**QUANTTOWER**



LINEBREAK CHART BASIC STRATEGY:



Directional Flow Strategy – Technical Specification

Strategy Overview



This strategy is a directional flow system that evaluates real-time market pressure at specific structural price levels derived from each bar’s volume distribution.



The strategy does not attempt to predict future price. Instead, it evaluates order-flow pressure when price interacts with predefined trigger levels and executes trades when pressure confirms a high-probability move.



A custom indicator called MarketPressureScore acts as the decision engine.



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



Core System Components

1\. Market Pressure Engine



The system calculates a single value called:



MarketPressureScore



This value measures the strength and direction of recent order flow within a short time window.



Interpretation:



Positive value  → buying pressure

Negative value  → selling pressure

Near zero       → weak or neutral pressure



Trades are only permitted when the pressure magnitude exceeds a predefined threshold.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



2\. Structural Price Trigger System



The Market Pressure indicator is not evaluated continuously.



Instead, it is evaluated only when price reaches specific structural trigger levels.



These trigger levels are derived from:



the open price of each new bar



histogram cluster extremes from prior bars



\##########################################################################

Trigger Level 1 – New Bar Open



Every time a new bar opens, the following occurs:



Evaluate MarketPressureScore



If pressure meets the required threshold, the system may initiate a position depending on the current directional structure.



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



3\. Directional Structure Definition



Directional structure is determined using the most recent completed bar.



Upward Direction:

At least one completed bar closes higher than the previous bar.



Downward Direction:

At least one completed bar closes lower than the previous bar.



This directional state determines which trade direction is allowed.



**NOTE: FOR "ALL POSITIONS"...SHORT MARKET ORDERS CAN ONLY BE INITIATED IF THE PRICE IS ABOVE THE OPEN PRICE IN A UPWARD DIRECTION \& LONG MARKET ORDERS CAN ONLY BE INITIATED IF PRICE IS BELOW THE OPEN PRICE IN DOWNWARD DIRECTION!!!!!**



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



4\. Trigger Levels During Upward Direction



When an upward direction is detected:



The strategy creates trigger levels using:



Highest histogram price from each prior bar



Each time price crosses one of these levels, the system performs:



Evaluate MarketPressureScore



If pressure confirms the condition, the strategy may open a position.



Allowed Trade Direction



During an upward directional state, the system only takes:



SHORT positions





Therefore:



Trigger events

\+ confirmed pressure

→ initiate SHORT trade



These trades are effectively momentum exhaustion entries against the most recent upward structure.



**NOTE: FOR "ALL POSITIONS"...SHORT MARKET ORDERS CAN ONLY BE INITIATED IF THE PRICE IS ABOVE THE OPEN PRICE IN A UPWARD DIRECTION \& LONG MARKET ORDERS CAN ONLY BE INITIATED IF PRICE IS BELOW THE OPEN PRICE IN DOWNWARD DIRECTION!!!!!**



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



5\. Trigger Levels During Downward Direction



When a downward direction is detected:





The strategy creates trigger levels using:



Lowest histogram price from each prior bar





Each time price crosses one of these levels, the system performs:



Evaluate MarketPressureScore



If pressure confirms the condition, the strategy may open a position. 



Allowed Trade Direction



During a downward directional state, the system only takes:



LONG positions



Therefore:



Trigger events

\+ confirmed pressure

→ initiate LONG trade



These trades act as momentum exhaustion entries against the most recent downward structure.



**NOTE: FOR "ALL POSITIONS"...SHORT MARKET ORDERS CAN ONLY BE INITIATED IF THE PRICE IS ABOVE THE OPEN PRICE IN A UPWARD DIRECTION \& LONG MARKET ORDERS CAN ONLY BE INITIATED IF PRICE IS BELOW THE OPEN PRICE IN DOWNWARD DIRECTION!!!!!**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



6\. Optional Partial Profit Mechanism



An optional feature may use opposite histogram extremes as partial exit points.



Concept:



When holding a long position:



If price crosses high histogram levels, the system may trigger a partial take-profit.



When holding a short position:



If price crosses low histogram levels, the system may trigger a partial take-profit.



