Triple-ADX Darvas Grid Breakout
Family: breakout · Regime: trending · Complexity: medium · Asset classes: FX, Indices, Equities · Timeframes: H1, H4
Thesis
Breakouts from Darvas consolidation boxes are statistically more likely to result in sustained trends when triple ADX periods align, indicating 'true' momentum rather than temporary noise. By filtering for active time blocks (VWAP) and data integrity (V54), we isolate high-probability liquidity expansions that respect psychological grid levels.
Components
- V54 stoch-independent-bound-holes (regime) — Used as a 'data integrity' regime filter; the strategy only operates when the Stochastic calculation is 'stable' and within bounds (0-100), filtering out periods of fragmented price data that cause NaN errors in the momentum logic.
- Easy Trend Visualizer (ETV) (direction) — Provides the primary trend direction and strength filter via triple ADX alignment; ensures entry only occurs during high-conviction trend phases (ADX > 30/35).
- Darvas Boxes MetaTrader 5 (entry) — Identifies local consolidation ranges; the breakout of the box top/bottom serves as the mechanical entry trigger.
- ATR SL Finder (exit) — Provides a dynamic trailing exit and initial stop loss based on recent volatility, preventing exits on minor noise while protecting capital.
- Grid Points Utility (risk) — Standardizes risk by aligning position sizing and profit targets with psychological 'Round Number' levels (e.g., every 30 pips/points).
- Stochastic Oscillator (confirmation) — Acts as a momentum confirmation; requires the oscillator to be moving in the direction of the breakout to avoid 'exhaustion' entries.
- TimeBlocks (Multifunctional Period Separator) (volatility_filter) — Filters for active market hours and ensures price is on the 'correct' side of the VWAP balance for the current time block.
Known failure conditions
- Triple ADX alignment persists but price remains range-bound between Grid Points.
- Frequent 'holes' detected by V54 indicator due to low-liquidity price feeds, resulting in no trade signals.
- Darvas boxes fail to form in hyper-volatile environments (e.g., news spikes).
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