Volume Breaker

  1. What is the Volume Breaker Indicator?

Volume Breaker Indicator is designed for traders using breakout strategies and volume-based trading. It works for scalping, day trading, and swing trading. It aims to identify high-probability breakout opportunities before they happen by analyzing volume and using a complex algorithm involved with price action, typical price, moving averages, RSI…,. Additionally, it avoids false breakouts by effectively combining volume confirmation and price action. 


Volume Breaker Indicator does all that by calculating the difference between positive volume (up days) and negative volume (down days) relative to total volume over a set period. Then it will use the Average True Range (ATR) to determine significance:

* A buy signal is generated when:

* Volume Breaker indicator crosses above a critical threshold (+10 by default).

* RSI is below an overbought level (+90 by default).

* Price is above its SMA.

* A sell signal is generated when:

* Volume Breaker indicator crosses below its SMA.

* Price falls below a recent high minus a multiple of ATR.


Key features of Volume Breaker Indicator: This indicator

* Identifies breakout entries and exits.

* Works on multiple timeframes and trading pairs.

* Provides stop-loss and take-profit levels.

* Offers alerts via pop-up, push notification, or email.

* Works with Forex, Crypto, and Futures markets.



  1. Indicator settings:

Please note that there are 2 parts to this product: Volume Breaker Pro and Volume Breaker Panel. Please add them both from your Invite-only scripts.


VP Period: the number of candles to be included in the calculation of the volume indicator

Smooth: the smoothing period for the indicator, default is 3 days

VPNCRIT: the critical value for Volume Breaker calculation, default is 10

MA BARS: the number of candles to be included in the calculation of the MA, default is 30

Multiplier: the multiplier for ATR to be used in the calculation of the indicator, default is 0.1

RSI Period: the number of candles to be included in the RSI calculation, default is 14

RSI applied price: the price to be used in RSI calculation (open, high, low, close, hl2, hlc3, ohlc4, hlcc4, MAVPN, or VPN)

RSI Overbought level: the critical threshold for RSI to show an overbought market, default is 90

Price MA Period: the number of candles to be used in the MA calculation, default is 14

Price MA Method: the calculation method for MA (simple, exponential, smoothed, or linear weighted)

Price MA applied price: the price to be used in MA calculation (open, high, low, close, hl2, hlc3, ohlc4, hlcc4, MAVPN, or VPN)

Candles count to get recent highest close for bearish signal: the number of recent candles used in the algorithm to conclude a sell signal, default is 7

ATR period for bearish signal: the number of recent candles to be used in the calculation of ATR for the sell signal algorithm, default is 14

ATR coefficient for bearish signal: the coefficient used in the calculation of ATR for the sell signal algorithm, default is 1

ATR period for SL shift: the timeframe used to calculate the Average True Range for adjusting stop loss levels.

SL shift coefficient: a multiplier used with the ATR value to adjust stop loss levels according to market volatility.

TP coefficient (from SL): a multiplier determining the Take Profit level relative to the Stop Loss distance.

Various color settings: customize the colors and display of texts, dashboards & arrows to your visual preference.


For Volume Breaker Panel: similar definitions to those in the settings of Volume Breaker Pro Panel


  1. Alert set-up:

To stay updated on potential trading opportunities, you can set up alerts within the Volume Breaker Pro settings. Below are the settings screenshots for the Volume Breaker Pro component. Please note that the Volume Breaker Panel component does not have a signal alert function.

Step 1: From the indicator settings, customize your alerts by defining your desired parameters for buy and sell signals. The selected configurations will be used for notifications in Step 2.


Step 2: To receive notifications through the app, pop-ups, alert emails, Webhook URL, sound alerts, or email-to-SMS, enable these features by clicking on TradingView's Alert icon.


Step 3: Select “Volume Breaker Pro” and “Any alert() function call” from the “Condition” dropdown list.


Step 4: A pop-up will appear as follows. Click on “Notifications”.

Step 5: Choose the types of notifications you'd like to receive, and click the “Create” button.

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