Darvas-FVG Momentum Scalpel

Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX, Indices, Commodities · Timeframes: H1, H4

Thesis

Market trends move in 'stages' or boxes (Darvas); once a box is breached with sufficient volatility (ADX) and momentum (TRIX), price creates imbalances (FVG). By entering these imbalances with a trend-aligned bias and exiting at session-based liquidity levels (Pivots), one can capture the meat of a trend while using accelerating stops (PSAR) to manage the risk of sudden reversals.

Components

• Darvas Boxes MetaTrader 5 (regime) — Establishes the macro-regime; only trades in the direction of the latest box breakout to ensure fundamental institutional flow is present.
• TRIX (direction) — Acts as a triple-smoothed momentum filter to ensure that the immediate trend direction aligns with the bigger Darvas breakout.
• OrderBlock FVG Detector (entry) — Provides the high-probability entry trigger by identifying 'fair value' imbalances within a trend, looking for a discount or premium entry.
• Pivot Points (Classic) (exit) — Provides objective, static targets based on previous session volatility to capture localized liquidity.
• Parabolic SAR (risk) — Provides a dynamic, volatility-based trailing stop to protect capital as the trend accelerates.
• Average Force (confirmation) — Validates that price is not overextended relative to its recent range, preventing buying at the absolute peak of a move.
• ADX / Connectable [Azullian] (volatility_filter) — Filters out low-volatility 'noise' periods where OrderBlocks and Darvas boxes are prone to false breakouts.

Known failure conditions

• Price frequently touches the 14-period ADX threshold of 20 but fails to expand further.
• Darvas box boundaries are frequently violated and then reclaimed without session Pivot targets being reached.
• Triple-smoothed TRIX shows zero-line crosses while ADX remains above 25 (indicative of trend exhaustion rather than momentum).

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