OPEN-SOURCE SCRIPT
Micha Stokes Buyers Breakout Alert v2
Buyer Breakout Rules (Word Definition)
The alert is triggered when ALL conditions in Section 1 and Section 3 are met, AND one of the two Scenarios in Section 2 is met.
1. The Setup and Breakout (The Initial Requirement)
Price Action: The closing price of the current candle must break above the highest resistance level established during the recent period of flat trading (the setup).
2. The Confirmation (Scenario A OR Scenario B)
The breakout must be accompanied by evidence of buying strength:
Scenario A: High-Conviction Breakout (Immediate Demand)
The current candle is GREEN (it closed higher than it opened).
AND the volume is HIGHER than the volume of the previous candle.
Scenario B: Seller-Exhaustion Breakout (Micha Stokes' Unique Signal)
The current candle is GREEN (it closed higher than it opened).
AND the volume is LOWER than the volume of the previous candle. (This means the price rose without much seller resistance.)
3. The Strength Filter (Conviction Check)
The candle must close near its high, showing that buyers maintained control and didn't face significant selling pressure immediately after the breakout.
The alert is triggered when ALL conditions in Section 1 and Section 3 are met, AND one of the two Scenarios in Section 2 is met.
1. The Setup and Breakout (The Initial Requirement)
Price Action: The closing price of the current candle must break above the highest resistance level established during the recent period of flat trading (the setup).
2. The Confirmation (Scenario A OR Scenario B)
The breakout must be accompanied by evidence of buying strength:
Scenario A: High-Conviction Breakout (Immediate Demand)
The current candle is GREEN (it closed higher than it opened).
AND the volume is HIGHER than the volume of the previous candle.
Scenario B: Seller-Exhaustion Breakout (Micha Stokes' Unique Signal)
The current candle is GREEN (it closed higher than it opened).
AND the volume is LOWER than the volume of the previous candle. (This means the price rose without much seller resistance.)
3. The Strength Filter (Conviction Check)
The candle must close near its high, showing that buyers maintained control and didn't face significant selling pressure immediately after the breakout.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.