Breakout Scanner
Identifies Bollinger Band squeezes where bandwidth drops to historical lows, then alerts when price breaks out with above-average volume. Filters false breakouts using ATR confirmation.
What is this scanner?
The Breakout Scanner identifies Bollinger Band squeezes where bandwidth drops to historical lows, then fires when price breaks out with above-average volume. Unlike basic breakout detection, this scanner uses ATR confirmation to filter false breakouts.
The key insight is that volatility is mean-reverting — periods of extremely low volatility are inevitably followed by expansion. By measuring BB width relative to its own history and requiring volume confirmation, the scanner identifies high-probability expansion points.
Origin & History
Bollinger Band breakout trading was popularized by John Bollinger himself in the early 1990s. The bandwidth indicator — measuring the distance between upper and lower bands as a percentage of the middle band — became a standard volatility compression tool.
Modern implementations, including QSA's, add ATR (Average True Range) as a confirmation layer. J. Welles Wilder developed ATR in 1978, and its combination with BB squeezes reduces false signals by confirming that the breakout represents genuine range expansion, not just a brief spike.
Detection Criteria
BB Width Percentile
Bandwidth falls below the 10th percentile of its 100-period range — extremely tight compression relative to recent history.
ATR Confirmation
ATR begins expanding after the squeeze, confirming the breakout represents genuine volatility expansion rather than a single anomalous candle.
Volume Threshold
Breakout candle volume exceeds the 20-period average by at least 1.5x, confirming institutional-level participation.
Price Action
Candle closes outside the Bollinger Bands with a body-to-wick ratio above 0.5, indicating conviction rather than rejection.
Grading Breakdown
Extreme squeeze (sub-5th percentile) breaking with 3x+ volume and multi-timeframe alignment. Rare and powerful.
Strong squeeze with clear ATR expansion and above-average volume. Good institutional confirmation.
Valid squeeze but volume is borderline or ATR expansion is minimal. Worth monitoring for follow-through.
Marginal squeeze — bandwidth is low but not extreme, or the breakout lacks volume conviction.
Common Mistakes
Chasing breakouts that have already moved 3-5% beyond the squeeze range. The best entries are near the breakout level.
Not checking the higher timeframe trend. A 1h breakout against the 4h trend has lower follow-through probability.
Confusing a brief spike above the bands with a real breakout. Wait for a candle close, not an intra-candle touch.
Using this scanner alone without cross-referencing volume or regime data for additional confirmation.
How to Trade
Entry Context
Enter on the close of the breakout candle if volume confirms. Alternatively, wait for a small pullback to the upper BB (for longs) for a lower-risk entry. Avoid chasing if price has already moved 3%+ beyond the bands.
Risk Management
Stop loss below the middle Bollinger Band (20-period SMA). This gives the trade room to breathe while invalidating the thesis if price returns to the mean. Position size: 1-2% risk.
Target Framework
Target 1: Previous swing high/low. Target 2: 2x ATR projected from the breakout. After Target 1, trail using the middle BB. Exit fully if price closes back inside the bands.
Related Scanners
All 46 scanners · Top 8 free · No credit card required
See live setups →This is not a prediction of future price movement — it is a way to prioritize which setups deserve your analysis first.
QuantScan AI scans 150+ crypto perpetuals in real-time, 24/7. Not financial advice. Past performance does not guarantee future results.