Triple-ADX Cyclic Momentum Breakout

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

Thesis

Market participants exhibit herd behavior during high-velocity price movements; by identifying the convergence of multi-timeframe trend strength (ETV) and cyclic exhaustion (DSP), we can exploit the 'fat-tail' portion of a trend while exiting before mean-reversion occurs at institutional volume nodes.

Components

• Vertical Horizontal Filter (VHF) (regime) — Filters out low-volatility congestion phases where triple-ADX and momentum signals are prone to whipsaws.
• Bulls Power (Elder Ray) (direction) — Identifies if the current momentum is sufficiently strong to support the breakout direction.
• Easy Trend Visualizer (ETV) (entry) — Acts as the primary execution trigger by detecting multi-timeframe ADX alignment.
• Ehlers Detrended Synthetic Price (DSP) (exit) — Signals exhaustion by identifying when the cyclic component of price reaches a mathematical peak, suggesting a trend pause.
• Dynamic Supply and Demand Zones [AlgoAlpha] (risk) — The Low Volume Nodes (LVN) within identified zones suggest areas of low resistance for price movement, providing logical SL/TP anchors.
• XARD Channel (confirmation) — Provides structural confirmation by ensuring the fast EMA channel (144) is aligned with the price breakout.

Known failure conditions

• Hypothesis fails if VHF remains high during price consolidation (false trend identification).
• Fails if DSP cycle peaks occur simultaneously with ADX alignment (immediate exhaustion).
• Fails if Dynamic Zones lag so significantly that the SL is placed within the previous trend's noise.

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