Structural Momentum Confluence System
Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4
Thesis
The hypothesis is that trend persistence is highest when market structure (ZigZag) aligns with low-lag price filters (HMA) and multiple oscillators (RSI/CCI/ADX). By waiting for a structural swing to confirm and then requiring high-velocity momentum confluence, we can enter the strongest part of a trend leg and exit using volatility-adjusted stops before a full reversal occurs. This edge relies on the behavioral tendency of markets to 'cluster' volatility and momentum after structural pivots.
Components
- ZigZag (regime) — Determines the macro market structure by identifying the last confirmed swing point to establish a directional bias.
- Hull Moving Average (HMA) (direction) — Acts as a high-speed trend filter to ensure entries are aligned with immediate price momentum.
- ADX Crossing INGM (entry) — Provides the specific entry trigger based on +DI and -DI momentum crossovers.
- GoldenChart MACD (exit) — Uses histogram exhaustion (color change or zero-cross) to signal the end of a momentum leg.
- Extrem SuperTrend (risk) — Provides a dynamic trailing stop based on volatility to manage risk and protect capital.
- GFRMa Pivot HTF3 Dashboard (volatility_filter) — Filters for high-probability windows where RSI and CCI are in confluence, reducing false ADX triggers.
Known failure conditions
- Price oscillates within the ZigZag deviation threshold causing multiple non-directional HMA flips.
- The SuperTrend line stays too tight in high-volatility spikes, resulting in premature stop-outs during valid trends.
- The ADX Crossing repainting leads to entry signals that disappear on historical backtests.
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