Breakout Legend

This indicator identifies price consolidation zones (“squeeze” areas) and highlights potential breakouts with visually striking candlestick colors and directional arrows. Unlike conventional Bollinger Band or Donchian Breakout tools, this system incorporates probabilistic analysis to estimate the likelihood of breakout success.

Key Features:

Squeeze Detection: Consolidation areas are marked with semi-transparent boxes, giving a clear visual of price compression.

Breakout Highlighting: Breakout bars are colored bright green (up) or red (down) with directional arrows, making trend shifts immediately visible.

Probability Assessment (internal): Behind the scenes, the system evaluates past signals using RSI and ADX-based criteria to estimate how likely a breakout is to occur. This probabilistic approach allows the system to gauge potential strength and avoid false signals common in traditional methods.

Trend Quality Filtering: Optional filters based on ADX and volume help distinguish stronger breakout chances from weaker ones.

Why It’s Different:

Unlike standard squeeze indicators, this system does not only react to the current breakout. It analyzes historical consolidation zones and internal signal patterns to provide a probabilistic measure of breakout potential.

It considers both momentum (RSI) and trend strength (ADX) simultaneously, integrating them into an internal probability model to maximize the chance of catching meaningful moves.

Visuals (candlestick coloring, arrows, boxes) are designed for intuitive understanding without revealing the proprietary calculations behind the probability model.

Usage Note:

The indicator is designed for educational and analytical purposes; it highlights potential breakout areas but does not provide guaranteed trade signals. Users should combine it with their own risk management and market analysis.