Grid-Confluence Fibonacci Momentum

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: FX, Indices, Crypto · Timeframes: H1, H4

Thesis

Trends exhibit hierarchical structure where dynamic Fibonacci retracements often cluster around fixed psychological price grids; capturing these 'confluence' nodes during volatility expansions offers a statistical edge over pure momentum-chasing.

Components

• Point Based Grid (regime) — Provides a static psychological frame of reference; price behavior near fixed intervals often exhibits clustering or rejection.
• Frankenstein Ultimate Pro - ATM Logic (direction) — Filters for 'active' trends where TEMA momentum aligns with LSMA direction and volatility is sufficient for a move.
• Auto Fibonacci (entry) — Identifies high-probability entry points within the established trend via the 50% and 61.8% retracement levels.
• Fisher-based Scalping Indicator (exit) — Captures cyclical exhaustion by transforming price distribution, signaling when the 'swing' is complete before the trailing stop is hit.
• TopTrend (BBands Stop) (risk) — Uses volatility-adjusted levels (Bollinger Bands) to provide a dynamic, trailing floor/ceiling for risk management.

Known failure conditions

• Price consistently ignores the Point Based Grid levels (indicating a regime of pure noise).
• LSMA remains flat for extended periods while the Fisher indicator whipsaws, indicating low volatility consolidation.
• ATR-based volatility filter fails to trigger for > 100 bars in high-liquidity sessions.

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