Dynamic Gap Acceleration (DGA) Strategy

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

Thesis

The hypothesis is that markets exhibit 'price magnetism' toward high-volume nodes and 'price acceleration' through low-volume nodes (Key Zones). By identifying these liquidity gaps using a Dynamic Supply and Demand volume profile and timing entries with Inside Bar breakouts in the direction of the Parabolic SAR trend, we can capture high-momentum moves as price 'jumps' across liquidity voids. MACD serves to exit once the impulse momentum begins to decelerate.

Components

• Dynamic Supply and Demand Zones [AlgoAlpha] (regime) — Acts as a regime filter; identifies 'Key Zones' (low-volume liquidity gaps) where price is expected to move rapidly due to a lack of historical participation.
• Parabolic SAR (Standard) (direction) — Provides the primary directional bias and ensures we are trading with the established trend acceleration.
• Inside Bars (MTF Framework) (entry) — Serves as the volatility contraction trigger; a breakout from an inside bar represents a release of energy into the liquidity gap identified by the regime indicator.
• MACD (exit) — Used to identify momentum exhaustion for exits, preventing the capture of late-stage reversals.
• ATR Heiken Ashi (risk) — Provides a smoothed volatility-adjusted stop loss that accounts for Heiken Ashi trend consistency rather than raw noise.

Known failure conditions

• Price remains range-bound within a 'Key Zone' for extended periods, suggesting the volume gap has been filled and no longer acts as a liquidity vacuum.
• PSAR dots flip frequently within the H1 Inside Bar range, indicating a total lack of directional conviction.

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