Smoothed Distribution-Filtered Momentum Trend

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Equities, Forex, Crypto · Timeframes: D1, H4

Thesis

Trends are most sustainable when institutional distribution (heavy selling on down days) is absent and momentum is backed by smoothed price action. By timing entries via MACD/Momentum while filtered for distribution phases, we capture the meat of a trend, with structural protection from Supply/Demand zones.

Components

• MA-Candlesticks (regime) — Defines the primary trend regime by smoothing price action into OHLC averages, reducing noise from minor price fluctuations.
• Combined Candle Counter (CCC) Dev (direction) — Filters out periods of heavy institutional distribution (D-Days) and ensures EMA alignment across timeframes.
• GoldenChart MACD (entry) — Provides the specific timing for entry based on momentum histogram shifts.
• Donchian Channels (DC) (exit) — Defines the trailing exit and volatility boundaries, closing the trade when price exhausts its momentum.
• Supply & Demand Zones (NNFX) (risk) — Identifies institutional liquidity pockets for high-probability stop-loss placement and risk-adjusted sizing.
• Momentum Oscillator (confirmation) — Confirms that the rate of change supports the MACD signal, preventing entries on weak momentum.
• Indicator Sample Skeleton (volatility_filter) — Serves as a "data integrity" filter; trades are only permitted if total bars (iBars) exceed the CCC lookback (360) to ensure indicator stability.

Known failure conditions

• Persistent sideways price action within a single Supply/Demand zone resulting in multiple stop-outs.
• Significant gaps during news events that bypass Donchian exit levels and NNFX zones.
• Failure of the CCC lookahead logic to translate to live execution, leading to 'phantom' signals.

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