Squeeze-HA Structural Breakout
Family: breakout · Regime: trending · Complexity: medium · Asset classes: Forex (Majors), Gold (XAUUSD), Indices (US30) · Timeframes: H1, H4
Thesis
The strategy hypothesizes that significant market moves are preceded by a period of low volatility (squeeze) and that a 3-bar 'structural persistence' check (via the Profile indicator) can distinguish true momentum breakouts from temporary liquidity spikes. By aligning volatility expansion with Heiken Ashi smoothed trend direction, an edge is gained by entering on the first momentum hook (Stochastic) within the new trend.
Components
- NNFX Squeeze (Volatility Breakout) (regime) — Identifies the 'Squeeze' release phase where Bollinger Bands expand beyond Keltner Channels, indicating high-probability volatility expansion.
- Chandelier Exit (Heiken Ashi) (direction) — Defines the core directional bias using smoothed price action and tight volatility stops to filter out noise.
- Stochastic Oscillator (entry) — Provides a timing mechanism to ensure entry occurs on a momentum 'hook' rather than at the peak of a move.
- Commodity Channel Index (CCI) (exit) — Detects momentum exhaustion at extremes to facilitate early exits before a full trend reversal occurs.
- ATR Projection (risk) — Calculates dynamic volatility-based stops and take-profits, ensuring risk is normalized to current market conditions.
- Profile dynamic series history block miss (confirmation) — Acts as a 'Structural Persistence' filter; requires the current price to have significantly deviated from its 3-bar lookback to validate the breakout.
Known failure conditions
- Price remains in a permanent low-volatility 'Squeeze' state for extended periods, causing capital decay.
- The Chandelier Exit (Heiken Ashi) whipsaws more than 4 times in a 20-bar window, indicating a trendless chop.
- CCI exits trigger immediately after entry due to high-volatility spikes that lack follow-through.
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