Malama's Range Breakout

Malama's Range Breakout is a dynamic indicator designed to automatically detect periods of price consolidation (tight ranges) and generate actionable signals for breakouts or wick-based reversals.

Why It's Useful: Unlike fixed-time tools like Opening Range Breakouts (ORB), this indicator is Adaptive. It uses a volatility-adjusted threshold (ATR multiplier) to determine when a market is truly consolidating. This helps traders avoid false signals in choppy markets and focus on periods where volatility is compressing.

Key Features:

Adaptive Detection: Uses ATR over a user-defined lookback to find tight ranges automatically.

Preset Profiles: Quickly switch between optimized settings for:

Scalping: (Tight Ranges)

Intraday: (Normal Ranges)

Swing Trading: (Loose Ranges)

Options/Chop: (Extreme sideways movement)

Breakout Signals: Triggers "BUY/SELL" labels when price closes outside the box. Includes an optional Volume Filter to ignore low-momentum breakouts.

Wick Reversals: Detects "Fake-outs" where wicks probe the range boundary but fail to close outside, signaling a potential reversal back into the range.

How to Use:

Select a Profile: Choose "Normal" for standard day trading or "Tight" for scalping.

Wait for the Box: The indicator will draw an orange box when price consolidates.

Trade the Break: Wait for a confirmed close outside the box (Look for the "Malama BUY/SELL" label).

Watch for Rejection: If you see a "Wick" label, it means the breakout failed—be cautious or trade the reversal.

Settings:

Profile: Select your trading style (Scalping, Intraday, Swing).

Volume Filter: Require a volume spike to confirm breakouts (Recommended).

Wick Confirmation: Require a confirmation candle before signaling a wick reversal.