Multi-Timeframe Breakouts from Failed and Inside Bars

Summary

This intraday strategy detects failed highs and lows, where a signal-timeframe candle moves beyond the previous candle’s range but closes back inside, as well as inside bars. A later chart-timeframe close beyond the signal candle’s high or low triggers a trade; whichever side breaks first cancels the other. The script requires the execution chart to be below the signal timeframe and uses completed signal bars.

Stops are placed at the opposite edge of the signal candle, with a configurable reward multiple as the target. Optional break-even or threshold-based close management, an end-of-day close, and inside-bar size adjustment govern trade handling. It also plots VWAP and session levels based on regular-hours highs and lows, selected hourly reversals, and daily ATR relevance. The source describes rules and chart displays, but supplies no performance evidence; results will depend on instrument, timeframe, settings, and execution assumptions.

Key ideas

• Failed highs and lows are defined by a range breach followed by a close back inside the prior candle.
• Inside bars can also create pending breakout signals.
• The first execution-timeframe close beyond either signal boundary determines direction and cancels the opposite setup.
• Stops use the other side of the signal candle, while targets scale the stop distance by a configurable reward multiple.
• Session levels, VWAP, and optional profit management supplement the entry and exit rules.

Tags

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