Fakeout Filter

📈 Fakeout Filter by ARV
🔍 Overview:
The Fakeout Filter is a smart breakout validation tool designed to help traders avoid false breakouts and focus only on high-probability breakout trades. This indicator combines price action, volume analysis, RSI divergence detection, and OBV trend confirmation to filter out noise and improve your entries.

⚙️ Key Features:
✅ Breakout Detection

Detects when the price closes above a user-defined resistance level.

✅ Volume Spike Confirmation

Confirms breakouts only if there’s a significant increase in volume (customizable via settings).

✅ RSI Bearish Divergence Filter

Warns you of bearish RSI divergence, which often signals fakeouts during breakouts.

✅ OBV Trend Confirmation

Ensures On-Balance Volume (OBV) is rising, aligning volume flow with price movement.

✅ EMA Filter (Trend Confirmation)

Adds a safety filter using Exponential Moving Average (EMA) to ensure price action aligns with the short-term trend.

📌 How to Use:
Set Resistance Level:

In the indicator settings, input a key resistance level (manual input based on your chart analysis).

Watch for Signals:

A green background and “Breakout” label appear when:

Price closes above the resistance.

Volume is significantly higher than average.

OBV is rising.

No bearish RSI divergence is detected.

Price is above the EMA (trend confirmation).

Entry Suggestion:

Consider entering long positions only when the breakout label appears.

For additional confirmation, wait for a retest of the resistance as support before entering.

🔧 Settings:
Resistance Level – Manually set the level you're watching.

Volume Multiplier – Adjusts sensitivity to volume spikes (default: 1.5x average).

RSI Period – RSI used for divergence detection (default: 14).

EMA Period – For trend direction confirmation (default: 21).

✅ Best Use Cases:
Scalpers and intraday traders avoiding fakeouts on 5m–1H timeframes.

Swing traders validating breakout setups.

BTC, ETH, and major altcoins in consolidation or breakout zones.

⚠️ Disclaimer:
This tool is for educational purposes only. Always combine it with your own market analysis and risk management.