OPEN-SOURCE SCRIPT
Consolidation Breakout with Volume Confirmation [Daily]
What this does
This indicator detects consolidation zones on price charts and flags breakouts confirmed by volume — in both directions (bullish breakouts and bearish breakdowns).
Methodology
Timeframe
Designed and tested on the Daily timeframe. All settings (lookback, cooldown, volume baseline) are counted in bars, so they do not scale automatically across timeframes — a 5-bar cooldown means 5 trading days on Daily, but a very different real-world duration on 4H, Weekly, or other timeframes. If you use this on a different timeframe, re-tune the inputs rather than relying on the defaults.
Alerts
Built-in alert conditions for both bullish breakouts and bearish breakdowns — set once per chart to get notified without watching live.
Disclaimer
This is a screening/context tool, not a standalone buy/sell signal. All thresholds are adjustable in settings — test and tune them for the instruments you trade. Always confirm with your own analysis and risk management. Not financial advice.
This indicator detects consolidation zones on price charts and flags breakouts confirmed by volume — in both directions (bullish breakouts and bearish breakdowns).
Methodology
- Scans a flexible lookback window (10–30 bars, adjustable) for the tightest qualifying price range, so it captures both short flags and multi-week bases without needing separate settings for each.
- A zone is drawn once a window's high-low range falls under a configurable tightness threshold (default 8%).
- Zones where average volume during consolidation is below its own 50-bar baseline are marked in green ("volume dry-up") as a soft indicator of higher conviction — this is informational, not a hard filter.
- A breakout fires on a close beyond the zone boundary, confirmed by volume at least 1.5x (configurable) the zone's average — symmetric logic for both long breakouts and short breakdowns.
- A cooldown period after each breakout reduces false re-triggering during choppy conditions.
- Each breakout label also tags candle quality (strong/weak close within the bar's range) and whether the move gapped through the zone or ground through it intraday — additional price-action context alongside the volume read.
Timeframe
Designed and tested on the Daily timeframe. All settings (lookback, cooldown, volume baseline) are counted in bars, so they do not scale automatically across timeframes — a 5-bar cooldown means 5 trading days on Daily, but a very different real-world duration on 4H, Weekly, or other timeframes. If you use this on a different timeframe, re-tune the inputs rather than relying on the defaults.
Alerts
Built-in alert conditions for both bullish breakouts and bearish breakdowns — set once per chart to get notified without watching live.
Disclaimer
This is a screening/context tool, not a standalone buy/sell signal. All thresholds are adjustable in settings — test and tune them for the instruments you trade. Always confirm with your own analysis and risk management. Not financial advice.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.