SuperSmoother Darvas Structure Breakout

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

Thesis

Market trends exhibit inertia that is often obscured by high-frequency noise. By using an Ehlers SuperSmoother to isolate the primary cycle and Darvas Boxes to identify structural 'stages' of a trend, an edge is found by entering breakouts only when low-lag momentum (ZLSMA) and multi-factor volatility (GAS) confirm that the extension has sufficient room to grow before hitting exhaustion (TSI_CD).

Components

Ehlers SuperSmoother Filter (regime) — Establishes the primary trend direction by filtering out high-frequency noise that causes false trend identification.
MACD Classic (direction) — Momentum confirmation; ensures the trend established by the SuperSmoother is supported by increasing momentum.
Darvas Boxes MetaTrader 5 (entry) — Identifies structural breakouts from consolidation zones within the established trend.
TSI Convergence Divergence (TSI_CD) (exit) — Uses the momentum histogram exhaustion to trigger exits before a full trend reversal.
Daily High Low MTF (risk) — Uses previous day extremes as dynamic support/resistance for stop placement and volatility scaling.
Zero Lag Least Squares Moving Average (ZLSMA) (confirmation) — Provides a final low-latency filter to ensure price is actively moving in the direction of the breakout.
GAS Price Levels (volatility_filter) — Filters out trades when price is overextended relative to multi-factor volatility bands.

Known failure conditions

Price remains pinned to the SuperSmoother line for extended periods (low volatility regime failure).
TSI_CD fails to generate a zero-cross or divergence during a rapid 'flash' crash.
Daily High/Low range is tighter than the minimum commission/spread cost.

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