FVG Consensus Head & Shoulders Hybrid
Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equity Indices, Commodities · Timeframes: H1, H4
Thesis
Market reversals occur when institutional imbalances (FVGs) are met with retail exhaustion patterns (H&S). By using a consensus regime filter (Mode of String Array) and verifying momentum decay (Bears Power), we can filter out 'traps' and enter high-probability reversals using volatility-adjusted risk management (Chandelier HA). The edge lies in the confluence of retail pattern symmetry and institutional liquidity POIs.
Components
- Mode of String Array (Compatibility Test) (regime) — Used to determine the consensus market regime by calculating the most frequent trend state (Bullish/Bearish) across multiple higher timeframes.
- ICT + FVG + RSI V1.2.12 (direction) — Identifies institutional liquidity imbalances (FVGs) and momentum extremes (RSI) to establish a directional bias within the POI.
- HS Indicator (Head & Shoulders) (entry) — Acts as the definitive execution trigger, identifying exhaustion and reversal patterns at the edge of the FVG.
- Risk Reward Indicator Tool (exit) — Provides the logic for target placement based on a fixed multiple of the risk defined by the Chandelier Exit.
- Chandelier Exit Heiken Ashi Variant (risk) — Calculates the volatility-adjusted stop loss and trailing mechanism based on Heiken Ashi smoothed price action.
- Bears Power (confirmation) — Confirms that seller momentum is diminishing (for longs) or buyer momentum is fading (for shorts) as the pattern completes.
Known failure conditions
- Price closes entirely through the Fair Value Gap without a pattern formation (invalidation of POI).
- Chandelier Exit ATR period of 1 produces constant whipsaws in low volatility.
- Mode of String Array fails to find a majority trend, resulting in a 'Neutral' regime lock.
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