Two-Candle Range Breakout with Risk-Reward and Timed Exits
Summary
This intraday breakout system searches for the first adjacent pair of candles with opposite directions, then defines the pair’s combined high and low as a trading range. A close crossing above the range high triggers a long, while a cross below the low triggers a short. On one-minute charts, the opening 9:15 candle and pairs involving it are excluded. An optional filter rejects ranges larger than a configured point width.
The stop is placed at the opposite edge of the range, and the target extends beyond the breakout edge by a configurable risk-reward multiple. The script limits daily entries and can close any open position at a specified time. It includes chart lines, alert messages, and trade logic, but provides no backtest settings or performance evidence. Results may depend heavily on the instrument, session timing, chart interval, transaction costs, and the chosen range and target settings.
Key ideas
- The setup uses the high and low of the first qualifying pair of opposite-color candles.
- A break above the pair triggers a long, and a break below it triggers a short.
- Stops sit at the far edge of the range, with targets set using a risk-reward multiple.
- An optional maximum-range filter and a daily trade cap constrain entries.
- A configurable intraday time exit closes positions, but no performance results are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.