Volume-Filtered Fair Value Gap Breakout Strategy

Summary

This TradingView strategy combines fair value gaps with a price-range breakout framework and a volume filter. It defines bullish and bearish gaps using relationships among the current bar and bars two periods earlier, then checks whether price is beyond a recent highest-high or lowest-low boundary. The visible settings use a 25-bar trend period, a 20-bar volume average, and a threshold requiring volume above 1.2 times that average. It also includes configurable stop-loss and take-profit percentages, a margin-rate input, and calculations for certain US stock-trading fees and daily margin cost.

The supplied excerpt shows detection, zone drawing, and fee-related setup, but ends before the full order-entry and exit logic is visible. It includes no backtest configuration, outcome statistics, or discussion of strategy risks, so effectiveness cannot be assessed from this material. The stated fee assumptions are specific to the named broker context and may not transfer to other instruments or venues. The document is useful as a sketch of a breakout system, but the available evidence is insufficient to reproduce or validate its full trading behavior.

Key ideas

• The strategy identifies bullish and bearish fair value gaps using price relationships across three bars.
• It qualifies gap setups by checking for a breakout beyond a recent high or low range.
• A volume filter compares current volume with a moving average and a configurable multiplier.
• The visible inputs include percentage exits and broker-specific fee and margin assumptions.
• The excerpt ends before full order logic and provides no backtest results or risk analysis.

Tags

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