Swing-Level Breakouts Confirmed by Lower-Timeframe Volume Delta
Summary
This indicator tracks recent swing highs and lows, using configurable left and right lengths and a selectable timeframe to establish price levels. A level is marked broken when price crosses it by either a candle close or wick. The script can estimate bullish and bearish volume on the breakout candle by summing lower-timeframe volume for sub-bars that close above or below their opens. An optional filter requires the corresponding side to exceed a chosen share of that estimated volume.
The display distinguishes unbroken and broken levels, shows a limited number of recent levels, and labels breakout candles with the bullish and bearish volume estimates and proportions. These readings classify sub-bar volume by candle direction; the document does not establish that they represent exchange-reported buyer-initiated or seller-initiated trades. It presents a charting indicator, with no entry-and-exit system, backtest, or evidence that filtered breakouts predict returns.
Key ideas
- Swing highs and lows create price levels that can be monitored for breakouts.
- Breaks can be detected from candle wicks or closing prices.
- Lower-timeframe sub-bars are classified by whether they close above or below their open to estimate directional volume.
- An optional dominance threshold filters breakouts according to the estimated bullish or bearish volume share.
- The indicator visualizes levels and volume estimates but provides no backtest or complete trading strategy.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.