Gann-Strength Volatility Pullback Strategy

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Forex Majors (USD, EUR, GBP, JPY, CHF, AUD, NZD, CAD) · Timeframes: H1 (Execution), D1 (Risk/Regime)

Thesis

Market trends are most persistent when a fundamental divergence exists between two currencies (Relative Strength) and price action is confirmed across multiple timeframes. By entering on a Bollinger Band 'recovery' (pullback to value) within a high-volatility cycle (filtered by SAK), we capture the resumption of the primary trend with improved risk-to-reward.

Components

HiLo Activator (Gann Style) (regime) — Establishes the primary trend regime; ensures trades are only taken in the direction of structural momentum.
Currency Strength Matrix (All) (direction) — Validates that the specific pair choice is driven by diverging currency flows (Strong vs Weak).
Bollinger Bands (entry) — Triggers entry on a mean-reversion 'spring' (touch) followed by a momentum recovery (cross of SMA) within the trend.
Chandelier Exit (exit) — Provides a dynamic trailing stop that accounts for ATR-based volatility expansion.
Daily High Low MTF (risk) — Provides structural anchor points for Stop Loss placement and volatility-based position sizing.
Heatmap Framework (confirmation) — Synchronizes multiple timeframes to ensure the local entry is not fighting a higher-order trend.
Swiss Army Knife Indicator (SAK) (volatility_filter) — Used in BandPass (BP) mode to ensure the market is in a cyclical/volatile state rather than a flat, low-liquidity state.

Known failure conditions

Currency Strength Matrix values stay near zero for extended periods (lack of divergence).
SAK BandPass output remains flat, indicating a total lack of cyclical volatility.
Frequent whipsaws of the HiLo Activator on the H1 timeframe.

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