Zen-Fractal Structural Imbalance Hybrid

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

Thesis

Market structure is fractal and recursive; an edge is found when a macro-structural pullback (Chan Lun 2nd/3rd types) coincides with a micro-structural displacement (FVG) and is validated by a sub-structure shift (CISD). The 'label density' of the market serves as a filter for 'structural noise', assuming that a market with too many structural pivot points is in a state of high entropy and low predictability.

Components

• Unsupported array abs label method (regime) — Used as a regime filter by measuring 'label density' (the count of structural points generated). It prevents trading in over-saturated, noisy environments or stagnant markets.
• Unsupported Imported UDT varip Test (direction) — Provides the core directional bias by tracking the persistence of 'close' prices across real-time updates, ensuring entries align with the immediate momentum.
• Chan Lun Engine (MT4 DLL version) (entry) — Primary signal generator; identifies high-probability 2nd and 3rd type Buy/Sell points based on recursive structural analysis (Strokes/Segments).
• Donchian Channels (DC) (exit) — Provides a volatility-adjusted exit mechanism based on breaches of recent price extremes.
• Open Source Fractal Model (risk) — Defines risk parameters using Market Structure Shifts (MSS) and Change in Sub-structure (CISD) levels for precise stop-loss placement.
• FVG Crosscheck (Python Definition) (confirmation) — Confirms Chan Lun signals by ensuring the move is backed by institutional order flow imbalance (Fair Value Gaps).

Known failure conditions

• Market structure becomes too complex, causing the Chan Lun DLL to produce conflicting labels within the same hub.
• Price consistently hits the Donchian Lower/Upper channel before the Fractal MSS level is reached, indicating extreme mean-reversion.
• The DLL fails to initialize or provides lagged labels in high-volatility news events.

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