Three-Line Jurik Squeeze System

Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX, Indices, Equities · Timeframes: H1, 15M

Thesis

Strong market trends are characterized by 'bursts' of price discovery followed by 'coiling' consolidations. By using Three-Line Break charts to define the trend regime and Jurik's adaptive logic to filter lag, we can identify high-probability entries at 'Inside Bar' coil points. The edge is further refined by requiring a liquidity sweep (Reversal Engine), ensuring the entry occurs when weak hands have been shaken out, just as the trend resumes expansion.

Components

• Three-Line Break (TLB) with MA (regime) — Filters micro-noise to identify the structural market regime; only trends that clear 3 previous price levels are considered active.
• Jurik Adaptive Envelope Bands (direction) — Provides an adaptive baseline to ensure entries occur in the direction of institutional momentum with minimal lag.
• Inside Bars (MTF Framework) (entry) — Identifies a 'volatility squeeze' or period of consolidation within the higher timeframe trend.
• ATR Heiken Ashi (exit) — Uses smoothed price data to create a trailing stop that is less sensitive to whipsaws than standard ATR.
• Reversal Engine Score v1 (risk) — Calculates the precise Stop Loss based on liquidity sweeps and ensures the entry signal meets a quality threshold based on HTF EMA and RSI confluence.
• Kijun Sen Envelope (volatility_filter) — Acts as a mean-reversion boundary to prevent buying at the absolute peak of a trend expansion (overextension filter).

Known failure conditions

• Three-Line Break signals frequently flipping (choppy markets) resulting in high commission burn.
• Price remains pinned at the Kijun Sen Envelope during high-volatility news events, preventing entries in strong trends.
• Jurik smoothing lag leads to late exits during 'V-shaped' reversals.

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