Volume-Confirmed Swing Breakouts with Trend Filters and ATR Trailing Stops

Summary

This long-only swing system looks for a close above the prior 50-day closing high, paired with volume at least 1.5 times its 50-day average. It takes the signal only when price is above both the 50- and 200-day simple moving averages and the shorter average is above the longer one. A developing alert can identify price within 3% below the breakout level while the trend conditions hold. The settings are adjustable, and the script also specifies commission, slippage, and no pyramiding.

Entries are modeled as market orders filled at the next bar's open. Once in a trade, an ATR-based stop trails four times the 14-period ATR below the highest price reached and only moves upward. The description says gaps through the stop fill at the open, though it reports no measured results or validation. It is framed for daily or swing charts, but does not establish performance across markets; users must assess costs, sizing, and future risk for their own use.

Key ideas

• A breakout requires a close above the prior 50-day closing high and elevated volume relative to its 50-day average.
• The system filters entries for price and moving-average alignment above the 50- and 200-day averages.
• Orders are modeled to fill at the next bar's open.
• An upward-ratcheting stop trails the post-entry peak by four times the 14-period ATR.
• The document gives no backtest results, so profitability and cross-market robustness remain unestablished.

Tags

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