SpringboardAlgo

MOMENTUM SPRINGBOARD STRATEGY

Quick Facts:

• Category: Momentum / Breakout
• Markets: All markets
• Timeframes: 5min, 15min, 1H

Overview

The Springboard Algorithm identifies momentum coiling patterns where price consolidates against a key level before "springing" in the opposite direction. The system detects compression of momentum indicators followed by rapid expansion—like a coiled spring releasing stored energy.

This pattern often occurs at support/resistance levels where multiple failed tests build energy for an eventual breakout.

How It Works

MOMENTUM COMPRESSION DETECTION Identify coiling momentum:

• Track RSI range over N bars
  • Track MACD histogram compression
  • Compression = Low volatility in momentum indicators

LEVEL TESTING Price repeatedly tests a level:

• Support tests: Multiple lows at similar price
  • Resistance tests: Multiple highs at similar price
  • Minimum tests required for valid springboard

SPRINGBOARD TRIGGER The release occurs when:

• Momentum expands (RSI/MACD moves strongly)
  • Price breaks the tested level
  • Volume confirms the move

ENTRY CONFIRMATION Trade the springboard release:

• Direction opposite to the tested level
  • Bullish: Breaks above resistance that was tested
  • Bearish: Breaks below support that was tested

Key Parameters

COMPRESSION:

• compressionPeriod (10): Bars to measure compression
  • compressionThreshold (20): Max RSI range for compression
  • minCompressionBars (5): Minimum bars in compression

LEVEL TESTING:

• levelTolerance (0.2): ATR ratio for level clustering
  • minLevelTests (3): Minimum tests for valid level

TRIGGER:

• expansionMultiple (1.5): Momentum expansion vs compression
  • volumeConfirmation (true): Require volume spike

Best Use Cases

✅ BREAKOUT TRADING after coiled consolidation ✅ FAILED BREAKOUT REVERSALS (failed tests then spring) ✅ RANGE BOUNDARY TRADING with momentum confirmation ✅ ENERGY BUILD-UP detection before moves