Zen-Momentum Structural Filter
Family: hybrid · Regime: trending · Complexity: high · Asset classes: Equities, Indices, FX · Timeframes: H1, D1
Thesis
Market trends are driven by institutional cycles of accumulation and distribution. By using Chan Lun to identify structural consolidation 'hubs' and filtering for institutional distribution (D-Days) via the CCC, we can enter trades where momentum (ROC) confirms a high-probability exit from a hub toward daily volatility extensions. The edge exists because the strategy identifies the 'Second and Third' waves of a move, avoiding the uncertainty of the initial reversal.
Components
- Combined Candle Counter (CCC) Dev (regime) — Filters out entry signals during institutional distribution phases (D-Days) and price exhaustion (Climaxes) to ensure the trade occurs within a healthy trend regime.
- Rate of Change (ROC) (direction) — Provides the primary momentum filter to ensure that structural entries are supported by positive/negative price velocity.
- Chan Lun Engine (MT4 DLL version) (entry) — Identifies Type 2 (pullback) and Type 3 (breakout retest) entries based on market structure hubs (Zhongshu).
- Trepidity Opening Range with Extensions (exit) — Uses intraday volatility projections to set take-profit targets based on the session's initial range.
- SuperTrend (risk) — Acts as a dynamic trailing stop and provides a secondary trend confirmation.
- Momentum Oscillator (confirmation) — Confirms that the price is moving at an accelerating rate relative to its recent past, reducing exposure to low-volatility 'grinds'.
- ATR Projection (volatility_filter) — Filters out signals during excessive volatility spikes (where ATR > Multiplier * Avg ATR) to prevent entering at the end of a move.
Known failure conditions
- Chan Lun hub labels 'disappear' or relocate frequently (structural failure).
- Opening Range extensions are reached within the first 5 minutes of the session (volatility too high for OR logic).
- Price remains pinned between SuperTrend and the Chan Lun Hub for >10 bars (low volatility regime).
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