CCI Divergence Volume Breakout [josseliani]

CCI Divergence Volume Breakout combines confirmed CCI divergence with a relative-volume candle level. It waits for a confirmed close beyond that candle's high or low before displaying a BUY or SELL signal, and it can optionally map Entry, a volume-candle-based stop, 1R, and historical R-reach statistics.

The default settings are tuned for XAUUSD on the 7-minute chart, but the indicator can be adapted to other instruments and timeframes. The statistics dashboard updates for the current symbol, timeframe, loaded chart history, and selected inputs, making it easy to see how different settings affect the sample size and historical R-reach rates.

→ HOW I USE IT

The default settings are the configuration I currently use for XAUUSD on the 7-minute chart.

Seven minutes is the favorite timeframe of my wonderful wave-analysis teacher. I built this version around the way he studies the market: first CCI divergence, then a meaningful volume spike. After that, he moves on to his own wave-analysis methods, including trendlines, wave count, structure, and broader market context. This indicator does not reproduce or replace his complete method. I use it as a supporting tool within my own wave analysis.

With the default settings, the script first searches for a confirmed CCI divergence. It then selects a qualifying volume candle connected to that divergence. The first search covers the divergence span; if necessary, it checks the area around the second pivot and then watches the post-confirmation candidate window. A qualifying candle must have volume of at least 1.5 times its 20-bar average.

For a bullish divergence, the high of the selected volume candle becomes the confirmation level. A BUY signal appears only after a candle closes above that high within the permitted breakout window.

For a bearish divergence, the low of the selected volume candle becomes the confirmation level. A SELL signal appears only after a candle closes below that low within the permitted breakout window.

The optional trade map starts from the open of the candle after the signal. It displays an Entry line, a stop behind the opposite edge of the exact volume candle plus the selected ATR delta, and a 1R reference target.

I use the dashboard to compare configurations rather than to treat one historical percentage as a promise. For example, changing the minimum volume multiple, pivot-matching radius, maximum distance between pivots, candidate-search window, or breakout window changes how often historical observations reached 0.5R, 1R, 2R, and 3R. This helps me see the trade-off between signal selectivity and historical excursion.

→ HOW THE INDICATOR WORKS

→ 1. Automatic CCI pivot scan

The script evaluates confirmed CCI pivots using strengths 3, 5, 7, and 9. The first pivot must be beyond the selected extreme threshold. The second pivot may form closer to the center of the oscillator.

A bullish divergence requires price to form a lower low while CCI forms a higher low. A bearish divergence requires price to form a higher high while CCI forms a lower high.

CCI pivots require bars on the right to become confirmed. For that reason, divergence lines are anchored to their historical pivot candles only after confirmation. They do not represent information that was available on the original pivot candle. BUY and SELL signals are evaluated only on confirmed closes after the divergence has been confirmed.

→ 2. Price-pivot matching

CCI and price do not always turn on exactly the same candle. Price Pivot Match Radius searches on both sides of each CCI endpoint for the corresponding price high or low.

Maximum Price/CCI Span Difference then checks that the two price pivots and the two CCI pivots describe approximately the same market swing. Lower values require tighter alignment; higher values allow more flexibility.

→ 3. Relative-volume candle selection

When a divergence becomes confirmed, the script first searches its pivot-to-pivot span for qualifying volume candles and selects the qualifying candle with the greatest reported volume. If that search finds none, it also checks the area around the second pivot. Search After Divergence then defines how many new bars after confirmation may supply a qualifying candidate. Volume is measured relative to its moving average:

Relative volume = candle volume / average volume

The default requirement is 1.5 times the 20-bar average. Candle direction is not used. For a bullish setup, the selected candle's high becomes the level. For a bearish setup, its low becomes the level.

Maximum Candidates controls how many qualifying volume levels one divergence may create. You can use up to three qualifying volume-candle candidates for each confirmed divergence. The default is one to keep the chart and signal source unambiguous. With this default, an already selected historical candidate fills the single slot; otherwise, the first qualifying post-confirmation candidate can fill it.

→ 4. Breakout confirmation and signal window

The volume level begins as gray. It changes to the bullish or bearish color only when price closes beyond it on a confirmed candle:

Bullish divergence: confirmed close above the selected volume candle's high.

