Adaptive Volume Force Trend System
Family: trend_following · Regime: trending · Complexity: high · Asset classes: Equities, Forex, Crypto · Timeframes: H1, H4, D1
Thesis
Trends are most exploitable when price momentum (MACD) aligns with underlying volume conviction (VF) within an established structural trend (DMI). By using volatility-adaptive envelopes (Jurik) for exits, we capture the 'meat' of the move while exiting before exhaustion or using PSAR to lock in gains if the trend accelerates then fails.
Components
- Supported ta.dmi na lengths (Test Script) (regime) — Used to establish the trend regime; ADX > 25 confirms a trend, while DI+/- alignment determines the bias.
- Volume Force (VF) (direction) — Provides a secondary volume-weighted confirmation to ensure the price move is backed by institutional flow.
- Connect MACD (Azullian) (entry) — Acts as the precision entry trigger when momentum crosses the zero-line threshold.
- Jurik Adaptive Envelope Bands (exit) — Provides volatility-adjusted profit targets that expand or contract based on Jurik Moving Average logic.
- Parabolic SAR (risk) — Serves as both the initial hard stop-loss and the trailing stop mechanism for capital preservation.
Known failure conditions
- ADX remains consistently below 20, leading to 'death by a thousand cuts' in a ranging market.
- Volume Force stays near zero while price trends, indicating an unsustainable divergence (blow-off top/bottom).
- Price frequently gaps beyond the Jurik Bands during news events, negating the mean-reversion exit logic.
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