OB-Momentum Pivot Confluence Strategy
Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Forex (Majors), Equities (Indices) · Timeframes: M15, H1
Thesis
Institutional participants create 'Order Blocks' during periods of high-momentum price discovery (as identified by ROC_4). These zones represent areas of unfilled liquidity. By entering on the first retest of these zones, but ONLY when aligned with the hierarchical trend (SuperTrend/MA Ribbon) and confirmed by momentum, we capitalize on the 'second leg' of institutional moves while using spread-filtering to protect against retail-unfriendly environments.
Components
- SuperTrend & Pivots (regime) — Establishes the macro-regime; SuperTrend provides the trend filter while Daily Pivots provide institutional liquidity levels.
- Momentum (direction) — Ensures that price is moving in the desired direction with sufficient velocity before committing to an order block entry.
- Sonarlab - Order Blocks (entry) — Identifies high-momentum supply/demand zones where institutional activity is concentrated for entry triggers.
- HiLo Activator (Gann Style) (exit) — Acts as a dynamic trailing stop that reacts to price volatility and trend exhaustion.
- Spread Display and Alert (risk) — Filters entries during low-liquidity/high-cost environments to ensure the edge is not eroded by transaction costs.
- Moving Average Ribbon (chingc) (confirmation) — Provides multi-timeframe trend confirmation to ensure the entry is aligned with the 'path of least resistance'.
Known failure conditions
- High spread environments (news events) exceeding 'AlertIfSpreadAbove' threshold.
- Long periods of price oscillation around the Daily Pivot line (pivot-churn).
- Order blocks being mitigated/broken immediately after formation in low-momentum environments.
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