Lorentzian Wave Structure Impulse

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Equities, Crypto, Forex · Timeframes: 1H, 4H, 1D

Thesis

Market cycles (Elliott Waves) create high-probability momentum windows that can be statistically isolated using Lorentzian distance classification. By entering only when a motive wave is confirmed by a structural break (Flip Flop) and a historical price-pattern similarity (Lorentzian), we can filter out noise and capture the 'heart' of a trend (Wave 3). The edge lies in the confluence of structural confirmation and machine-learned momentum clusters.

Components

• Elliott Wave [LuxAlgo] (regime) — Provides the macro structural regime; entries are only permitted during motive wave phases (1, 3, 5) to ensure we are trading with the primary cycle.
• Flip Flop Indicator (direction) — Filters direction by requiring a break of the high of the lowest bearish bar, ensuring momentum has shifted from a local bottom before entry.
• Lorentzian Classification (entry) — The high-precision entry trigger; uses KNN to find historical analogues to the current price/momentum features.
• Connect MACD (Azullian) (exit) — Serves as the trend-exhaustion exit; closes positions when momentum cycles against the entry direction.
• Bullish Pivot Detector (risk) — Defines the stop-loss level based on the 'Running Low' of the local pivot structure that preceded the entry.
• BB edge cases (volatility_filter) — Used as a volatility sanity check to ensure the standard deviation of price is non-zero and data is not 'flat' or corrupted.

Known failure conditions

• Elliott Wave counts frequently resetting (Wave 4 overlap into Wave 1 territory) indicating a non-motive environment.
• Lorentzian Classification output toggling between Buy/Sell every bar (signal instability).
• Flip Flop levels converging to a range less than 0.5% of asset price.

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).