SSL-FVG Imbalance Continuation Hybrid

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX Major Pairs, Equity Indices (NQ, ES), Large-Cap Crypto (BTC/ETH) · Timeframes: 15M, 1H

Thesis

Markets exhibit 'mean reversion within a trend' when price creates gaps in efficiency (FVGs). This strategy hypothesizes that entering these gaps only after a liquidity sweep (detected by the Reversal Engine) and during a confirmed momentum phase (SSL) provides an edge by capturing the 're-balancing' of price before the trend continues.

Components

• Indicator Sample (Bar Count Logger) (regime) — Used as a minimum data threshold filter to ensure that the Dynamic S&D zones and SSL SMA calculations have sufficient historical depth to be statistically relevant.
• SSL Channel (direction) — Establishes the primary trend direction via the high/low SMA crossover, filtering for momentum-aligned trades.
• Fair Value Gap (FVG) Indicator (entry) — Identifies price inefficiencies (imbalances) where price is likely to gravitate for a 're-fill' before continuation.
• Heikin-Ashi Candles (exit) — Filters noise for exit signals; a change in HA candle color suggests the exhaustion of the local momentum push.
• Dynamic Supply and Demand Zones [AlgoAlpha] (risk) — Determines logical stop-loss placement at Low Volume Nodes (LVNs) and take-profit targets at major liquidity clusters.
• Reversal Engine Score v1 (volatility_filter) — Acts as a volatility and liquidity gate, ensuring the entry occurs only after a liquidity sweep (stop hunt) has occurred within the trend.

Known failure conditions

• Persistent low-volatility environment where SSL flips frequently without price reaching FVG targets.
• Price consistently 'front-runs' the FVGs, leaving the strategy without entry triggers despite strong trends.
• Dynamic S&D zones fail to update or disappear during rapid price discovery phases.

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