Gravitational Heiken-RSI Trend Divergence

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Indices · Timeframes: H1, H4

Thesis

The strategy assumes that trends exhibit 'momentum breathing' where price pulls back before continuing. By using Heiken Ashi to filter the primary direction and RSI to catch the resumption of momentum after a dip, we enter at a favorable price. The Ehlers Center of Gravity serves as a 'smart' exit that identifies when the trend's internal cycle has reached a balance point, likely before a significant correction occurs.

Components

• Price Line and Visible Range High-Low (regime) — Defines the context: we only trade when price resides within the middle 50% of the currently visible structural range to avoid buying at the absolute ceiling or selling at the floor.
• Heiken Ashi (Standard MT5) (direction) — Filters out intraday noise to ensure we are entering in alignment with the immediate momentum trend.
• Relative Strength Index (RSI) (entry) — Used to identify momentum exhaustion and recovery (re-entry) after a pullback within the HA trend.
• Ehlers Center of Gravity (CG) (exit) — Identifies the 'balance point' of the price distribution; an exit is triggered when momentum deviates significantly from this gravitational center, indicating a cycle climax.
• Williams Fractals (risk) — Provides objective, albeit lagged, structural pivots for trailing stop-loss placement and risk-defined positioning.

Known failure conditions

• Persistent low-volatility 'flat' price action causing the visible range to compress to a few pips.
• Strong parabolic trends that never touch the Center of Gravity, leading to premature exits or missed re-entries.

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).