Volume Surge Entries with Trend Filters and ATR Trailing Stops

Summary

This script describes a long-only momentum approach that looks for unusually high volume alongside a strong bullish candle. Entry also requires price above a trend EMA, RSI below a maximum threshold, and no extreme-volume candle with a large upper wick, which the script treats as a possible blow-off. It sizes entries as a percentage of equity and includes commission and slippage assumptions.

Risk controls begin with a hard stop set using ATR. Once the trade reaches a specified gain, the script activates an ATR-based trailing stop; a blow-off signal can also close the position. The document provides settings and code, but no market, testing period, or performance report is included in the supplied text. Its thresholds, costs, and execution behavior therefore describe a proposed configuration rather than evidence of profitability, and the approach’s dependence on volume and candle patterns may vary across instruments and market conditions.

Key ideas

• A long entry requires a volume surge, a strong bullish close, price above an EMA, and RSI below a set ceiling.
• The script filters out extreme-volume candles with a sufficiently large upper wick.
• An ATR-based hard stop is used from entry, with a trailing stop activated after a minimum gain.
• The position size is specified as a fraction of equity, and the script includes commission and slippage assumptions.
• The supplied text reports no backtest results or tested market and period.

Tags

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