Consolidation Breakouts Filtered by Volume, OBV, and Price Structure

Summary

This script outlines a breakout approach that compares price with the previous lookback period’s high and low. It defines consolidation through the width of that earlier range relative to price, then identifies an upward breakout when the close exceeds the prior range high alongside elevated volume. Inputs set the consolidation lookback, allowable range, and volume-spike multiplier. An optional OBV filter compares current on-balance volume with its moving average.

The script also declares fast and slow averages, pivot-based support and resistance points, and optional fast, volume-dump, and bearish-pattern exit settings. It includes a special signal path for large moves and changes the lookback and range thresholds on daily charts. However, the supplied source cuts off during the trigger logic, before complete entries, exits, or the role of the declared support and resistance levels can be established. It reports no backtest outcomes. Its settings and conditional daily behavior should therefore be treated as implementation details to investigate, not evidence of profitability.

Key ideas

• The strategy looks for a close above a recent range high after a consolidation period.
• A volume threshold and optional OBV comparison are intended to filter breakout signals.
• Fast and slow moving averages, pivot levels, and several exit conditions are declared in the script.
• Daily charts use different consolidation settings from other timeframes.
• The source is truncated before the complete signal and trade-management logic, and no performance results are shown.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.