Gann-Bears Threshold Momentum
Family: hybrid · Regime: trending · Complexity: medium · Asset classes: Low-priced Cryptocurrencies (e.g., ADA, XRP, DOGE), Penny Stocks, Currencies with specific price handles · Timeframes: H1, H4, D1
Thesis
The strategy hypothesizes that for assets trading at specific price thresholds (e.g., $2.00), a break above this level supported by Gann trend alignment and positive Bears Power (where lows are rejected above the EMA) signals a sustainable momentum shift rather than a temporary spike. By filtering out high-volatility exhaustion candles (Gain Loss > 1%), the strategy seeks to enter early in a trend's 'meat' phase while using ATR-based trailing stops to protect capital during the inevitable trend exhaustion.
Components
- HiLo Activator (Gann Style) (regime) — Establishes the primary trend regime by requiring the close to stay above/below the moving averages of previous highs/lows.
- Bears Power (direction) — Confirms directional momentum; specifically for longs, we look for 'Bears Power' to be positive, indicating even the candle low is above the EMA.
- Plotshape Test Indicator (entry) — Acts as a hardcoded price-level filter, ensuring the strategy only operates when the asset is trading above a specific structural threshold (Price > 2.0).
- MACD (exit) — Provides a momentum-based exit signal when the trend shows signs of exhaustion via a signal line cross.
- SuperTrend MT5 (FxGeek) (risk) — Determines volatility-adjusted stop-loss placement and position sizing based on the current ATR-derived floor/ceiling.
- Gain Loss Info (Visual Overlays) (volatility_filter) — Acts as a volatility 'ceiling' filter to prevent entering trades after an exhaustive parabolic move (delta % < 1%).
Known failure conditions
- The asset price drops significantly below the 2.0 threshold, rendering the entry logic permanently inactive.
- High-frequency whipsaws in the SuperTrend line during low-volatility periods leading to consecutive stop-outs.
- MACD signal crosses occurring too late in low-momentum environments, erasing all unrealized gains.
Explore the full interactive blueprint with parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine (free download).