Volume-Confirmed Breakouts with RSI and Trend Filters
Summary
This strategy looks for upside breakouts above the preceding 20-bar high when volume exceeds its 20-bar average by a configurable multiplier. Long entries also require the fast EMA to be above the slow EMA, rising RSI over a lookback, and RSI above a confirmation threshold. An optional short setup fades an upside breakout when the trend filter is not bullish and RSI signals weakness.
Position size is calculated from a percentage of current equity divided by an ATR-based initial stop distance. Exits combine that initial stop with an ATR trailing stop. The document supplies Pine Script settings and logic, but no reported performance results or market-by-market evaluation. Its parameters, execution assumptions, and code therefore describe a testable design rather than evidence of profitability; implementation details and behavior should be validated in backtests before practical use.
Key ideas
- Long entries require a prior-high breakout accompanied by expanded volume and bullish EMA and RSI conditions.
- An optional short entry fades an upside breakout under a non-bullish trend filter when RSI momentum weakens.
- Trade quantity scales with equity risk and the ATR-based initial stop distance.
- Initial and trailing exits both use ATR multiples.
- The document gives strategy logic and settings but no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.