Pymander's EZ Breakout Finder

The Momentum Breakout Highlighter is a versatile price-action tool designed to identify high-conviction breakout candles. Unlike standard breakout indicators that trigger on any breach of a high or low, this script uses a multi-layered filtering system to ensure that signals represent genuine market commitment rather than "noise" or low-volume fakeouts.
How It Works
The script monitors a user-defined lookback period to establish local resistance (highs) and support (lows). A signal is generated only when three distinct conditions are met:
The Breakout: Price must breach the highest high or lowest low of the lookback period. Users can choose whether this requires a Wick breach or a full Close beyond the level.
The Momentum Filter: The candle’s body size (Open to Close) is compared against the average body size of the lookback period. A signal only triggers if the candle shows "effort"—meaning its body is significantly larger than the recent average.
The Trend Context: Signals are filtered via a Volume Weighted Moving Average (VWMA). By default, it follows the trend (Longs above VWMA, Shorts below), but it also includes a Mean Reversion Mode for contrarian traders.
Key Features
Momentum Verification: Uses an adjustable multiplier to ensure breakout candles have the necessary "thrust" to sustain a move.
Mean Reversion Mode: A unique toggle that flips the trend logic, allowing you to find high-momentum exhaustion moves back toward the VWMA.
Advanced Signal Management:
Cooldown Timer: Prevents "signal clustering" by requiring a set number of bars to pass before a new signal can trigger.
Opposite Direction Filter: An optional mode that forces signals to alternate between Bullish and Bearish, perfect for swing traders looking for "one-way" entries.
Visual Clarity: Features bar highlighting, triangular plotshapes (arrows), and optional reference lines for the previous high/low levels.
What Makes It Stand Out?
Most breakout indicators fail during choppy markets because they lack a volatility component. This script solves that by integrating Body-to-Average momentum logic. By requiring the "breakout" candle to be larger than its predecessors, it filters out "exhaustion wicks" and low-liquidity drifts.
Furthermore, the inclusion of VWMA Trend Bias ensures you are always trading with volume-weighted support, and the Cooldown/Directional filters make it an excellent tool for automating alerts without being overwhelmed by repetitive signals during high-volatility spikes.
How to Use
For Trend Following: Use the default settings to catch high-momentum entries in the direction of the trend.
For Mean Reversion: Enable "Mean Reversion Mode" to catch "Blow-off tops" or "Panic bottoms" that break local ranges against the primary trend.
For Scalping: Lower the lookback period and cooldown for faster signals on lower timeframes.
Good luck and enjoy!