Directional Authority Framework (DAF) - Multi Timeframe Breakout

Directional Authority Framework (DAF) — Multi-Timeframe Breakout Acceptance Model
Overview
The Directional Authority Framework (DAF) is a multi-timeframe market state model designed to measure directional strength and alignment across higher, mid, and lower timeframes.

Rather than producing entry signals, the framework evaluates whether market conditions show sufficient agreement and persistence to justify directional trading.
Its primary purpose is to act as a decision-support and trade-permission tool.

Conceptual Foundation
Markets tend to trend more reliably when three conditions occur together:

Higher timeframe directional bias is established

Intermediate structure aligns with that bias

Lower timeframe participation confirms continuation

This script measures that alignment using a breakout-acceptance approach, where directional state is only confirmed after price demonstrates persistence beyond recent range extremes.

This helps reduce reactions to temporary volatility spikes or single-bar breakouts.

Breakout Acceptance Logic
Directional state is determined by observing whether price continues to close beyond prior range boundaries for a defined number of bars (“acceptance”).

This approach is intended to:

Filter false breakouts

Emphasize persistence instead of single-bar expansion

Capture phases where participation remains consistent

The model therefore focuses on trend continuation probability rather than early reversal detection.

Multi-Timeframe Authority Structure
The framework evaluates three layers:

Higher Timeframe (Primary Bias)
Establishes the dominant directional environment.

Mid Timeframe (Alignment Layer)
Checks whether structure across multiple range horizons agrees with the primary bias.

Lower Timeframe (Execution Context)
Measures short-term participation strength.

Directional authority is then expressed as a weighted score representing the degree of agreement between these layers.

Directional Authority Score
The score reflects the balance between:

Higher timeframe bias

Mid timeframe alignment

Lower timeframe participation

Stronger agreement across timeframes produces higher absolute values, indicating conditions where directional strategies may have improved follow-through.

Neutral readings typically occur during compression or transitional phases.

How It Is Intended To Be Used
This framework is designed to:

Act as a trade permission filter

Provide directional bias context

Help avoid trading during low-alignment conditions

Typical workflow:

Identify whether the authority score reaches strong bullish or bearish territory

Use that information as directional context

Execute entries using an independent setup or strategy

It is not designed to generate standalone entry or exit signals.

When It Performs Best
The model is most informative during:

Expanding volatility phases

Sustained directional moves

Markets showing multi-timeframe agreement

During highly rotational or range-bound conditions, readings will naturally compress toward neutral.

Notes
This script is intended for educational and analytical use as a market structure and alignment tool.
It does not predict future price movement and should be used alongside proper risk management.