AI Breakout Bands Indicator

Overview

The AI Breakout Bands Indicator creates dynamic price channels using advanced AI-based filtering.
Bands are generated around a Kalman-filtered midline, highlighted with turquoise and purple zones.
Ideal for identifying breakouts, reversals, and trend continuation setups.

Core Algorithm

Uses a 2-state Kalman Filter (position + velocity) to estimate price’s center of gravity.
Automatically adjusts measurement noise R based on real-time price confidence.
Output is refined using a K-Nearest Neighbor (KNN) nonlinear smoother.
Result: A reliable and adaptive midline with responsive band behavior.

Trading Usage

Uptrend Confirmation:
- Price closes above the midline.
- Midline slope turns positive.
- Candlestick body closing above midline signals valid buy breakout.
Downtrend Confirmation:
- Price closes below the midline.
- Midline slope turns negative.
- Candlestick body closing below midline signals sell breakout.

Indicator Classification

Category: Trading Assist → Bands & Channels
Type: Reversal + Multi-Timeframe
Skill Level: Intermediate
Platform: MetaTrader 4
Suitable Markets:
- Forex
- Stocks
- Indices
- Commodities
- Crypto

Key Benefits

Pinpoints true breakouts with AI smoothing logic.
Filters noise and false signals effectively.
Works across multiple timeframes for intraday and swing trading.
Helps traders visualize bullish and bearish waves clearly.

Input Settings & Controls

Process Noise – Position: Noise parameter used for smoothing position data
Process Noise – Velocity: Kalman-based noise factor for estimating speed
Measurement Noise (R): Degree of inaccuracy present in incoming measurements
K-Neighbor Length: Range size for selecting nearby K-points
Slope Window: Candle window applied for slope evaluation
Band Lookback (MAE): Number of bars reviewed to build breakout bands using MAE
Band Multiplier: Scaling factor applied to the bands
Transparency (0–100): Visual opacity level of chart elements
Bullish Color: Color used when the market is trending upward
Bearish Color: Color used when the market is trending downward

Devices Supported

Device Type	Operating System	Compatibility with TradingView
💻 Windows Laptop/Desktop	Windows XP / Vista / 7 / 8 / 8.1 / 10 / 11	✅ Fully supported via app
🍏 MacBook / iMac	macOS 10.15+	✅ Fully supported via app
📱 Android / Mobile	Android OS	❌ Not supported

Risk Disclaimer

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