VM Breakout BB

VM Breakout BB is a breakout detection indicator based on Bollinger Bands combined with statistical probability analysis (Z-score and the normal cumulative distribution function, CDF) and smart confirmation filters such as RSI, ADX, and Volume SMA. The indicator aims to deliver signals with a clear statistical basis, reduce noise, and confirm breakouts that have a higher probability of success.

• Buy: price closes above the Upper Band, the breakout probability reaches the configured threshold, and confirmation filters are satisfied (RSI/ADX/Volume when enabled).

• Sell: price closes below the Lower Band, the breakout probability reaches the configured threshold, and confirmation filters are satisfied (when enabled).

The ConfirmOnClosedBar option only confirms signals after the bar closes to reduce false triggers. Users can select signal strictness: Relaxed, Normal, or Strict to match different trading styles.

• RSI Filter: removes signals occurring in overbought or oversold zones.

• ADX Filter: allows signals only when ADX exceeds the threshold, confirming a clear trend.

• Volume SMA Filter: compares current volume to its moving average to confirm breakout strength.

Display note: to draw arrows and send alerts, set Show_BuySell_Signals = true. If this option is off, the indicator will not draw arrows or send alerts.

• Detects breakouts based on statistical probability (Z-score and CDF) rather than price break alone.

• Multi-layer filters (RSI, ADX, Volume) reduce false signals.

• Suitable for both scalping and swing trading.

• Single-alert mechanism avoids alert spam.

• M1-M5: Ideal for scalping and fast breakout signals.

• M15-H1-D1: Better for swing and high-quality breakouts with fewer but stronger signals.

Suggestions: use higher timeframes with larger Bollinger periods and wider deviations for more reliable signals. Prefer markets with good liquidity and volatility.