HVN Fade & Break | Volume Profile Fade & Breakout Strategy by blitz_locked
By blitz_locked
Performance Metrics
- Author: blitz_locked
- Symbol: NASDAQ:QQQ
- Timeframe: 1 day
Description
This strategy builds a rolling multi-session volume profile directly on the chart and trades two distinct setups off it.Every time a new session begins (daily or weekly, your choice), the script closes out the prior session's histogram, tags its Point of Control as a fresh "naked" POC, and rebuilds the profile using the last N closed sessions. From that histogram it derives the session's Point of Control (POC), Value Area High/Low (VAH/VAL) via a standard two-sided volume expansion, and a set of High Volume Node (HVN) zones found through local-maximum and prominence-based peak detection — the same family of techniques used in dedicated volume-profile and Market Profile tools, reimplemented here as one self-contained strategy.Two setups fire off this structure:Fade — price pokes outside the value area and closes back inside on the same bar, with RSI confirming the reversal is overbought/oversold. Target: the session POC.Breakout — price closes cleanly through VAH/VAL on volume above its recent average. Target: the nearest HVN zone or untouched (naked) POC beyond price, falling back to a fixed R-multiple if neither exists.Stops combine an ATR-based distance with the nearest confirmed swing pivot, so both setups have a structural backstop rather than a purely volatility-based one.FeaturesRolling N-session volume profile (POC / VAH / VAL) rebuilt automatically at each new sessionHVN zone detection with adjustable peak threshold, peak window, minimum prominence, and zone widthNaked POC tracking — untouched prior-session POCs extend right until price trades back through them, and can be used as breakout targetsTwo independent, toggleable setups: mean-reversion fade and volume-confirmed breakout (run either or both)Swing-pivot + ATR hybrid stop placementOptional single-position-at-a-time restrictionFull visual layer: value area shading, POC line, HVN zone boxes, naked POC lines, and long/short signal markersBuilt-in commission and slippage modeling for realistic backtestsTipsKeep the profile period on "D" and trade a chart timeframe clearly below it (5m–15m works well) — the profile needs enough bars per session to build a meaningful histogram.Test fade-only and breakout-only separately before running both together; they behave very differently across trending vs. range-bound conditions.lookbackPeriods around 10–20 sessions is a reasonable starting range — shorter reacts faster, longer smooths out noise.Run this on liquid instruments with genuine centralized volume (index futures, large-cap equities, major ETFs). Thin names or tick-volume proxies (e.g. spot forex) will produce an unstable, unreliable profile.Walk this forward across several symbols and time windows before trusting any single backtest — with this many tunable inputs, overfitting to one chart is an easy trap.WarningsThis is an educational template, not a finished or optimized trading system. Defaults are illustrative starting points, not tuned recommendations for any specific instrument.Position sizing here is percent-of-equity, not risk-normalized — trades with wider stops risk proportionally more capital than trades with tighter stops. Understand this before sizing up.There is no minimum reward:risk filter or drawdown circuit breaker built in; the strategy will take every qualifying signal regardless of how favorable (or unfavorable) the resulting stop/target geometry is.Past performance in backtest, including on the sample chart, does not guarantee future results. This is not financial advice — verify behavior thoroughly in a simulated environment before considering live use.