[codapro] PressureBox Breakout Engine Full Breakdown

[codapro] PressureBox Breakout Engine is a revamped and expanded version of a prior post. This release includes a more educational breakdown and deeper configuration guidance, in response to user requests for clarity on how the system works and how to use it effectively.

This tool is a compression-detection and breakout-anticipation engine that blends Donchian channel logic, ATR filtering, and a proprietary “pressure” oscillator derived from volume-weighted momentum. It visually highlights real-time “compression zones” with dynamic shaded boxes and flags potential breakouts using configurable BUY/SELL markers.

It’s designed to help traders identify and analyze different market setups — including potential trend continuations, volatility breakouts, and range fade conditions — by surfacing key compression and pressure states visually on the chart.

Key Features

*Dynamic Compression Boxes: drawn when Donchian range < smoothed ATR threshold

*Breakout Flags: BUY/SELL alerts when price breaks outside compression range

*Custom Volume Pressure Score: MFI + CMF hybrid from -1 to +1

*Candle Overlap Filter: optional % overlap indicator for noise detection

*Adaptive Box Shading: transparency adjusts to pressure strength

*Clean Re-Anchoring Logic: boxes reset only when compression ends

*Full User Control: configure inputs for box length, blend logic, signal rules


How It Works

Compression Box Logic

A box is drawn when the Donchian range (e.g. high - low over N bars) falls below a moving ATR threshold.
The box dynamically extends and adjusts height/width until a breakout or timeout occurs.
Users can toggle whether Donchian uses highs/lows or closes and whether the box shows a midline.

Breakout Signal Logic

BUY signal: Close breaks above box high, with optional compression condition on the prior bar.
SELL signal: Close breaks below box low.
Signals use ATR-based offsets for clean separation on the chart.

Pressure Score Logic

Pressure is a weighted blend between:

MFI (Money Flow Index) — momentum-based
CMF (Chaikin Money Flow) — flow-based
The result is a smoothed -1 to +1 score that represents volume pressure.

This is used both for:

Box transparency (strong pressure = darker shading)
Optional overlay plot

Overlap Mode

Calculates smoothed % of how much recent candles overlap.
Useful for filtering non-directional chop and low-quality breakouts.
Can be toggled on/off as a separate overlay line.

⚙️ Default Optimized Settings
Setting Value
Donchian Length 8
ATR Length 13
ATR Multiplier 3.1
ATR SMA Length 21
Max Extend Bars 55
MFI Length 25
CMF Length 55
Blend Weight (MFI:CMF) 0.5

These are optimized for detecting tight consolidations and explosive breakout potential, especially on intraday 5m–15m charts across futures, forex, and crypto.

How to Use It

Watch for the compression box to form — this marks a squeeze zone.
Breakouts with BUY/SELL flags are most reliable after long compressions.
Adjust the Blend Weight to prioritize MFI (momentum) or CMF (flow).
Use Overlap % to filter sideways markets or low-quality signals.
Combine with support/resistance, VPA tools, or trend filters for layered setups.

Disclaimer

This tool was created using the CodaPro Pine Script architecture engine — designed to produce robust trading overlays, educational visuals, and automation-ready alerts.

It is provided strictly for educational purposes and does not constitute financial advice. Always backtest and demo before applying to real capital.