Scored Squeeze Breakouts with Volume, Gap, and Momentum Filters

Summary

This long-only strategy scores potential volatility breakouts using volume relative to its average, the daily price change, alignment between short and medium EMAs, price above the short EMA, Bollinger Band width, and five-bar momentum. A trade can open when price is above the short EMA, RSI is below its configured ceiling, and the weighted score meets a minimum threshold. The script also highlights elevated volume and displays the score and selected measures on a chart dashboard.

Open positions use a percentage-based trailing exit and can be closed when price falls below the short EMA while five-bar momentum is sufficiently negative. The script specifies position sizing as a share of equity, commission assumptions, and default indicator settings, but the accompanying text provides no backtest results. The name and description frame it for high-beta equities, yet there is no evidence here that the thresholds generalize across securities or market regimes. Score weights and cutoffs are configurable, and volatility compression or high volume alone cannot establish that a breakout will follow.

Key ideas

• A weighted score combines volume, price gaps, EMA alignment, Bollinger Band width, and recent momentum.
• A long entry also requires price above the short EMA and RSI below a configurable maximum.
• Open positions exit through a trailing order or a momentum-based fade condition.
• The script includes chart annotations and a dashboard for monitoring its inputs and score.
• No performance results are supplied, so the breakout rules remain unvalidated in the document.

Tags

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