How the PCCE + False Breakout Detector Performed in BTCChart: BTC/USDT (15m – BINANCE)
Tool Used: PCCE + False Breakout Detector
Type: Educational – How to interpret breakout and trap detection.
🟢 What the Indicator Does:
The PCCE + False Breakout Detector blends two core functions:
1. Price Coil Compression & Expansion (PCCE): Finds tight volatility compression zones and signals when price bursts out with strength (Burst↑ or Burst↓).
2. False Breakout Detection: Flags bull and bear traps when breakout moves fail to hold beyond recent swing levels.
This pairing gives a setup phase (compression), a confirmation phase (burst), and a risk filter (trap detection).
✅ Recent Performance Highlights:
📈 Early Session:
• Several Burst↑ and Burst↓ signals emerged during small compression ranges.
• A Burst↑ around 06:00 marked the start of a steady climb, confirming breakout alignment with volume/trend filters.
📉 Mid Session:
• A Burst↓ appeared, but price quickly reversed upward.
• The reversal was flagged as a bear trap (green ❌), warning traders of a failed breakdown.
📈 Late Session Rally:
• Around 15:00, a compression zone formed before a strong upward move.
• The breakout printed a Burst↑ and continued into a multi-hundred-dollar rally.
• Shortly after, a bull trap (red ❌) was flagged at the top — price stalled and pulled back within minutes.
🔍 Interpretation:
• Burst↑/↓ = Entry cues from high-probability volatility expansions.
• ❌ markers = Real-time warnings that a breakout may fail, helping avoid false momentum plays.
• Combined Effect : Captures early move potential while filtering risky breakouts.
⸻
📚 How to Apply in Trading:
1. Mark coil zones and prepare for potential expansion.
2. Confirm breakouts with Burst signals and, optionally, trend/volume filters.
3. Heed trap markers — they often precede reversals or consolidation.
4. Pair with higher-timeframe analysis for trend bias.
