USDX Recursive Delta Trend Flow

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Major FX Pairs (EURUSD, GBPUSD, USDJPY) · Timeframes: H1, H4

Thesis

Price trends in major currency pairs are driven primarily by the relative strength of the US Dollar; by isolating the USD's macro regime and entering only when micro-volatility (Trendilo) and synthetic order flow (Footmap) align with a recursive trend trigger, an edge is found in high-conviction breakout phases.

Components

• USDX (US Dollar Index) Candle Indicator (regime) — Establishes the macro USD regime; we only trade in the direction of the USD index trend to ensure broad dollar-linked momentum.
• ADX / Connectable [Azullian] (direction) — Filters for trending environments; prevents trading in low-volatility chop where recursive averages fail.
• Recursive Moving Average Unlimited (entry) — Provides the execution trigger via price-to-composite-average crossover, capturing accelerated trend moves.
• Stochastic Oscillator (exit) — Identifies local exhaustion points for profit taking before price reverts to the recursive mean.
• Q-Levels V2.2 (risk) — Provides fixed structural reference points for stop-loss placement and sizing based on market-wide 'gamma' or support levels.
• Footmap – Heat & Volume [v1] (confirmation) — Validates entries by ensuring synthetic volume delta aligns with the price breakout.
• Trendilo MT5 (volatility_filter) — Functions as a volatility band filter to ensure the current move has sufficient normalized variance.

Known failure conditions

• Prolonged USD range-bound behavior causing the USDX Index to flatline across its 17-period MA.
• Synthetic Footmap delta persistently contradicting price action (indicating a breakdown in the linear volume approximation).
• Sudden shifts in central bank policy that invalidate manually entered Q-Levels before the text string is updated.

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