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