Breakout from Flat by Eugene

A breakout system that tries to spot breakouts from flat base areas by

  1. finding a flat period by using linear regression slope close to zero
  2. finding a narrowing range by comparing atr over the lookback length to a longer period ATR
  3. finding a fairly tight period of price action by comparing the price range over the lookback to the ATR over the lookback

Buy at a stop above the highest price over the lookback period (LRlength).
Sell at stop if the price falls below the lowest low price over the lookback period (LRlength).
Sell at profit target of 3 times the highest high over the lookback period minus the lowest low over the lookback period divided by the ATR of the lookback period.

Original idea by soulaerius.

Author: Eugene
Category: Breakouts
Creation Date: 5/19/2011
Licence: Freeware
Availability: Globally
Instructions for Script Download
  1. In Wealth-Lab client software, open the Strategy Explorer (Ctrl+O)
  2. Click the "Download..." button
  3. Click "Begin Download"