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; 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 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

• Window (default 100): candles included in the calculation.
• Smoothing Method (default RMA): ten moving averages, including RMA, TEMA, and HMA (Hull), or None to skip smoothing.
• 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?

How does it compare to band-based breakout oscillators?

What does it cost to use the Candle Breakout Oscillator?