The BPR with Directional Momentum-Filtered Breakouts indicator identifies breakout opportunities by filtering momentum shifts and trend strength. The script integrates Balance Price Range (BPR) with an EMA-based trend filter and a cooldown mechanism to refine signal accuracy.
Performance Analysis
📉 Bearish Signals Effectiveness
• The indicator effectively captured multiple shorting opportunities during the downtrend.
• Sell signals aligned with price staying below the EMA, confirming trend direction.
• Momentum-based filtering reduced false signals in sideways conditions.
📈 Bullish Signals Efficiency
• Buy signals appeared in early trend reversal phases, indicating potential bullish setups.
• Some bullish breakouts led to trend continuation, while others encountered resistance.
• A trendline breakout confirmation helped validate certain long entries.
📊 Trade Cooldown & Noise Reduction
• Cooldown mechanism prevented excessive signals in choppy price action.
• Volume-based breakouts helped distinguish strong breakouts from false moves.
Key Observations
✅ Works best in trending markets – Strong trend direction improves signal reliability.
✅ Momentum filtering enhances breakout accuracy – Reduces unnecessary entries.
⚠️ Certain bullish breakouts lacked strength – Additional confirmation may help.
Conclusion
The BPR with Directional Momentum-Filtered Breakouts indicator provides a structured approach to breakout trading by leveraging momentum shifts, EMA-based trend validation, and a cooldown filter to avoid false signals. The script performs effectively in clear trending conditions while reducing noise in ranging markets.
Performance Analysis
📉 Bearish Signals Effectiveness
• The indicator effectively captured multiple shorting opportunities during the downtrend.
• Sell signals aligned with price staying below the EMA, confirming trend direction.
• Momentum-based filtering reduced false signals in sideways conditions.
📈 Bullish Signals Efficiency
• Buy signals appeared in early trend reversal phases, indicating potential bullish setups.
• Some bullish breakouts led to trend continuation, while others encountered resistance.
• A trendline breakout confirmation helped validate certain long entries.
📊 Trade Cooldown & Noise Reduction
• Cooldown mechanism prevented excessive signals in choppy price action.
• Volume-based breakouts helped distinguish strong breakouts from false moves.
Key Observations
✅ Works best in trending markets – Strong trend direction improves signal reliability.
✅ Momentum filtering enhances breakout accuracy – Reduces unnecessary entries.
⚠️ Certain bullish breakouts lacked strength – Additional confirmation may help.
Conclusion
The BPR with Directional Momentum-Filtered Breakouts indicator provides a structured approach to breakout trading by leveraging momentum shifts, EMA-based trend validation, and a cooldown filter to avoid false signals. The script performs effectively in clear trending conditions while reducing noise in ranging markets.
Thanks.
TradeTech Analysis
Telegram Channel - t.me/Tradetech2024
Youtube Channel - youtube.com/@TradeTechAnalysis
Website - tradetechanalysis.com/
TradeTech Analysis
Telegram Channel - t.me/Tradetech2024
Youtube Channel - youtube.com/@TradeTechAnalysis
Website - tradetechanalysis.com/
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.
Thanks.
TradeTech Analysis
Telegram Channel - t.me/Tradetech2024
Youtube Channel - youtube.com/@TradeTechAnalysis
Website - tradetechanalysis.com/
TradeTech Analysis
Telegram Channel - t.me/Tradetech2024
Youtube Channel - youtube.com/@TradeTechAnalysis
Website - tradetechanalysis.com/
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.