Andean Structural Breakout Framework

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

Thesis

Market structure shifts (BOS/CHoCH) represent shifts in institutional order flow, but they are often manipulated. By requiring that a breakout (TBO) occurs simultaneously with an expansion in volatility-based momentum (Andean Oscillator) and away from high-volume nodes, we can filter for 'true' structural transitions. Using Median Absolute Error (MdAE) for risk accounts for the 'normal' noise of a specific asset better than fixed-ATR stops, which are skewed by outliers.

Components

• BOS_CHoCH_Detector (regime) — Establishes the macro-structure bias; identifying when a trend has officially shifted (CHoCH) or continued (BOS).
• Andean Oscillator (direction) — Filters structural signals by requiring volatility-backed momentum, ensuring the 'break' has sufficient force.
• TradeBreakOut (TBO) (entry) — Provides the precise execution trigger once regime and momentum are aligned.
• Zero Lag Least Squares Moving Average (ZLSMA) (exit) — Functions as a trailing exit that stays tight to price action without the typical lag of SMAs.
• Median Absolute Error (risk) — Quantifies 'market noise' or prediction uncertainty; used to set stops that are wider during erratic price action.
• Volume by Level Map (confirmation) — Confirms that breakouts are occurring at or away from high-interest price levels (Point of Control logic).
• ATR Projection (volatility_filter) — Ensures the entry candle hasn't already exhausted its expected daily range.

Known failure conditions

• Price enters a low-volatility 'sawtooth' pattern where BOS and CHoCH fire sequentially within a narrow range.
• Volume levels become overly dispersed, leading to a lack of clear 'high volume' nodes to trade against.
• Andean Oscillator signal lines flatten, indicating a total loss of directional volatility.

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