Inverted ADX Liquidity Pullback

Family: pullback · Regime: trending · Complexity: medium · Asset classes: FX, EQUITIES, CRYPTO · Timeframes: H4, M15

Thesis

Markets exhibit 'trending momentum' interspersed with 'mean-reversion cycles.' By utilizing the H4 ADX to define the primary trend (correcting for its internal logical inversion) and entering on M15 MACD crossovers that occur on the 'cheap' side of the zero-line, we isolate high-probability trend resumptions. The edge is further refined by ensuring the MACD turn is supported by RSI and exited via a volatility explosion filter (WAE), while risk is tethered to structural 20-period liquidity levels.

Components

Switch Timeframes Keys (regime) — Functions as the multi-timeframe regime filter; H4 establishes the 'anchor' trend while M15 provides the execution environment.
ADX Crossing INGM (direction) — Used on the Higher Timeframe (H4) to establish directional bias. Note: Due to the code's logical inversion, the 'Sell' signal (+DI > -DI) is treated as the Bullish trend filter.
MACD signal turn (entry) — Identifies high-probability entries where momentum shifts occur in 'discounted' or 'premium' territory (crosses below/above the zero line).
Waddah Attar Explosion (WAE) (exit) — Acts as a volatility-based exit, closing trades when price momentum falls below the explosion threshold or trend acceleration reverses.
Custom 004 Liquidity Map with Drawings (risk) — Identifies the 20-period structural liquidity pools (HH/LL) to serve as hard stop-loss levels and basis for position sizing.
Relative Strength Index (RSI) (confirmation) — Provides confirmation that the MACD turn is occurring at an extreme or via momentum divergence, reducing 'mid-range' chop entries.

Known failure conditions

ADX ADX Crossing INGM remains in a 'Buy' signal (inverted bearish) while price makes new 20-day highs.
WAE 'Explosion' line remains below the 'DeadZone' for more than 50 bars, indicating a low-volatility environment where MACD turns are noise.
Liquidity Map levels (20-period HH/LL) are excessively wide (e.g., >3 ATR), leading to sub-optimal R:R.

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