Breakout from a sideway market

Mansoor · Thu, 18 Jan 2018 21:36:10 +0000

Fellow prorealtimers, What formula do you use to capture a breakout from sideway? (When price accelerates in one direction). Here is an example scenario on 1min timeframe: Price has been ranging between 100 and 105 for the last 10 minutes. At minute 11 it goes to 106, at minute 12 it goes to 107 at minute 13 it goes to 109…

This topic has 5 replies, 4 voices, and was last updated 6 years ago by Wing.

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01/18/2018 at 10:36 PM #59845

Mansoor

Fellow prorealtimers,

What formula do you use to capture a breakout from sideway? (When price accelerates in one direction). Here is an example scenario on 1min timeframe:

Price has been ranging between 100 and 105 for the last 10 minutes. At minute 11 it goes to 106, at minute 12 it goes to 107 at minute 13 it goes to 109…

Mansoor
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01/18/2018 at 11:09 PM #59848

Mansoor

There are many ways to do this. I was thinking something like:

if close – close[3] > atr[10]

or comparing short time ema with long time ema.

Wondering what other people use

Mansoor
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01/18/2018 at 11:38 PM #59849

robertogozzi

You may use Bollinger Bands and wait for their widening.

robertogozzi
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01/19/2018 at 2:49 AM #59854

Mansoor

Thanks Robert. I will create an indicator with all these methods and share it here.

I think formula based on atr would create better result. Let’s see

Mansoor
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01/19/2018 at 2:54 AM #59855

Nobody

Donchian channel and W%R 2 other existing indicators that may be of use for the intended purpose here . W%R in particular is a very overlooked indicator and measure new highs and or lows over ‘x’ period very well . Its a versatile filter imo with many measurement abilities that are overlooked at first glance ..

Nobody
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01/19/2018 at 2:57 AM #59856

Wing

If you want breakouts from sort-of horizontal trend channels this might be of interest as an indicator: https://www.prorealcode.com/prorealtime-indicators/wings-trend-lines/

Wing
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