Ichimoku-ASH Volume Pullback System

Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX, Equities, Indices · Timeframes: H1, H4

Thesis

Market trends are validated when price structure (Ichimoku) aligns with volume-weighted momentum (MFI) and abnormal participation (RVOL). The strategy assumes that pullbacks (MFI < 20 in an uptrend) are temporary if the underlying directional strength (ASH) remains positive and volume is high, allowing for high-reward-to-risk entries before a trend continuation.

Components

• Ichimoku Kinko Hyo (regime) — Establishes the macro trend regime; price must be above/below the Kumo (Cloud) to filter for high-probability environments.
• Absolute Strength Histogram (ASH) (direction) — Confirms that the relative strength of bulls vs bears supports the direction, ensuring momentum hasn't exhausted despite the regime bias.
• Money Flow Index (MFI) (entry) — Identifies tactical entry points where volume-weighted momentum has temporarily pulled back or is 'hooking' back into the trend direction.
• TopTrend (BBands Stop) (exit) — Provides a volatility-adjusted trailing stop that protects capital and locks in gains as the trend develops.
• Average True Range (ATR) (risk) — Used for dynamic position sizing and setting the initial hard stop-loss relative to current volatility.
• Relative Volume (RVOL) (volatility_filter) — Acts as a liquidity filter to ensure the entry occurs during periods of 'smart money' participation rather than low-volume noise.

Known failure conditions

• Prolonged periods of RVOL < 1.0 indicating a regime shift to low-liquidity ranging.
• Frequent crosses of the TopTrend line without price movement (whipsaws).
• The 'InpMode' of ASH produces values that don't scale with the current asset's point value, leading to signal failure.

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