Volatility + Momentum Breakout Signals

**Volatility + Momentum Breakout Signals**

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## 🎯 **Purpose**

This indicator is designed to **identify potential breakout opportunities** — both **bullish** and **bearish** — by combining **volatility expansion** with **momentum direction**.

Breakouts are often more reliable when both volatility and momentum agree. This tool helps detect such alignments early.

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## 📐 **How It Works**

The indicator uses **3 key components**:

### 1. **Average True Range (ATR)**

* Measures **market volatility** — how wide the price is moving.
* If ATR is **rising**, it means price is swinging more — indicating energy buildup.

### 2. **Bollinger Band Width (BB Width)**

* Measures the **distance between upper and lower Bollinger Bands**.
* If BB Width is **increasing**, the bands are expanding — signaling a possible breakout after a tight range.

### 3. **Relative Strength Index (RSI)**

* Measures **momentum** of price direction.
* If RSI is **above 50 and rising**, the trend is bullish.
* If RSI is **below 50 and falling**, the trend is bearish.

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## 📈 **Signal Conditions**

### ✅ **Bullish Breakout Signal** (Buy)

* **ATR is rising**
* **BB Width is rising**
* **RSI is above 50 and rising**

🟢 If all three occur, a **Buy Signal** is plotted with a green triangle at the bottom of the chart.

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### 🚫 **Bearish Breakout Signal** (Sell)

* **ATR is rising**
* **BB Width is rising**
* **RSI is below 50 and falling**

🔴 If all three occur, a **Sell Signal** is plotted with a red triangle at the top of the chart.

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## 📊 **What Is Plotted**

* **RSI line** with 30, 50, and 70 reference levels.
* **BB Width (%)** — shows how wide the Bollinger Bands are (orange line).
* **ATR** — the actual range of price movement (purple area).
* **Buy/Sell Markers** when conditions align.

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## 🛠️ **Usage**

This indicator is ideal for:

* **Breakout traders** — to catch sharp price moves.
* **Swing traders** — to identify strong momentum continuation.
* **Volatility-based entry strategies**.