Dynamic Structure Harmonic Trend Hybrid

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

Thesis

Market trends originate from structural exhaustion points defined by Fibonacci ratios (Harmonics). By using a speed-adaptive moving average (McGinley) to filter for momentum and a state-machine (BOS/CHoCH) to timing the actual breakout, we can enter high-probability trend legs while using ATR-based trailing stops to capture non-linear price expansions. The edge lies in the confluence of structural geometry and trend-speed validation.

Components

• Custom Pattern Detection (regime) — Defines the structural regime by identifying harmonic-like Fibonacci retracement zones where price is likely to pivot or extend.
• McGinley Dynamic (direction) — Acts as the trend filter; its speed-adjusted calculation reduces lag compared to EMAs, ensuring entries align with the dominant market inertia.
• BOS_CHoCH_Detector (entry) — Provides the tactical entry trigger by identifying the moment market structure shifts (CHoCH) or continues (BOS) after the regime is established.
• Bears Power (exit) — Measures the exhaustion of selling pressure. Used as an exit signal when momentum in the direction of the trade begins to diverge from price.
• Extrem SuperTrend (risk) — Calculates the volatility-adjusted trailing stop-loss, providing a dynamic 'hard' floor/ceiling for risk management.
• Linefill All Visualizer (volatility_filter) — Used as a volatility filter by measuring the vertical distance between the generated channel lines; if the fill area is too narrow, the market is considered too compressed for trend-following.

Known failure conditions

• Price exhibits 'choppy' behavior where BOS and CHoCH signals flip-flop within the McGinley Dynamic's neutral zone.
• Fibonacci ratios in the Pattern Detection component fail to provide mean-reverting properties due to extreme fundamental news drivers.
• ATR expansion leads to stop-loss levels that exceed the historical average candle size by 500%, making the R:R untenable.

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