OPEN-SOURCE SCRIPT
Easyalgo RangeTracker
The "Two Candle High-Low Breakout Strategy" is a simple and well-known range breakout strategy that involves marking the high and low of the first two candles and waiting for a breakout in either direction. If the high of the second candle is broken, a long position is taken, and if the low of the second candle is broken, a short position is taken. The stop loss and target levels are set based on a fixed point value.
Additionally, to avoid false range breakouts, traders can use additional filters such as volume analysis, price action, and technical indicators. For example, traders can wait for a significant increase in trading volume to confirm a breakout or use technical indicators like the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD) to confirm the trend.
In this strategy, we also include an additional stop loss condition where the trade is exited if any candle closes below the entry point (for a long position) or above the entry point (for a short position).
Overall, the "Two Candle High-Low Breakout Strategy" is a simple and effective strategy that can be used by traders to identify potential trading opportunities and manage risk using fixed stop loss and target levels. However, traders should be aware of false breakouts and use additional filters to confirm the breakout before entering a trade.
Additionally, to avoid false range breakouts, traders can use additional filters such as volume analysis, price action, and technical indicators. For example, traders can wait for a significant increase in trading volume to confirm a breakout or use technical indicators like the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD) to confirm the trend.
In this strategy, we also include an additional stop loss condition where the trade is exited if any candle closes below the entry point (for a long position) or above the entry point (for a short position).
Overall, the "Two Candle High-Low Breakout Strategy" is a simple and effective strategy that can be used by traders to identify potential trading opportunities and manage risk using fixed stop loss and target levels. However, traders should be aware of false breakouts and use additional filters to confirm the breakout before entering a trade.
Open-source script
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