McNicholl-Azullian Momentum Stack

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Equities, FX, Crypto · Timeframes: H1, H4, D1

Thesis

The strategy assumes that market momentum can be captured by identifying high-probability trend regimes (smoothed candles) and using a lag-minimized trigger (MCNMA) to enter before the move is exhausted, while using a standard-lag indicator (MACD Classic) to exit as the broader cycle concludes. The edge lies in entering earlier than standard trend-followers while maintaining a conservative exit.

Components

• MA-Candlesticks (regime) — Acts as a 'smoothed' regime filter. By comparing the MA of the Close to the MA of the Open, we filter out noise and ensure the underlying trend structure (regime) is consistent.
• Connect MACD (Azullian) (direction) — Provides the directional bias. Its modular framework is used here to identify high-conviction momentum when the MACD line is on the correct side of the zero-line and its own signal line.
• McNicholl EMA (MCNMA) (entry) — Serves as the low-lag trigger. Its six-stage EMA cascade allows for extremely fast response to price changes, catching the start of a momentum burst after the regime and direction are confirmed.
• MACD Classic (3-Line) (exit) — Used for momentum exhaustion detection. While the entry is fast (MCNMA), the exit uses a standard calculation to capture the broader cycle completion and avoid exiting too early on micro-volatility.
• Average True Range (ATR) (risk) — Provides volatility-adjusted risk parameters to define the 'breathing room' for the zero-lag entry.

Known failure conditions

• Strategy enters a 'sawtooth' pattern where MCNMA triggers frequently while the MACD Classic exit signal remains stagnant.
• Price action enters a low-volatility 'squeeze' where MA-Candlestick Open/Close values converge within 0.1 ATR.
• MCNMA 'overshoots' during news events, triggering entries at the peak of a spike before mean-reversion.

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).