# 3-Bar Volume Breakouts Indicator

#### J007RMC

##### Well-known member
2019 Donor
On a 5-minute 2-day candlestick chart, traders should look at the bottom of the chart to look for a pattern in which 3 sequential increasing-volume 5-minute bars occur. The basic trading strategy is to go long in an up trending chart with this 3-bar volume breakout with an entry placed ten cents (.10) above the high of the 3rd candle on a volume bar following this signal. https://www.equities.com/news/day-trading-3-bar-volume-breakouts

Code:
``````# First X Bars Cloud
# Paris
# 5.28.2019

# Plots a continuous rectangular cloud over the first X bars

declare hide_on_daily;

input n = 3;
def bar = BarNumber();
def today = GetDay() == GetLastDay();
def Fbar = if SecondsTillTime(0930) == 0 and
SecondsFromTime(0930) == 0
then bar
else Fbar[1];

def h = if today and between(bar, Fbar, Fbar + n)
then fold i = 0 to n
with s = Double.NaN
while IsNaN(s)
do Max(high, getValue(high, i, n))
else Double.NaN;

def l = if today and between(bar, Fbar, Fbar + n)
then fold i2 = 0 to n
with s2 = Double.NaN
while IsNaN(s2)
do Min(low, getValue(low, i2, n))
else Double.NaN;

plot RangeHigh = if today and between (bar, Fbar, Fbar + n)
then HighestAll(h)
else Double.NaN;
plot RangeLow = if today and between (bar, Fbar, Fbar + n)
then LowestAll(l)
else Double.NaN;

# END STUDY``````

Last edited by a moderator:
What is the significant of the rectangular cloud on the first 15 minutes of RTH using 5 minutes time ? The link mentions about 3 volume bar so how to relate this First X Bar study to the volume?

BungBang, my guess is that more trading volume is at the market open, as many traders, algos and bots are set to begin trading at 9:30. When that much increased volume happens, and as the first fifteen minutes elapses, a general direction is established for the next few minutes (sometimes) and by setting a buy order + or- (.10) above the high of the last third candle, (which closes at 9:45), you will either buy into volume as increasing PPS moves higher with the established momentum, or you don't open any trade as the price drops. This is a very good method to buy stocks moving up at the open.

Can u send us a snap shot of a chart to see how does it look like?
Thanks.

It says complex script can not load in study?

@Vimal Mittal I was able to add it to ToS without any issue.

87k+ Posts
175 Online

## The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
• Exclusive indicators
• Proven strategies & setups
• Private Discord community
• Exclusive members-only content
• 1 full year of unlimited support

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?