Breakout Quality Engine

The Breakout Quality Engine (BQE) identifies breakouts at significant price levels and scores their quality to help you distinguish genuine breakouts from fakeouts.

Key Levels

BQE monitors these significant price levels:

These are levels where institutional orders commonly cluster, making breakouts through them more significant.

Acceptance Confirmation

Not every level break is a genuine breakout. BQE uses acceptance confirmation to filter:

Retest Confirmation

After an accepted breakout, BQE watches for a retest:

1. Price breaks and accepts beyond a level
2. Price pulls back to retest the broken level
3. The level that was resistance becomes support (or vice versa)
4. A successful retest generates a high-confidence entry signal

Quality Scoring

Each breakout receives a quality score based on:

• Volume at the point of breakout
• Momentum of the move through the level
• Acceptance duration and conviction
• Retest behavior (clean retests score higher)
• Context — alignment with higher timeframe trend

Higher scores indicate more reliable breakouts.

Filtering Fakeouts

BQE helps you avoid common fakeout patterns:

• Wick-only breaks — Price wicks through a level but closes back inside
• Low-volume breaks — Breakouts without meaningful volume participation
• Weekend breaks — Optional filter for low-liquidity weekend price action

Settings Reference