PhantomFlow Trend Detection from Fractal Swing Structures
Summary
PhantomFlow identifies trend from market structure rather than smoothing price and reading its slope. It detects five-bar fractal highs and lows, which are confirmed two bars after the swing, then applies a zigzag filter so accepted pivots alternate between highs and lows. Three consecutive highs stepping downward or three lows stepping upward form a liquidity wave. The close’s position relative to the latest wave’s pivot levels determines whether the indicator shows an uptrend, downtrend, or neutral state.
Candles are colored with a gradient based on the close’s location within the active wave’s price band. The direction indicates the trend state, while fading color signals a move toward the level that would invalidate that structure. The text proposes using the state as a directional filter, wave pivots as structural stop references, and neutral periods as a possible regime cue. These are described applications, not demonstrated results: no backtest or comparative evidence is provided. Fractal confirmation adds lag, and the suggested zigzag settings depend on timeframe, so the indicator’s usefulness needs independent testing.
Key ideas
- The indicator identifies centered fractal highs and lows and confirms them after two bars.
- A zigzag filter keeps pivots alternating and replaces same-side pivots with more extreme ones.
- Three descending swing highs or three ascending swing lows create a liquidity wave and its trend threshold.
- The close relative to active wave thresholds determines the uptrend, downtrend, or neutral state.
- Candle gradients show price location within the wave band, with fading colors approaching structural invalidation.
- The document proposes applications but provides no backtest evidence, and the swing confirmation introduces lag.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.