Cyclical Order Block Momentum Hybrid

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4, D1

Thesis

Institutional orders create inefficiencies (Order Blocks/FVGs) that are only tradeable when they occur with significant volume (2x average) and align with both cyclical (BPF) and momentum (MACD) oscillators. By requiring this convergence, we filter for high-conviction 'Smart Money' impulses while using ATR-based trailing stops to capture the resulting trend expansion.

Components

• Array Sort Unsupported Order Test (regime) — Acts as a 'Hard Multiplier' regime filter; since the invalid 'sideways' sort returns the first element of {2,1}, the value 2 is used as a volatility/volume threshold coefficient to ensure entries occur during high-activity regimes.
• Order Block / FVG Detector (direction) — Identifies institutional footprint (impulsive price gaps) to establish directional bias.
• MACD Classic (entry) — Filters for trend momentum to ensure the OB/FVG impulsive move is supported by broader price flow.
• SuperTrend (exit) — Provides a trend-based exit signal to capture extended moves following an OB breakout.
• Chandelier Exit (risk) — Primary risk management tool; provides a volatility-adjusted trailing stop to protect capital.
• Bandpass Filter (BPF) (confirmation) — Isolates cyclical price components to ensure the entry occurs during a favorable phase of the market cycle.
• Average Volume (AV) (volatility_filter) — Validates that the impulsive move detected by the OB indicator is backed by significant participation.

Known failure conditions

• The Array Sort fixture returns a null or error value rather than the integer 2, disabling the volume multiplier.
• Market enters a low-volatility 'crab' regime where MACD and SuperTrend produce alternating whipsaws.
• Order Blocks are frequently 'hunted' and exceeded before a trend develops (stop-run regime).

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