Zen-Ehlers Structural Momentum

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4

Thesis

Market structure develops around 'Central Hubs' where supply and demand reach temporary equilibrium. Breakouts from these hubs (Type 3 signals) represent institutional intent. By filtering these structural breaks with triple-smoothed momentum (TRIX) and Butterworth filters (SAK), we isolate high-probability expansions and ignore noise-driven 'fakeouts' common in lower-timeframe structure.

Components

• Chan Lun Engine (MT4 DLL version) (regime) — Defines the structural context (regime) by identifying 2nd/3rd type entry points relative to market 'Hubs' (Zhongshu).
• TRIX (direction) — Provides a smoothed directional filter to ensure structural signals align with macro-momentum.
• Traders Dynamic Index (TDI) (entry) — Acts as the tactical trigger; entry occurs when the RSI Price Line crosses the Trade Signal Line within the structural context.
• Parabolic SAR (exit) — Provides an accelerating trailing stop to capture the 'Segment' expansion before structural exhaustion.
• Spread Display and Alert (risk) — Used as a trade inhibitor to prevent entry during periods of low liquidity or high volatility-induced slippage.
• Swiss Army Knife Indicator (SAK) (volatility_filter) — Filters out low-volatility 'noise' by ensuring the price signal has sufficient cyclical energy.

Known failure conditions

• Market enters a 'Broadening Top' or 'Megaphone' structure where Chan Lun Hubs are frequently breached and invalidated.
• Successive TRIX zero-line crosses without price displacement (choppy macro trend).
• Spread exceeds the Alert threshold for more than 50% of the session duration.

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