Quantifying Breakouts – Stop Guessing, Start Measuring

Breakouts look exciting—until they fail. Retail traders chase price expansion without context. Smart traders validate breakouts with volume, strength, and momentum before pulling the trigger. This quantitative system leverages the Money Flow Index (MFI), a volume-weighted momentum oscillator, on end-of-day charts to objectively score breakout quality. Instead of hoping a resistance break holds, you'll know whether institutional money is backing the move or if it's just noise. What makes it different: • Rules-based approach eliminates emotional decision-making • Filters out weak breakouts driven by low conviction • Works on consolidation breakouts, range expansions, and new highs • Combines price action with volume confirmation for double validation Your Edge: Trade real momentum backed by volume and price strength—stop chasing fakeouts and start capturing follow-through.