TII-AD Intensity Pullback System

Family: pullback · Regime: trending · Complexity: medium · Asset classes: Equities, Forex, Commodities · Timeframes: H1, H4, D1

Thesis

Institutional trends are driven by persistent accumulation/distribution (A/D) and high-intensity price displacement (TII). By entering during brief momentum exhaustion phases (RSI pullbacks) within these strong trends, verified by noise-corrected momentum (RSX), we exploit the behavioral tendency of trend continuation after minor profit-taking.

Components

• Trend Intensity Index (TII) (regime) — Filters for strong trend environments to avoid the 'lag' pitfalls of the double-MA by ensuring we only enter when momentum has established momentum intensity > 80 or < 20.
• Accumulation/Distribution (A/D) Index (direction) — Ensures the price move is backed by volume participation; we require A/D to be trending in the direction of the trade to avoid low-volume retail traps.
• Relative Strength Index (RSI) (entry) — Acts as a 'coiling' mechanism; we enter on a mean-reversion 'hook' (cross above 30/below 70) within the context of the larger TII trend.
• TSI Convergence Divergence (TSI_CD) (exit) — Captures the exhaustion of momentum through the histogram crossover, providing an exit before price action fully reverses.
• SuperTrend MT5 (FxGeek) (risk) — Provides a volatility-adjusted trailing stop and initial risk anchor based on ATR, scaling risk to current market breadth.
• Corrected RSX (confirmation) — Uses a noise-reduction layer to confirm that the RSI entry signal isn't a minor tick, but a sustained shift in momentum.

Known failure conditions

• Price moves in a 'sawtooth' pattern where ATR remains high but net displacement is zero.
• External TSI custom indicator fails to load, rendering the exit logic non-functional.
• Persistent divergence between A/D and Price indicates a breakdown in the volume-price relationship.

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).