Range Breakout
Swing

Trade breakouts from multi-day consolidation ranges. Identify compression, wait for a strong directional candle to break the range with volume.

SwingDaily, Weekly2.5:1 R:RModerate
Daily, Weekly
Timeframe
2.8:1
Target R:R
Moderate
Approach
Deploy This Strategy See Rules

Rules & Configuration

The full rule set, required indicators, suggested configuration, execution flow, and performance parameters for the Range Breakout Swing setup.

Trade breakouts from multi-day consolidation ranges. Identify compression, wait for a strong directional candle to break the range with volume.

Indicators Used
Bollinger Bands (20, 2)VolumeADX (14)ATR (14)
Rules
📈 Breakout Entry
  • Identify 5-10 day consolidation range
  • Bollinger Bands must be squeezing (narrowing)
  • Enter on daily close above range high
  • Volume must exceed 2× 20-day average
  • ADX rising above 20 from below
🛡️ Risk Management
  • Stop Loss: Below the range midpoint
  • Take Profit: Range height projected from breakout
  • Trail stop using ATR × 2 after 1:1 R:R reached
Daily, Weekly
Timeframe
2.8:1
Target R:R
Moderate
Approach
💡 Pro Tip

Bollinger Band squeezes that last 8+ days produce the most explosive breakouts. Look for the bandwidth indicator at its lowest reading in 6 months.

Common questions

What is the Range Breakout Swing strategy?

Trade breakouts from multi-day consolidation ranges. Identify compression, wait for a strong directional candle to break the range with volume.

What's the pro tip for trading Range Breakout Swing?

Bollinger Band squeezes that last 8+ days produce the most explosive breakouts. Look for the bandwidth indicator at its lowest reading in 6 months.

What indicators does the Range Breakout Swing strategy use?

The Range Breakout Swing strategy uses the following indicators: Bollinger Bands (20, 2), Volume, ADX (14), ATR (14). These can be configured directly in AlgoBars AlgoBuilder.

What timeframe works best for Range Breakout Swing?

The Range Breakout Swing strategy is best traded on the Daily–Weekly timeframe. This can be adjusted based on your trading style and market conditions.

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