High Accuracy Volume Breakout Strategy

High Accuracy Volume Breakout Strategy (EMA + RSI Filter)

🧠 Description:
This is a high-accuracy breakout strategy based on volume surges, trend confirmation, and momentum filtering, designed for intraday and short-term trading.

The strategy aims to capture strong directional moves triggered by sudden increases in volume, with entry filters to avoid low-quality or choppy signals.

✅ Entry Logic:
🔺 Buy Entry Conditions:
Current candle closes above previous high

Volume is greater than 1.5× the 20-period average

Price is above 50 EMA (uptrend confirmation)

RSI is below 70 (not overbought)

🔻 Sell Entry Conditions:
Current candle closes below previous low

Volume is greater than 1.5× the 20-period average

Price is below 50 EMA (downtrend confirmation)

RSI is above 30 (not oversold)

🎯 Exit Logic:
Stop Loss: 1.2 × ATR(14)

Take Profit: 2.0 × ATR(14)

🧪 Recommended Settings:
Parameter Value
Timeframe 5-minute, 15-minute
Markets Gold (XAUUSD), Nifty, BankNifty, BTC, NASDAQ
Risk/Reward ~1:1.6
Expected Accuracy ~65–75% in trending markets

📊 Features:
🔸 ATR-based dynamic stoploss and target

🔸 Volume spike confirmation to detect real breakouts

🔸 EMA 50 trend filter to reduce false signals

🔸 RSI filter to avoid extreme zones (overbought/oversold)

🔸 Plotted buy/sell arrows for clarity

⚠️ Disclaimer:
This strategy is for educational purposes only. Please backtest and paper trade before using in live markets. Performance may vary depending on asset and timefram

plot(ema50, color=color.orange)