Order Flow Breakout Verifier (OFBV)

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

Thesis

Breakouts are only sustainable if backed by aggressive market participation (CVD) and high price sentiment. By filtering DeMark's REI momentum through a structural breakout (TBO) and an order flow regime (GHOST), we isolate high-probability trend expansions while using volatility-based grids for adaptive risk management.

Components

GHOST — OrderFlow Intelligence (regime) — Establishes the market regime by ensuring cumulative volume delta (CVD) and sentiment align with the trade direction, filtering out low-conviction price moves.
TA Coverage Probe (ROC 14) (direction) — Provides the primary momentum direction; only trades in the direction of the 14-period Rate of Change.
Range Expansion Index (REI) (entry) — Acts as the precision entry trigger by identifying the moment price velocity accelerates out of a neutral state (crossing the zero line).
Ichimoku Kinko Hyo (exit) — The Kijun-sen (26-period midpoint) acts as the trailing exit trigger, representing the medium-term equilibrium level.
Grid Bot [Grid range plugin] Two Moving Avarages [psyll] (risk) — Provides dynamic volatility-based boundaries (Grid High/Low) for hard stop-loss placement and position sizing.
TradeBreakOut (TBO) (confirmation) — Confirms structural breakouts by measuring price deviation from 50-period highs/lows; prevents entries within established congestion zones.

Known failure conditions

Price reaches the TBO breakout level but GHOST CVD remains neutral or negative (Volume-Price Divergence).
REI oscillates rapidly around the zero line while price remains within the Grid Bot boundaries (Low Volatility Whipsaw).
Market sentiment (GHOST) stays above 60% while price makes new lows (Sentiment Trap).

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