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:

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 criteria

Release 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.

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