This feature should remain configurable, because:



it can smooth the equity curve



but it may reduce total profit during extended trends





**NOTE: FOR "ALL POSITIONS"...SHORT MARKET ORDERS CAN ONLY BE INITIATED IF THE PRICE IS ABOVE THE OPEN PRICE IN A UPWARD DIRECTION \& LONG MARKET ORDERS CAN ONLY BE INITIATED IF PRICE IS BELOW THE OPEN PRICE IN DOWNWARD DIRECTION!!!!!**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



7\. Trade Execution Logic



At every trigger level the following process occurs:



1\. Price crosses trigger level

2\. Calculate MarketPressureScore

3\. Compare score against threshold

4\. Check directional state

5\. If conditions align → execute trade



Example:



Upward direction detected

Price crosses histogram high

Pressure confirms selling

→ Open SHORT position



Example:



Downward direction detected

Price crosses histogram low

Pressure confirms buying

→ Open LONG position





**NOTE: FOR "ALL POSITIONS"...SHORT MARKET ORDERS CAN ONLY BE INITIATED IF THE PRICE IS ABOVE THE OPEN PRICE IN A UPWARD DIRECTION \& LONG MARKET ORDERS CAN ONLY BE INITIATED IF PRICE IS BELOW THE OPEN PRICE IN DOWNWARD DIRECTION!!!!!**



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



8\. Strategy Flow Summary



System operation follows this sequence:



New bar opens

        ↓

Determine directional structure

        ↓

Create histogram trigger levels from prior bars

        ↓

Price crosses trigger level

        ↓

Evaluate MarketPressureScore

        ↓

If pressure confirms AND trade direction allowed

        ↓

Execute position

        ↓

Optional partial exit at opposing histogram levels



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



9\. Core Strategy Principles



The strategy combines three decision layers:



Structural direction

Volume distribution extremes

Real-time market pressure



Trades are only executed when all three components align.



This design ensures the system reacts only to structural price interactions supported by real order flow.



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_





MARKET PRESSURE SCORE EVALUATION Engine:



Before your Line Break system enters a trade, check if real market pressure exists.



If pressure is weak → do not trade

If pressure is strong → allow the trade



This becomes a single number filter your program reads.



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



1\. Concept in One Sentence



The program measures how fast price is moving and in what direction over the last 12 seconds.



This produces one variable:



MarketPressureScore

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



2\. Data the Program Needs



The programmer only needs:



Tick price



Tick timestamp



Optional (but better):



Trade volume



Your platform already provides tick data.



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



3\. Use Last 12 Seconds of Ticks



Every time a new tick arrives:



Store all ticks that occurred in the last 12 seconds.



Example structure:



struct Tick

{

    double price;

    long timestamp;

}



STORE THEM IN A LIST



Remove any ticks where:



tick.timestamp < currentTime - 12 seconds



This keeps only the most recent 12 seconds of market activity.



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



4\. Calculate Price Change



Measure how much price moved.



priceChange = lastTick.price - firstTick.price



EXAMPLE:



Tick1 = 2012.4

Tick10 = 2013.1

priceChange = 0.7



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



5\. Calculate Time Duration



timeDuration = lastTick.timestamp - firstTick.timestamp



EXAMPLE:





12 seconds (or slightly less depending on tick timing)



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



6\. Calculate Tick Velocity



Velocity tells you how fast price is moving.



velocity = priceChange / timeDuration



EXAMPLE:



0.7 / 12 = 0.058



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



7\. Calculate Direction



Direction is simply:



if(priceChange > 0)

direction = +1

else

direction = -1



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



8\. Market Pressure Score



Combine velocity and direction.



MarketPressureScore = velocity \* direction



EXAMPLE:



Fast buying = +0.12

Fast selling = -0.10

Slow movement = 0.01



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



9\. Entry Filter



Your Line Break strategy already detects entries.



Before executing the trade:



Add one check.



if (abs(MarketPressureScore) > PressureThreshold)

&nbsp;   AllowTrade()

else

&nbsp;   BlockTrade()





EXAMPLE THRESHOLD:



0.05



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



10\. Performance Cost



Very low.



Only calculations:



Ticks from last 12 seconds



3 numbers



1 division



It can run thousands of times per second.



\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



11\. Simple System Flow



Program becomes:



Tick arrives

↓

Update ticks from last 12 seconds

↓

Calculate MarketPressureScore

↓

LineBreak signal appears

↓

Check MarketPressureScore

↓

If strong → execute trade

If weak → ignore signal