure the QQE cross isn't happening at an exhausted extreme (overbought/oversold).
Known failure conditions
- Price action enters a prolonged period of low-volatility 'stair-stepping' where QQE fails to cross the 50 level.
- Liquidity map levels are breached with such velocity (slippage) that the reward-to-risk ratio becomes sub-1.0.
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