BPR with Directional Momentum-Filtered Breakouts โ PerformanceThe BPR with Directional Momentum-Filtered Breakouts indicator identifies breakout opportunities by filtering momentum shifts and trend strength. The script integrates Balance Price Range (BPR) with an EMA-based trend filter and a cooldown mechanism to refine signal accuracy.
Performance Analysis
๐ Bearish Signals Effectiveness
โข The indicator effectively captured multiple shorting opportunities during the downtrend.
โข Sell signals aligned with price staying below the EMA, confirming trend direction.
โข Momentum-based filtering reduced false signals in sideways conditions.
๐ Bullish Signals Efficiency
โข Buy signals appeared in early trend reversal phases, indicating potential bullish setups.
โข Some bullish breakouts led to trend continuation, while others encountered resistance.
โข A trendline breakout confirmation helped validate certain long entries.
๐ Trade Cooldown & Noise Reduction
โข Cooldown mechanism prevented excessive signals in choppy price action.
โข Volume-based breakouts helped distinguish strong breakouts from false moves.
Key Observations
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Works best in trending markets โ Strong trend direction improves signal reliability.
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Momentum filtering enhances breakout accuracy โ Reduces unnecessary entries.
โ ๏ธ Certain bullish breakouts lacked strength โ Additional confirmation may help.
Conclusion
The BPR with Directional Momentum-Filtered Breakouts indicator provides a structured approach to breakout trading by leveraging momentum shifts, EMA-based trend validation, and a cooldown filter to avoid false signals. The script performs effectively in clear trending conditions while reducing noise in ranging markets.