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
#One Note Download

# 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;

AddCloud(RangeHigh, RangeLow, Color.White, Color.White);
# END STUDY
 
Last edited by a moderator:

Bung Bang

New member
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?
 

Adeodatus

Member
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.
 

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