Harmonic Volume-Momentum Confluence

Family: hybrid · Regime: mixed · Complexity: high · Asset classes: FX, Equities, Indices · Timeframes: H1, H4, D1

Thesis

Price reversals are most sustainable when they occur at Fibonacci structural points that coincide with low-volume liquidity gaps, provided momentum (ASH) confirms the turn and the broader market is not undergoing institutional distribution (D-Days).

Components

• Custom Pattern Detection (regime) — Identifies exhaustion points in market structure via Fibonacci-constrained harmonic pivots. Acts as the primary regime trigger.
• MACD & OSMA Cloud Hybrid (direction) — Filters direction by requiring momentum to be accelerating (Dark Green/Crimson) in the direction of the pattern reversal.
• Absolute Strength Histogram (ASH) (entry) — The final execution trigger, measuring the net dominance of bulls vs bears to confirm the 'break' out of the harmonic zone.
• TSI Convergence Divergence (TSI_CD) (exit) — Detects early momentum decay via the divergence between the TSI and its signal line for precision exits.
• Dynamic Supply and Demand Zones [AlgoAlpha] (risk) — Provides structural price levels based on volume gaps to set hard stop-losses and targets.
• Arnaud Legoux Moving Average (ALMA) (confirmation) — Provides a low-lag trend baseline to ensure the entry isn't fighting a localized momentum wall.
• Combined Candle Counter (CCC) Dev (volatility_filter) — Filters out trades during broader market distribution (D-Days) or buying/selling climaxes that indicate terminal exhaustion.

Known failure conditions

• Successive harmonic patterns failing at the same price level (structural breakdown).
• Persistent D-Day signals on CCC indicating a regime shift to high-volume distribution.
• Market volatility shrinking to the point where ASH signals flip within the S/D zone width.

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