Multi-Filter Trend Strategy with Displacement and Confluence Scoring

Summary

This strategy combines several layers to seek directional entries. A volatility-adjusted moving-average regime classifies bullish or bearish trends, while Bollinger Band width distinguishes compression from other volatility states. A displacement signal blends normalized Bollinger position, CCI, rate of change, and volume-weighted candle movement to identify stronger directional momentum. Optional fair value gap checks and UTC session filters further restrict entries.

A confluence score combines current-timeframe trend, momentum, volatility, structure, and volume cues with a higher-timeframe score, then applies separate thresholds for longs and shorts. Positions use ATR-based stops and reward-to-risk targets, with optional trailing stops and exits on regime or displacement changes. The script includes a higher-timeframe request configured with lookahead, which can introduce future-data leakage in historical results. No performance evidence is supplied, so the rules and execution assumptions require careful validation before drawing conclusions.

Key ideas

• A volatility-adjusted moving average and ATR bands define the directional regime.
• The displacement measure combines price oscillators with candle body and relative volume information.
• A weighted confluence score blends current-timeframe signals with a higher-timeframe bias.
• Session and fair value gap filters are configurable entry conditions.
• ATR-based stops, reward-to-risk targets, and optional trailing logic manage exits.
• The higher-timeframe calculation uses lookahead, which may compromise historical backtests.

Tags

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