Confluence Trading with Regime, Pressure, Participation, and ATR Risk Controls

Summary

This strategy combines a market regime model with several directional signals to qualify long and short trades. It identifies swing pivots, builds smoothed ATR bands around their midpoint, and changes its regime state when price crosses a band and satisfies a confirmation delay. A normalized distance from a moving average measures pressure, while a volume-weighted price-bin calculation locates the most active price area in a rolling range. Candle direction and volume also form a smoothed proxy for buying and selling pressure.

A confluence score adds points for regime direction, pressure, delta, recent impulse or gap structure, position relative to the high-volume axis, and higher-timeframe bias. Entries require a configurable score threshold and can be gated by session and cooldown settings. Exits use ATR-based stops, targets, and optional trailing stops. The script uses confirmed higher-timeframe values and confirmed bars for key signals, but its code alone provides no evidence of profitability or robustness. Its volume-derived measures are proxies, and results depend on instrument, timeframe, settings, and execution assumptions.

Key ideas

• The regime engine uses confirmed pivot levels and smoothed ATR bands to classify directional conditions.
• A normalized moving-average distance and a rolling volume-by-price axis contribute measures of pressure and participation.
• Smoothed candle-direction volume provides a delta-like signal, but it does not use trade-level aggressor data.
• Confluence scores combine regime, momentum, structure, participation, and optional higher-timeframe bias before entry.
• ATR stops, targets, trailing exits, session gating, and cooldowns provide configurable trade management.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.