SMC Squeeze Cyclical Momentum (SSCM)
Family: breakout · Regime: trending · Complexity: high · Asset classes: Forex, Equities, Crypto · Timeframes: H1, H4
Thesis
Market edges exist during the transition from low-volatility consolidation to high-volatility expansion, specifically when price structure (SMC) aligns with macro-cyclical trends (HP Filter). By requiring a QQE momentum trigger during a Bollinger Squeeze breakout, we capitalize on 'Institutional Momentum' while using volatility-adjusted trailing stops (Chandelier) to maximize trend capture.
Components
- Bollinger Squeeze Advanced (regime) — Filters out low-volatility periods (Blue histogram) and ensures entry occurs during momentum breakouts (Green/Red).
- FakeCandle (direction) — Provides the price smoothing context (NNFX-style) upon which momentum and trend calculations are performed to reduce noise.
- QQE (Qualitative Quantitative Estimation) (entry) — Acts as the final trigger, identifying momentum shifts when the smoothed RSI crosses the trailing volatility band.
- ADX / Connectable [Azullian] (exit) — Provides a logic-based exit when trend strength dissipates or directional weight drops below the threshold.
- Chandelier Exit (Heiken Ashi) (risk) — Determines the hard stop-loss and trailing stop based on volatility-adjusted price action of smoothed candles.
- TradeEase (confirmation) — Confirms that the breakout is supported by a Change of Character (CHoCH) or Break of Structure (BOS) for institutional alignment.
- Hodrick-Prescott Filter (HP) (volatility_filter) — Separates the underlying trend from market noise; the trade must align with the slope of the HP trend component.
Known failure conditions
- Multiple consecutive CHoCH reversals within the BSA blue squeeze zone indicate a 'choppy' regime where the logic fails.
- Price frequently piercing the Chandelier Exit level without reaching the ADX exit threshold, suggesting ATR multiplier is too tight for the timeframe.
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