Breakout Swing
Breakout Swing enters a long trade when price closes above recent resistance with confirming momentum and volume, and exits when price closes below recent support with the opposite confirma…
Breakout Swing enters a long trade when price closes above recent resistance with confirming momentum and volume, and exits when price closes below recent support with the opposite confirmation. It is a swing strategy: it holds positions across multiple candles waiting for a decisive move rather than scalping every tick.
How it trades
| Ingredient | Meaning |
|---|---|
| Resistance | Highest high over the last N candles |
| Support | Lowest low over the last N candles |
| MACD | Momentum confirmation (histogram/difference of fast vs. slow EMA) |
| VWAP | Volume-weighted average price, used as a "buyers/sellers in control" filter |
Buy (breakout):
close > resistance AND macd > 0 AND close > vwap
Sell (breakdown, only when already in a position):
close < support AND macd < 0 AND close < vwap
Requiring all three conditions (level break + momentum + VWAP) is meant to filter out false breakouts in a quiet, ranging market.
When it works best
Works best in fast-moving or news-driven markets where a quiet range gets punctured by a strong move. In a choppy, low-volume market, expect frequent false breakouts even with the MACD/VWAP filters — the confirmation reduces but does not eliminate whipsaws.
Backtest this strategy yourself
Build these rules on the Free plan, adjust them, and see how they would have traded.