MACD-Ichimoku Liquidity Sweep Hybrid

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX (Major Pairs), Equity Indices (US30, NAS100) · Timeframes: M15 (Execution), D1 (Bias)

Thesis

Market prices tend to seek liquidity (sweeps) before continuing in the direction of the dominant trend. By using EMA for regime and ICT-style sweeps for direction, we can enter trades at 'discount' or 'premium' levels within a trend, using Ichimoku to confirm the resumption of momentum and Stochastics to exit when the immediate cycle is exhausted.

Components

• MACD EMA Crossover Visualizer (regime) — Acts as a high-level regime filter to ensure trades are only taken in the direction of the dominant intermediate-term trend.
• The Daily Sweep (direction) — Identifies institutional liquidity grabs (sweeps) and market structure shifts (FVG) to determine the intraday tactical direction.
• Ichimoku Kinko Hyo (entry) — Used to time the entry after a liquidity sweep. A price cross of the Tenkan/Kijun signifies momentum resumption in the sweep direction.
• OTLIB Stochastic Oscillator (exit) — Identifies mean-reversion exhaustion. The exit is triggered when momentum reaches oversold/overbought extremes against the entry.
• Spread Display and Alert (risk) — Prevents entry during news events or low-liquidity periods where the cost of trade (spread) exceeds the expected edge.

Known failure conditions

• Persistent high-spread environments where transaction costs exceed 20% of the Average True Range.
• Markets entering a 'non-trending' consolidation where MACD EMAs remain flat for extended periods.
• Daily bias indicators showing conflicting signals (no clear H1>H2>H3 sequence) for more than 5 consecutive days.

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