Volume Breakout Signals

Script by Hanssome

The Volume Breakout Signals indicator is a trading tool designed to identify potential entry points by pinpointing high-momentum price breakouts on your main chart. It operates on a simple but powerful principle: a true breakout should be supported by a significant increase in trading volume.

The indicator plots two primary visual elements on your price chart:

Pivot Highs and Lows: These are marked with green and red circles and represent the most recent significant swing points in the price. They act as dynamic support and resistance levels, and the script watches for the price to break past them.

BUY and SELL Labels: These signals appear directly on the chart to indicate a potential trading opportunity.

A signal is only generated when two specific conditions are met simultaneously:

Price Breakout: A BUY signal requires the price to cross decisively above the most recent pivot high. A SELL signal requires the price to cross below the most recent pivot low.

Volume Confirmation: This price breakout must be accompanied by a recent spike in trading volume. This confirmation suggests strong momentum and conviction behind the move, increasing the probability of a successful breakout.

All the parameters, such as the sensitivity of the pivot points and the definition of a volume spike, can be adjusted in the indicator's settings to fit your specific trading style and the asset you are viewing.