Harmonic Supply-Demand Cycle Trader

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Forex (EURUSD focus) · Timeframes: H1, H4

Thesis

EURUSD price discovery is most efficient at Low Volume Nodes (LVNs) identified by supply/demand zones. By combining the responsive Moving Harmonic Mean (ideal for exchange rate ratios) with the Euro FX VIX (EVZ) filter, we can isolate high-probability entries where trend, institutional volume structure, and market-wide volatility expectations align, exiting trades when the short-term cyclical component (DSP) reaches exhaustion.

Components

• Moving Harmonic Mean (regime) — Determines the primary trend regime; the harmonic mean is used to provide a more responsive average for currency exchange rates (which are ratios).
• ProfitRobots Dashboard Template (direction) — Provides multi-symbol trend confirmation to ensure the move is driven by Euro/USD strength/weakness rather than idiosyncratic noise.
• Dynamic Supply and Demand Zones [AlgoAlpha] (entry) — Identifies entry points within Low Volume Nodes (LVNs) where price discovery is thin and reversals are frequent.
• Ehlers Detrended Synthetic Price (DSP) (exit) — Identifies cycle exhaustion for exits by removing the trend component from price action.
• Volumatic Support/Resistance Levels [BigBeluga] (risk) — Used for structural stop-loss placement where the width of the level is dynamically adjusted by volume volatility.
• RSX (Relative Strength Quality Index) (confirmation) — Provides a smooth, low-lag momentum confirmation to ensure the entry has sufficient kinetic energy.
• Euro FX VIX (EVZ) Data Loader (volatility_filter) — Filters out low-volatility environments where S/D zones are likely to be ignored and high-volatility environments that breach structural levels.

Known failure conditions

• EVZ falls below 6.0 (volatility too low for zone respect) or spikes above 20.0 (structural breakdown).
• Price remains pinned at the MHM for extended periods, indicating a non-trending 'churn' regime.
• MHM length fails to capture the 20-day rate cycle.

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).