# Candle Breakout Oscillator A price-action oscillator that scores how consistently candles close beyond the prior bar's high or low, splitting the market into bullish, bearish, and sideways plots normalized from 0 to 100. Crosses of the 80/20 thresholds flag regime strength, weakness, and chop-to-trend transitions. Suits breakout and momentum traders who want regime context before price confirms it. - Indicator in the LuxAlgo Library, by LuxAlgo, published May 28, 2025. - Access: free. - Concepts: [Breakout](https://www.luxalgo.com/library/concept/breakout/) (primary), [Momentum](https://www.luxalgo.com/library/concept/momentum/) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn0qa5000xvhsgjnn7pib2 - Page: https://www.luxalgo.com/library/indicator/candle-breakout-oscillator/ **Candle Breakout Oscillator** reads the market one close at a time, scoring how consistently candles finish beyond the previous bar's extremes. A close above the prior high or below the prior low counts as a [breakout](https://www.luxalgo.com/library/concept/breakout/); a close inside the prior range counts as indecision. Three plots (bullish, bearish, and sideways) normalize those readings onto a 0–100 scale, so a glance shows which crowd controls the tape and how firmly. ## How to Trade the Candle Breakout Oscillator? - **A plot above 80**: near-maximum strength for that regime: bulls stacking closes above prior highs, bears breaking prior lows, or chop dominating the window. - **A plot below 20**: that group has gone quiet, pronounced weakness in its behavior. - **Bullish/bearish crossovers**: dominance changing hands between buyers and sellers, often before the [momentum](https://www.luxalgo.com/library/concept/momentum/) shift is obvious on price. - **Sideways plot crossing 80 or 20**: the market slipping into, or breaking out of, a range-bound phase. Values leaving an extreme are as informative as values reaching one: touching 80 flags trend maturity or potential exhaustion, while rolling back off it points to a possible reversal or consolidation phase. Volume or price-delta weighting can sharpen the raw readings on markets where participation matters. ## Candle Breakout Oscillator Settings - **Execution Window** (default 100): candles included in the calculation. - **Smoothing Method**: ten options, including RMA, TEMA, and Hull. - **Smoothing Length**: responsiveness of the chosen filter. - **Weighting Method**: None, Volume, or Price. Volume suits participation-sensitive markets, Price weights by movement intensity. - **Top Threshold** (default 80): the strength line. - **Bottom Threshold** (default 20): the weakness line. ## Frequently Asked Questions ### Can the Candle Breakout Oscillator identify ranging markets? Yes. That is one of its distinguishing features. The dedicated sideways plot rises as closes keep landing within the previous candle's range, and its moves through the thresholds flag transitions between choppy and trending conditions. ### How does it compare to band-based breakout oscillators? This build derives everything from closes measured against the preceding candle's high and low: pure price action, no bands in the trigger. The [Bollinger Bands Breakout Oscillator](https://www.luxalgo.com/library/indicator/bollinger-bands-breakout-oscillator/) measures breakouts against volatility bands instead, so the two make an instructive pair. ### What does it cost to use the Candle Breakout Oscillator? Nothing. It is free on the LuxAlgo Library. From this page you can also run it inside Quant, our coding agent, and see how its regime readings line up with the markets you trade. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [Breakouts with Tests & Retests](https://www.luxalgo.com/library/indicator/breakouts-with-tests-retests/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/breakouts-with-tests-retests.md - [Breakout Detector (Previous MTF High Low Levels)](https://www.luxalgo.com/library/indicator/breakout-detector-previous-mtf-high-low-levels/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/breakout-detector-previous-mtf-high-low-levels.md - [Luminance Breakout Engine](https://www.luxalgo.com/library/indicator/luminance-breakout-engine/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/luminance-breakout-engine.md - [Probabilistic Breakout Forecaster](https://www.luxalgo.com/library/indicator/probabilistic-breakout-forecaster/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/probabilistic-breakout-forecaster.md - [Gap Fill Breakouts](https://www.luxalgo.com/library/indicator/gap-fill-breakouts/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/gap-fill-breakouts.md - [Trendline Breakout Navigator](https://www.luxalgo.com/library/indicator/trendline-breakout-navigator/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/trendline-breakout-navigator.md - [Momentum Cycle Sentry](https://www.luxalgo.com/library/indicator/momentum-cycle-sentry/) (Momentum): markdown at https://www.luxalgo.com/library/indicator/momentum-cycle-sentry.md - [Momentum Terrain 3D](https://www.luxalgo.com/library/indicator/momentum-terrain-3d/) (Momentum): markdown at https://www.luxalgo.com/library/indicator/momentum-terrain-3d.md --- Source: https://www.luxalgo.com/library/indicator/candle-breakout-oscillator/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/