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Trend Continuation · The Four-Engine Stack

Independent confirmations, combined.

Must-pass engines

4

Optional confluence

2

A-grade score

≥ 5 / 6

Session

Gate, not a point

Four must-pass, two optional

The core stack confirms; the confluence stack sharpens.

The four core engines are non-negotiable: price outside the Ichimoku cloud with Tenkan and Kijun ordered in trend direction, MACD histogram on the right side of zero with slope agreeing, momentum bias at strict thresholds, and ADX at 20 or better and rising. The two optional filters — the 9/21/55/233 EMA stack in perfect order, and ATR(14) slope positive — are toggles: on for fewer, cleaner signals; off for more entries with some counter-trend leakage. The split exists because must-pass conditions define the regime while confluence conditions grade it.

RSI or MFI

The momentum engine has two interchangeable hearts.

The stack's momentum read can run on RSI(14) or MFI(14) — the volume-weighted variant — and the choice is a liquidity decision, not a preference:

  • RSI is the baseline: purely price-based, reliable on every pair, immune to tick-volume quality.
  • MFI adds participation: on majors, and on crosses during London/NY hours, tick volume tracks real liquidity well enough that MFI confirms whether pushes have flow behind them.
  • On thin crosses and off-hours, tick volume misleads — RSI is the dependable read there.
  • Thresholds are strict either way: ≥ 60 for bullish bias, ≤ 40 for bearish — midline drift does not qualify as strength.

The score

Six filters, one point each. Session is a gate, not a point.

Every filter that passes contributes one point to a 0–6 confluence score plotted on every bar: 5–6 is a green, A-grade continuation regime; 3–4 is yellow, mixed; 0–2 is red, avoid. The session filter deliberately scores nothing — it gates. Being inside the London or New York window is a precondition for any signal existing at all, not evidence of continuation quality, and folding it into the score would let five real confirmations plus a clock masquerade as six.

Failure independence

04

Four engines were chosen for how differently they fail.

The stack's engines were selected less for individual accuracy than for uncorrelated blind spots: the conditions that fool one leave the others unimpressed. Stacking four engines that fail the same way would produce confident nonsense; stacking four that fail differently produces a veto system — which is the entire point.

Reference

Each closed trade logs its worst adverse excursion and best favorable excursion. The lab plots them into quadrants and pairs the picture with capture efficiency, giveback, and fee drag - then the EV Driver Diagnostics rank which repair (entry location, coefficient, trail logic, cost avoidance) would move net expectancy most.

Every trade plotted by pain taken (MAE) versus opportunity generated (MFE). The four quadrants diagnose entry precision and exit management at a glance.

CLEAN: low pain, high opportunitySURVIVORS: works, but absorbs painQUIET: low pain, low reachBLEEDERS: pain without payoffMAE (stop consumed) →MFE (opportunity) →

Reference

The stack, engine by engine

EngineSettingsPass conditionWhat it reads
Ichimoku9 / 26 / 52Price outside cloud · Tenkan/Kijun ordered · thick cloud = strengthStructural position
MACD12 / 26 / 9Histogram right side of zero, slope in trend directionMomentum acceleration
RSI or MFI14≥ 60 bullish · ≤ 40 bearishParticipation and flow
ADX14≥ 20 and risingTrend strength building
EMA stack (optional)9 / 21 / 55 / 233Perfect alignment in trend directionMulti-gear trend agreement
ATR slope (optional)14Expanding in trade directionVolatility expansion

Doctrine

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This module doesn't work alone.

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