Supfabio Break-Return Bands

Supfabio Break-Return Bands (B3 & B4 • 3-Candle Confirmation)

Supfabio Break-Return Bands is a volatility-based price action indicator built on top of a Two-Pole smoothing filter combined with ATR-derived dynamic bands.
It is designed to highlight price exhaustion, rejection, and potential reversal zones, with a strong emphasis on structural confirmation rather than immediate breakouts.

Core Concept

The indicator plots four volatility bands (Band 1 to Band 4) above and below a smoothed Two-Pole filter.
Signals are intentionally restricted to the outer bands, where price behavior is statistically more likely to show:

Volatility expansion

Liquidity grabs (stop runs / false breaks)

Strong rejection or mean-reversion behavior

Signal Logic
Band 4 (Primary Extreme Zone)

BUY and SELL signals are generated when:

Initial trigger (first candle)

Price either crosses the Band 4 level or

Touches and rejects the band (wick / pin behavior)

Confirmation on the 3rd candle (t + 2)

The confirmation candle:

Must not touch the same band again

Must close on the correct side of the band

Confirms that the initial break or pin was rejected

This delayed confirmation helps filter false breakouts and impulsive entries.

Band 3 (Secondary Setup)

On Band 3, signals are intentionally more selective:

Pin / rejection only

No direct cross signals

Uses the same 3-candle confirmation logic

This allows Band 3 signals to act as deeper pullback or early exhaustion setups.

Confirmation Mechanism

The script uses an internal state-based logic to:

Track the exact bar where the trigger occurred

Confirm signals only on the correct third candle

Prevent duplicate or consecutive signals from the same setup

Ensure pin-based triggers are not missed

Visual Elements

Main Two-Pole filter plotted as a thick continuous line

Volatility bands plotted with progressive line thickness

Band line styles (dotted / dashed) can be customized manually in the Style tab

Clear BUY and SELL labels plotted directly on the confirmation candle

Optional candle coloring based on filter direction

Alerts & Automation

Built-in alertcondition() for BUY and SELL

Alerts are suitable for webhook automation

Compatible with external systems and trading bots

Intended Use

This indicator is suitable for:

Reversal and exhaustion analysis

Mean-reversion strategies

Liquidity and rejection-based setups

Manual trading or automated execution

Intraday and higher-timeframe analysis

Notes

This script is intended as an analytical tool, not as a standalone trading system.
Signals should be used in combination with market structure, trend context, and proper risk management.