Intraday Breakouts from the First Contrasting Candle Pair

Summary

This intraday strategy finds the first adjacent pair of candles with opposite directions, then defines a range from their combined high and low. It buys when a later close crosses above the range and sells short when a close crosses below it. On one-minute charts it skips the opening 9:15 candle and avoids using a pair that includes that candle.

A configurable filter can reject a pair whose range exceeds a chosen maximum. Stops are placed at the opposite edge of the pair, while targets use a configurable risk-to-reward multiple; the default is 1:2. The script limits entries to three per day and closes open positions at a configured time, defaulting to 15:20. The description identifies Indian index products and stocks as intended examples and says the chart timezone should match the Indian market session. It gives no backtest evidence for profitability or the claimed suitability of particular markets and timeframes; costs, fills, and parameter sensitivity remain unaddressed.

Key ideas

• The setup uses the first adjacent candles with opposite directions to define a high-low breakout range.
• A close above the pair's high triggers a long entry, while a close below its low triggers a short entry.
• Stops sit at the far edge of the setup range, and targets are based on a configurable reward-to-risk multiple.
• An optional maximum-range filter, daily trade limit, and time-based close constrain trading.
• The document describes intended intraday use but supplies no performance evidence.

Tags

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