SmartMA/STRATEGIES/Range_Breakout.md

Range Breakout Strategy (with SmartMA MT5)

Concept:
Trade only when price breaks out of a well-defined range—and confirm the move with a real volatility signal from SmartMA MT5.

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Setup

• Timeframe: 15 min or 1 hour (M15/H1)
• Asset: Any (FX, indices, gold)
• Indicator: SmartMA MT5 (default or adaptive settings)

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Entry Rules

1. Identify a Range:

   • Mark previous support and resistance levels (typically last 10–20 bars)
   • Price must be moving sideways (SmartMA regime = “Range” or “Neutral”)

2. Breakout Detection:

   • Wait for a clear close above resistance (long) or below support (short)
   • SmartMA regime switches to “Trend” and risk band widens (ATR increases)

3. News Filter:

   • Do not trade breakouts on or just before major news (SmartMA “frozen”)

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Stop Loss & Take Profit

• Stop Loss:
  Just outside the opposite side of the broken range, or
  1.2 x SmartATR from entry
• Take Profit:
  At least 2x stop distance, or trail using SmartMA risk band

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Example Pseudocode

If (SmartMA.regime == "Range" OR "Neutral") AND (price is within range): Wait for breakout bar If (SmartMA.regime == "Trend") AND (ATR widens) AND (no news): Enter trade in breakout direction SL = just outside range or 1.2 * SmartATR TP = 2x stop distance or trailing

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Why This Works

• Filters out “fake” breakouts in low-volatility phases
• Only acts when price and volatility confirm the move together
• News filter keeps you safe from whipsaws

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SmartMA MT5 – No more chasing false breakouts. Trade contextually!