Wave-Explosion Regression Trend Finder

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

Thesis

Market trends are most tradable during 'motive' phases (Waves 3 and 5) where momentum and volatility align. By filtering for these structural phases using Elliott Waves and confirming the 'explosion' of momentum via WAE, we enter at the point of maximum acceleration. Standard Error is used for risk to ensure stops are placed outside the 'noise' of the regression line, rather than at arbitrary price levels.

Components

• Heiken Ashi (Standard MT5) (regime) — Defines the prevailing trend regime; trade direction must align with HA candle color to ensure momentum alignment.
• Elliott Wave [LuxAlgo] (direction) — Identifies the structural cycle; entries are only valid during confirmed Wave 3 or Wave 5 (motive) or Wave C (corrective) stages to capture the strongest impulse legs.
• Waddah Attar Explosion (WAE) (entry) — Serves as the primary execution trigger when momentum (MACD slope) breaks out of the volatility envelope (BB width).
• Restu Kaioh Scalping Indicator (exit) — Identifies exhaustion points via stochastic overbought/oversold levels to trigger exits before the impulsive wave completes.
• Standard Error of Regression (STDERR) (risk) — Quantifies the 'noise' or dispersion around the trend; used to set dynamic stop losses that account for regression inaccuracy.
• Momentum (Example) (confirmation) — Secondary confirmation to ensure the rate of change is accelerating in the direction of the wave.
• Bollinger Bands (volatility_filter) — Volatility filter to prevent entries during low-volatility 'squeezes' where WAE signals might be false positives.

Known failure conditions

• Price breaks the start of Wave 2 or 4 (Elliott Wave invalidation) before hitting TP.
• Standard Error remains high while price moves sideways, leading to wide stops and poor R:R.
• Heiken Ashi flip-flops rapidly in a low-volatility range (choppiness).

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).