VABOAlgo

VOLUME ANALYSIS BREAKOUT

Quick Facts:

• Category: Breakout / Volume Analysis
• Markets: All markets with volume data
• Timeframes: 15min, 1H, 4H

Overview

The VABO Algorithm trades breakouts only when confirmed by significant volume expansion. This filter eliminates many false breakouts that occur on low volume and fail to follow through.

The principle is simple: genuine breakouts attract institutional participation visible through volume. Low-volume breakouts often fade quickly.

How It Works

BREAKOUT DETECTION Identify price breakouts:

• Break of recent high/low (lookback period)
  • Minimum breakout distance (ATR-based)
  • Confirm with close, not just wick

VOLUME CONFIRMATION Require volume expansion:

• Current volume vs average volume
  • volumeMultiplier threshold (default: 1.5x)
  • Optional: Volume trending up

ENTRY TIMING Enter only with both confirmations:

• Price breaks level AND
  • Volume exceeds threshold AND
  • No reentry until new setup forms

Key Parameters

BREAKOUT:

• breakoutLookback (20): Bars for high/low
  • breakoutBuffer (0.1): Buffer above/below level
  • useCloseConfirm (true): Require close break

VOLUME:

• volumePeriod (20): Average volume period
  • volumeMultiplier (1.5): Minimum volume ratio
  • volumeTrending (false): Require volume trend

Best Use Cases

✅ CONFIRMED BREAKOUTS with volume ✅ FALSE BREAKOUT AVOIDANCE ✅ INSTITUTIONAL PARTICIPATION detection ✅ QUALITY OVER QUANTITY trade selection