Fractal Breakouts with Volume Confirmation and ATR-Based Risk Controls

Summary

The available portion of this strategy script defines fractal support and resistance using a five-bar shape: the center bar’s high or low is compared with neighboring bars, and its volume must exceed a six-bar average. The latest qualifying high and low are carried forward as resistance and support levels. The script also sets up a trailing stop based on the low minus a multiple of ATR, with a rising stop for an open long position, and exposes inputs for staged profit targets expressed as multiples of initial risk.

The source is cut off during an ATR comparison section, before the complete entry and exit logic can be read. It begins to define fast and slow ATR measures for an entry test, but the available text does not establish how that test affects trades or confirm the full breakout rules. Thus, the excerpt explains components and configurable risk controls, but provides no strategy results or evidence about their effectiveness.

Key ideas

• Fractal support and resistance levels are based on a center bar that exceeds neighboring highs or lows.
• A fractal is accepted only when its center bar volume is above a six-bar average.
• The script defines a trailing stop using ATR and the current low, with the stop rising during a long position.
• Profit-taking inputs express three target levels as multiples of initial risk.
• The excerpt ends before the ATR entry test and complete trade logic are shown.

Tags

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