Flat Filter & Residual Impulse Strategy

First avoid chop, then harvest the move left after breakout.
This plan filters flats/ranges and only trades the residual impulse once price breaks out and retests cleanly.

Idea in two phases

1. Flat filter: detect a genuine range (narrow volatility / overlapping candles / MA squeeze).
2. Residual impulse: after a breakout + retest, join the follow‑through that often remains.

Tools

• Structure boxes (mark the range high/low).
• Optional: 20/50 EMAs to see squeezes; ATR(14) for risk; session markers.

Flat filter — when to skip

Consider it flat when at least 2–3 of these align:

• ATR(14) below its 3‑month median for the timeframe.
• 5–8 consecutive candles with overlap and small bodies.
• 20 EMA inside/near 50 EMA, no separation.
  If flat → no trades. Wait for a clean level break.

Breakout → Residual impulse entry

1. Break: full candle closes beyond the box high/low.
2. Retest: price tags the broken level without closing back inside.
3. Trigger: rejection/engulfing in the breakout direction → enter.

Stops & sizing:

• SL beyond the opposite edge of the box or ATR(14) × 1.5–2.0.
• Position size from risk % and SL distance.

Take Profit & management

• Partial at 1.5R–2R, trail the rest behind micro‑swings or 20 EMA.
• If price closes back inside the former box → consider exit.

Risk & notes

• Risk ≤ 1% per trade, max 2 active in correlated pairs.
• Avoid entries 30–60 min before top‑tier news.
• Backtest the flat filter thresholds per instrument & timeframe.