BPR with Directional Momentum-Filtered Breakouts – Performance

The 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

📉 Bearish Signals Effectiveness
• The indicator effectively captured multiple shorting opportunities during the downtrend.
• Sell signals aligned with price staying below the EMA, confirming trend direction.
• Momentum-based filtering reduced false signals in sideways conditions.

📈 Bullish Signals Efficiency
• Buy signals appeared in early trend reversal phases, indicating potential bullish setups.
• Some bullish breakouts led to trend continuation, while others encountered resistance.
• A trendline breakout confirmation helped validate certain long entries.

📊 Trade Cooldown & Noise Reduction
• Cooldown mechanism prevented excessive signals in choppy price action.
• Volume-based breakouts helped distinguish strong breakouts from false moves.

Key Observations

✅ Works best in trending markets – Strong trend direction improves signal reliability.
✅ Momentum filtering enhances breakout accuracy – Reduces unnecessary entries.
⚠️ Certain bullish breakouts lacked strength – 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.