LinReg-RCI Sweep Continuity Strategy

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX, Indices, Commodities · Timeframes: M15, H1

Thesis

The strategy bets that institutional 'liquidity sweeps' (stop runs) during high-volume sessions provide a high-probability entry point when aligned with the broader statistical trend (LinReg) and cyclical momentum (RCI). By targeting psychological grid levels, the strategy exploits the behavioral tendency for price to cluster around round numbers after a volatility event.

Components

• Linear Regression (LINREG) (regime) — Provides the macro trend filter via the slope of the least-squares line; ensures we only trade in the direction of the mathematical price drift.
• ALMA with Floating Levels (direction) — Determines the micro-regime; the floating levels identify when the price is overextended or returning to a mean, providing a smoothed directional filter.
• Arrows Base Template (entry) — Serves as the concrete trigger mechanism, firing an entry signal when the regime, direction, and confirmation indicators align.
• Grid Points Utility (exit) — Uses psychological 'round number' levels as fixed targets, exploiting the tendency for price to gravitate toward or stall at significant point intervals.
• The Daily Sweep (risk) — Provides the structural anchor for risk; the stop loss is placed at the 'sweep' low/high, leveraging the ICT logic that these levels represent liquidity grabs.
• Rank Correlation Index (confirmation) — Identifies cyclical extremes; ensures entries occur when price momentum (based on rank) is emerging from an oversold/overbought state.
• Daily High Low MTF (volatility_filter) — Filters out entries that occur outside the previous day's range unless a breakout is statistically supported, reducing 'middle of nowhere' trades.

Known failure conditions

• Prolonged 'flat' Linear Regression slope indicating a bracketed market where RCI oscillates without trend.
• Price repeatedly breaching Grid Points without retracement, suggesting a parabolic move that ignores psychological levels.
• Liquidity sweeps occurring outside the defined session window, rendering the risk anchor (The Daily Sweep) invalid.

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).