OPEN-SOURCE SCRIPT
Volume Bar Breakout and Breakdown Indicator
Updated
Volume shows strength of a movement and highest volume shows the region that pushed price to certain extent with full strength. Breakout or Breakout of the highest volume bar range shows continuity further push by sellers or buyers indicating a trend continuation for a small period if not for long duration. Entries can be taken once signal is generated with stoploss as recommended.
Guidelines:
Guidelines:
- Don't trade if range is too large
- Don't trade if Breakdown or Breakdown candle body / range is too large or if there is high volatility
- Use additional indicator to get the idea of overall trend analysis
Release Notes
Additional guidelines- Avoid taking trade in case of large range. Wait for the smaller range to increase Risk : Reward ratio
- In case of big range, wait for the retesting of breakout/breakdown
Release Notes
Added bar state confirmation to ensure that signal comes after the bar is close.Release Notes
Refined criteria on relative volume checks. Release Notes
Added healthy bearish/bullish bar criteriaRelease Notes
Lookup value change minimum to 5 min
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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