Volume-Confirmed Breakouts with OBV Filtering and Warning Exits
Summary
This long-only breakout system looks for a close above the recent high after a defined consolidation range, alongside volume above its 20-bar average. An optional OBV filter requires OBV to exceed its own moving average. A separate large-candle condition can bypass the consolidation and OBV checks. The system first flags a setup, then waits for price to exceed the recorded breakout high before issuing a confirmed entry. It also plots pivot-based support and resistance levels.
Exit warnings can be triggered by a close crossing below the 9-period EMA, a high-volume down candle, or a bearish engulfing pattern. The script closes the strategy position on these signals, but provides no fixed protective stop or target. Its description cites 201 daily-chart trades on one instrument, yet provides no return, drawdown, or out-of-sample evidence in the supplied text. The daily chart also uses specially widened consolidation settings, so its behavior differs from other timeframes.
Key ideas
- A breakout setup requires a close above the prior range high and a volume spike versus its moving average.
- OBV above its moving average is an optional filter for normal breakout setups.
- A large upward candle can trigger a setup without the usual consolidation and OBV conditions.
- Entry confirmation and several warning-based exit rules are distinct stages of the system.
- The cited trade count alone does not establish profitability or robustness.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.