Structural Momentum Flow Oscillator

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Forex · Timeframes: 1H, 4H

Thesis

Market edges exist when local price momentum (REI) aligns with global capital flows (FXTSI) at structural price exhaustion points (AlgoAlpha Supply/Demand). By entering only when price is coming off a volume-supported zone during an established volatility-backed trend (SuperTrend), the strategy exploits the behavioral tendency of markets to trend once structural liquidity has been cleared.

Components

Dynamic Supply and Demand Zones [AlgoAlpha] (regime) — Used as a regime filter to ensure trades are initiated only when price is coming off a significant market structure pivot or LVN.
SuperTrend (direction) — Determines the primary trend bias to ensure momentum trades align with the dominant market direction.
Range Expansion Index (REI) (entry) — Acts as the final timing trigger by detecting price velocity acceleration after noise has been filtered.
Supply & Demand Zones (NNFX) (exit) — Provides clear structural targets for profit-taking based on body-to-wick price action pivots.
Parabolic SAR (risk) — Provides an accelerating trailing stop to lock in gains and a hard stop level based on trend exhaustion.
Forex True Strength Index (FXTSI) (confirmation) — Confirms that the specific currency pair is driven by broad-based currency strength/weakness rather than idiosyncratic noise.
SMA3x5+BB - pjdhiro (volatility_filter) — Acts as a volatility filter; trades are only taken if price is within a 'normal' volatility range (inside Bollinger Bands) to avoid late entries into overextended moves.

Known failure conditions

The FXTSI remains flat (near zero) across all majors, indicating a lack of global currency flow.
Price spends >70% of the time pinned against the Bollinger Band extremes, indicating a runaway trend the Parabolic SAR cannot catch.
Frequent 'zone' repaints in the AlgoAlpha indicator leading to signal evaporation.

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