PCCE + False Breakout Detector

PCCE + False Breakout Detector

Type: Invite-Only Indicator (closed source)
Purpose: Detect price compression and the first expansion after it, while flagging failed breakouts (bull/bear traps) for risk control.

1) What’s original here!

This tool integrates three behaviour-driven tests that work in a single decision flow:
A compression score built from:
(a) monotonic body shrink,
(b) wick-dominance, and
(c) relative range contraction versus history.
This is not a bands/oscillator port; it’s a structure-first filter that isolates coils.

A thrusted expansion requirement that combines real-body impulse and relative-volume participation (+ optional EMA alignment) to qualify a breakout beyond the coil envelope.

An immediate post-breakout failure test (trap logic) that checks whether the breakout re-enters the prior swing range within a short window.

Used together, these steps turn raw breaks into contextual, risk-aware events: setup → trigger → validation. That is the value of the combination.

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2) Concepts behind the calculations:

Let body_t = |close_t − open_t|,
uw_t = high_t − max(open_t, close_t) (upper wick),
lw_t = min(open_t, close_t) − low_t (lower wick),
R_t(k) = highest(high, k)_t − lowest(low, k)_t (range over k bars),
MA_body(k) = SMA(body, k), MA_vol(k) = SMA(volume, k).

2.1 Compression (coil) detection

We evaluate within a window k = coilLength:
• Body shrink count: number of consecutive steps where body_(t−i) < body_(t−i−1).
• Wick dominance: AvgWickBody = avg( (uw + lw) / body ) over the window; require AvgWickBody > wickRatioMin.
• Relative range contraction: current R_t(k) must be less than α × avg( R_(t−j)(k) ) computed over a lookback of rangeWindow windows, with α < 1 (tight market).

When all three are true, we mark a coil zone; the coil bounds are High_coil = highest(high, k), Low_coil = lowest(low, k).

2.2 Expansion (“Burst”) confirmation

A breakout is only qualified when all hold on bar close:
• Direction: close > High_coil → up; close < Low_coil → down.
• Body thrust: body_t > MA_body(k) × bodyMult.
• Participation: volume_t > MA_vol(k) × volumeMultiplier.
• Trend alignment (optional): close_t > EMA(emaLen) for up / < EMA for down.
• Cooldown: t − lastSignal > cooldownBars.

If satisfied, print Burst↑ or Burst↓ on that bar.

2.3 Failed breakout (trap) detection

Let H_s and L_s be the prior swing high/low from a lookback rangeLookback (excluding the current bar). Define:
• Bull break attempt: a bar that closed above H_s.
Bull trap: within fakeoutBars bars after that attempt, any close returns below H_s. Mark ❌ red above that bar.
• Bear break attempt: a bar that closed below L_s.
Bear trap: within fakeoutBars bars after that attempt, any close returns above L_s. Mark ❌ green below that bar.

Alerts fire on bar close only.

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3) What you’ll see on the chart
• Coil box: shaded envelope (tight-range bounds).
• Burst labels: Burst↑ / Burst↓ only when thrust + volume (and optional EMA) confirm the break.
• Trap markers: ❌ red (failed bullish breakout) / ❌ green (failed bearish breakout).
• Alerts: “Burst Up” and “Burst Down” (close-based).

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4) How to use it
1. Preparation: When a coil box appears, mark the bounds; expect expansion risk to rise.
2. Trigger: Act only on Burst labels (they already encode body/volume thrust and optional trend).
3. Validation: If a ❌ trap prints shortly after a breakout, treat it as a warning/exit event; breakouts that re-enter the prior swing range are statistically fragile.
4. Context: Works well on 15m–4H where structure is visible. Combine with your own higher-timeframe bias, S/R, liquidity pools, and risk rules.
5. Tuning:
• Tighten/loosen coil sensitivity via coilLength, wickRatioMin, and the range contraction factor.
• Use larger bodyMult / volumeMultiplier to demand stronger breaks.
• cooldownBars controls clustering in fast sessions.
• rangeLookback and fakeoutBars control how strict the trap check is.

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5) Repainting, scope, and limitations
• Burst and trap labels are evaluated on bar close; once printed, they do not repaint. Coil boxes can update while forming; they stabilize once conditions are met.
• Sudden news/illiquid periods can defeat filters; adjust multipliers and cooldown for your instrument.
• This is an indicator, not a strategy; it does not publish PnL, win-rate, or forward promises.