This breakout method uses historical volatility to set dynamic thresholds. When price moves beyond a reference level by more than the current volatility, it indicates a potential trend.
The strategy compares price to levels derived from standard deviation and a simple moving average. Breakouts above or below those levels trigger trades.
Exits occur when price crosses back through the moving average or the stop hits.
- Entry Criteria: Price breaks above or below HV-based level.
- Long/Short: Both directions.
- Exit Criteria: Price crosses MA or stop.
- Stops: Yes.
- Default Values:
- HvPeriod = 20
- MAPeriod = 20
- StopLossPercent = 2.0m
- CandleType = TimeSpan.FromMinutes(5)
- Filters:
- Category: Breakout
- Direction: Both
- Indicators: HV, MA
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Intraday
- Seasonality: No
- Neural Networks: No
- Divergence: No
- Risk Level: Medium