Shockwave

⚡️ Shockwave – Precision Momentum Strategy
🔹 Purpose
Shockwave is a precision-engineered trend and momentum strategy designed for aggressive, high-conviction trades. Built for volatile markets like crypto, this system enters only when trend, volume, and momentum are fully aligned — then exits intelligently using layered profit targets and trend weakening logic.

It filters out false breakouts, traps, and low-quality setups using advanced multi-factor confirmation. Ideal for trend-following traders who want cleaner signals, no repainting, and adaptive position handling.

🔹 Indicator Breakdown
1️⃣ ZLEMA + Gradient Filter (Trend Core)
Defines the trend using a Zero Lag EMA (ZLEMA) for responsiveness.

Gradient slope confirms acceleration or weakening in trend direction.

Uptrend: ZLEMA is rising and slope > 0.

Downtrend: ZLEMA is falling and slope < 0.

2️⃣ Smoothed CCI (Momentum Confirmation)
Uses ZLEMA as the source for CCI to avoid noise.

Bullish momentum: CCI rising above 0.

Bearish momentum: CCI falling below 0.

Filters out chop and premature entries.

3️⃣ Volume Spike Filter
Median-based filter confirms breakout volume integrity.

Requires volume > 1.5x median of previous candles.

Avoids low-volume whipsaws.

4️⃣ Vortex Indicator (Trend Strength Confirmation)
Confirms directional conviction by comparing VI+ vs VI–.

Long: VI+ > VI– and threshold difference is met.

Short: VI– > VI+ and trend strength is validated.

5️⃣ Wick Trap Filter (Reversal Trap Detection)
Blocks entries on manipulative upper/lower wick patterns.

Longs rejected if upper wick > 1.5× body and close is weak.

Shorts rejected if lower wick > 1.5× body and close is strong.

🔹 Strategy Logic & Trade Execution
✅ Entry Conditions
A trade is entered only when all the following align:

ZLEMA trend direction is confirmed.

CCI momentum matches the trend.

Volume spike confirms participation.

Vortex difference meets strength threshold.

No wick trap is present.

✅ Exit Conditions

TP1: 50% of the position is closed at the first profit level.

TP2: Remaining 50% is closed at the second target.

Weak Trend Exit: If ZLEMA slope flips against the trade, the position is closed early.

A 1-bar cooldown delay is enforced after closing to prevent same-bar reentry.

🔹 Take-Profit System
TP1: 50% close at +2% for longs / –2% for shorts

TP2: Full close at +4% for longs / –4% for shorts

Limit orders are used for precise profit-taking

TP1/TP2 status is tracked and displayed in the live dashboard

🔹 Risk Management (Important)
🚫 This strategy does not include a stop-loss by default.

Trades are exited using trend reversal detection or TP targets.

💡 Suggested risk controls:

Add a manual stop-loss based on recent swing high/low

Use appropriate position sizing based on volatility

Apply the strategy in strong trending environments

🔹 Default Backtest Settings
Initial Capital: $1,000

Position Size: 10% of equity per trade

Commission: 0.05%

Slippage: 1

Strategy Date Filter: Adjustable (default: 2023–2029)

🔹 How to Use Shockwave
Apply to any chart (best results on 1H or higher).

Review backtest performance.

Adjust take-profit percentages or thresholds as needed.

Use in strongly trending markets — avoid sideways ranges.

Add your own stop-loss if desired.

⚠️ Disclaimer
This strategy is for educational and informational purposes only. It is not financial advice. Trading involves risk, and past performance does not guarantee future results. Always test thoroughly and manage your own risk.

🚀 Why Use Shockwave?
✔ Multi-layer confirmation for high-quality entries
✔ Non-repainting logic for backtest/live consistency
✔ Adaptive trend/momentum filtering
✔ Dual profit targets for smart trade management
✔ Visual dashboard with live tracking