When price spends a long stretch trapped in a tight sideways band, it is building up energy. A range breakout fires when price finally closes beyond the top or bottom of that band, escaping the range. Signalix uses roughly a 24-hour window to define the range, which approximates a full session of back-and-forth accumulation.
In plain terms
Price was stuck going sideways for about a day, then broke out of the box. The longer the quiet build-up, the more meaningful the escape.
What triggers it
Two conditions must hold on the breakout bar:
- A tight range existed: the previous 96 bars (24 hours on the 15m chart) were squeezed into a total spread smaller than 1x the ATR.
- A clean break: the current candle closes above the range high (bullish) or below the range low (bearish).
How Signalix scores strength
This is a 4 out of 5 alert. Breakouts that follow a long, tight build-up tend to resolve strongly, because all that sideways compression implies pent-up imbalance that has to release somewhere.
A note on timeframes
The 24-hour setting fits the 15m and 1h charts well. On the 4h and daily charts the equivalent build-up window is different, and those settings live in the detector's configuration rather than being one fixed number.