Bearish divergence: confirmed close below the selected volume candle's low.

Breakout Signal Window defines how many bars that exact volume level is permitted to produce a BUY or SELL signal. The count begins when the level is created. Once the window expires, the level cannot trigger a late signal and cannot add a late observation to the statistics.

→ 5. Expired levels

Keep Expired Levels Visible separates signal validity from visual analysis.

When it is enabled, an unbroken level continues as a gray reference after its signal window expires. The expired line is visual only: it cannot produce a BUY or SELL signal and is not reactivated by a new calendar day, exchange day, or session. It remains visible until a newer qualifying volume level replaces it.

When Keep Expired Levels Visible is disabled, the gray line ends when its breakout signal window expires.

This indicator does not carry or re-arm levels according to a calendar boundary or timezone.

→ OPTIONAL TRADE MAP

The trade map is a visual measurement tool, not an automated order-placement system.

Entry: open of the candle following the confirmed BUY or SELL signal.

Stop: opposite edge of the exact volume candle that produced the signal, plus the selected ATR delta.

1R: one initial-risk unit from Entry.

The map helps compare the signal with the user's own execution, market structure, and risk plan. It is not financial advice and does not account for spread, slippage, commissions, or individual position sizing.

→ STATISTICS DASHBOARD

The dashboard reports historical reach rates for the current symbol, timeframe, loaded chart history, and selected inputs. It is designed for configuration comparison.

Completed: observations that reached the stop, reached 3R, or reached the maximum evaluation window.

Reached >=0.5R: completed observations whose maximum favorable excursion reached at least half of the initial risk.

Win Rate >=1R: completed observations that reached at least 1R before the stop.

Reached >=2R / >=3R: completed observations that reached those excursion levels before the stop.

Average MFE: average maximum favorable excursion, expressed in R, across completed observations.

Active / Invalid: observations still being evaluated and observations rejected because a valid positive risk distance could not be constructed.

Only breakouts confirmed while their volume level is inside its active signal window create statistical observations. An expired gray reference does not create a trade in the dashboard.

If the stop and a target fall inside the same historical candle, the script gives the stop priority because OHLC data cannot reveal the intrabar sequence. This is intentionally conservative.

These figures are descriptive historical measurements, not a backtest equity curve, not a profit factor, and not a forecast of future results. They can change with the data provider, symbol, timeframe, available history, and settings.

→ DEFAULT XAUUSD 7-MINUTE PRESET

CCI Length: 20
CCI Source: Typical Price (HLC3)
First Pivot Extreme Level: +/-150
Maximum Bars Between Pivots: 60
Price Pivot Match Radius: 7
Maximum Price/CCI Span Difference: 35%
Volume Average Length: 20
Minimum Volume x Average: 1.5
Search After Divergence: 15 bars
Maximum Candidates per Divergence: 1
Breakout Signal Window: 40 bars
Keep Expired Levels Visible: On
Show Entry / SL / 1R Markup: On

→ ALERTS

Bullish CCI Divergence: fires when a bullish divergence becomes confirmed.

Bearish CCI Divergence: fires when a bearish divergence becomes confirmed.

CCI Volume Long Signal: fires after a confirmed close above an active bullish volume level.

CCI Volume Short Signal: fires after a confirmed close below an active bearish volume level.

→ ORIGINALITY

This script is not a standard CCI divergence plot and not a generic volume-spike marker. Its purpose is to connect four separate stages in one workflow: multi-strength confirmed CCI divergence, price-pivot alignment, relative-volume candle mapping, and close-confirmed breakout authorization.

Candidate search, signal lifetime, visual reference lifetime, trade measurement, and historical R-reach analysis are kept separate. This makes it possible to change one part of the workflow and see how it affects signal frequency and the historical statistics without confusing an expired visual level with an active signal source.

→ LIMITATIONS

CCI, volume, and divergence are analytical tools, not guarantees of reversal or continuation. Pivot confirmation introduces an intentional delay. Historical volume and results can differ between data providers. Signals should be evaluated with market structure, liquidity, volatility, wave context, and personal risk management. The default preset was developed for how I analyze XAUUSD on 7 minutes; other markets and timeframes require independent testing.