Indicator to add avoid false breakout

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My breakout EA work on different currency pairs need an indicator to help to avoid false breakout. May be consider the volume or anything else is OK. Please advise.

Thanks
Peter
 
Kam Yuk Wong:
My breakout EA work on different currency pairs need an indicator to help to avoid false breakout. May be consider the volume or anything else is OK. Please advise.

Code Base

ATR Cycles

Ryan L Johnson, 2025.11.08 14:29

A volatility filter based on 3 ATR's: a fast ATR, a middle ATR, and a slow ATR

 

Nice idea. I have found that a simple ATR-based filter on the breakout bar, combined with checking the price position relative to the session open, removes a large share of false breakouts — especially in XAUUSD during the London open.

 
The more conditions you add your edge will be smaller. In other words if you cannot accept a lot of small losses you will not have outlier trades.
 
Daniel-gheorghe Muresan #:
The more conditions you add your edge will be smaller. In other words if you cannot accept a lot of small losses you will not have outlier trades.
This is generally true, but there is a way to detect when a move is fake versus when a trend continuation is significant. There are only few effective ways to code a reliable detection system for fake breakouts. The most effective I've seen was a profit retrace detector or point retrace detector. If the position went up about 8% profit and went back down to 0% profit then you can verify that as a fake breakout and close the trade.
 
Conor Mcnamara #:
This is generally true, but there is a way to detect when a move is fake versus when a trend continuation is significant. There are only few effective ways to code a reliable detection system for fake breakouts. The most effective I've seen was a profit retrace detector or point retrace detector. If the position went up about 8% profit and went back down to 0% profit then you can verify that as a fake breakout and close the trade.
this is why i use a trail stop when i first open a trade -- and increase the distance between the current price and the stop, OR disable the trail stop -- when profit exceeds X.
 
Michael Charles Schefe #:
this is why i use a trail stop when i first open a trade -- and increase the distance between the current price and the stop, OR disable the trail stop -- when profit exceeds X.
that's a good approach as well
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