Range Breaker [MOT]

3 日前

Range Breaker [MOT] - Volatility Compression System

Range Breaker is a technical analysis tool designed to identify periods of market consolidation (volatility compression) and generate signals when the market transitions into an expansion phase (breakout). Unlike static box tools that require manual drawing, this script uses an adaptive, volatility-based algorithm to automatically detect, draw, and monitor trading ranges in real-time. It adapts to changing market conditions by comparing recent price action against the asset's Average True Range (ATR).

METHODOLOGY & CORE CONCEPTS

1. Volatility Compression Detection
The script's primary engine is a "Tightness Filter." It continuously measures the distance between the highest high and lowest low over a lookback period.

• The Logic: It compares this raw range size against the ATR multiplied by a specific threshold. If the current range is significantly smaller than the historical average volatility, the script identifies this as a "Consolidation" event and begins constructing a box.
  
  
• Adaptive Thresholds: This method ensures the indicator works across all assets (Crypto, Forex, Stocks) because the definition of "tight" is relative to the asset's own volatility, not a fixed price distance.
  

2. Dynamic Range Expansion
Originality lies in how the script manages an active range. A consolidation phase is not static; it breathes.

• The Mechanism: If price pushes the boundary of the box but remains within the consolidation logic (does not close outside with momentum), the box dynamically expands to include the new data. This prevents premature signals and accurately captures the full "churn" of the accumulation/distribution phase.
  

3. Signal Generation Models
The script offers two distinct ways to trade the detected ranges:

• Momentum Breakouts: A signal is triggered when a candle closes decisively outside the box boundaries (plus a buffer).
  
  
• Wick Reversals (Mean Reversion): The script identifies "False Breakouts" where price probes outside the range but fails to close there (leaving a long wick). If confirmed by the subsequent candle, this signals a potential reversal back to the midline.
  

A chart showing a highlighted consolidation box with a "Vol Break" signal triggering on the breakout.
Visualizing volatility compression followed by a confirmed momentum breakout.

A chart showing a "Wick Reversal" signal where price poked out of the box but failed to close, indicating a trap/reversal back into the range.
False Breakout Detection: The script identifies liquidity traps at the range edges.

FEATURES & SETTINGS

Preset Profiles
To make the tool instantly usable for different styles, we have included tuned preset profiles that adjust the ATR multipliers and lookback periods automatically:

• Tight Ranges: For scalping on lower timeframes.
  
  
• Normal Ranges: Balanced settings suitable for most intraday and short-term swing trading strategies (Default).
  
  
• Swing Trading: Looser parameters for capturing multi-day consolidations.
  
  
• Options Selling: Optimized to find long, sideways chop ideal for theta strategies.
  

The settings menu showing the "Preset" dropdown selected.
Built-in profiles allow for quick adaptation to different market environments.

Volume Confirmation

• The Volume Filter: Users can enable a "Volume Spike" requirement. This checks if the breakout candle's volume is significantly higher than the average volume (e.g., > 1.7x), helping to filter out "fakeouts" that lack institutional participation.
  

Visual Customization

• Full control over Box colors, borders, and midlines.
  
  
• Toggle signals for "Wick Reversals" and standard "Breakouts" independently.
  

HOW TO USE & BEST PRACTICES

• The Squeeze: Use this tool to identify "the calm before the storm." Long periods of consolidation (large boxes) often lead to more explosive moves.
  
  
• Breakout & Retest Strategy: While the script signals the initial breakout, conservative traders often wait for price to pull back and "retest" the range extreme (Box Top/Bottom) or the Midline as support/resistance. Entering on this confirmation often provides a better risk-to-reward ratio.
  
  
• Risk Management: Stop losses can be strategically placed based on your style. Aggressive traders might place stops below the entry candle, while conservative traders often place them below the opposite side of the range box to allow for volatility.
  
  
• Filtering Fakeouts: We highly recommend enabling the "Confirm with Volume Spike" option in the settings. Breakouts accompanied by low volume often fail and return to the range.
  
  
• Reversals: In choppy sideways markets, use the "Wick Reversal" signals to trade from the edges back toward the midline (Mean Reversion).
  

ALERTS

The script includes the following alert conditions:

• Range Detected: Triggered when a new consolidation phase begins.
  
  
• Range Breakout: Triggered when price closes outside the box.
  
  
• Breakout with Volume Confirmation: Triggered only when a breakout is accompanied by a significant volume spike, allowing for filtered automated entries.
  
  
• Range Reversal: Triggered on confirmed Wick Reversal setups.

⚠️ DISCLAIMER

This script is for educational and analytical purposes only. It does not constitute financial advice. Trading involves significant risk. Past performance of the logic described is not indicative of future results.

3 日前

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