Choose the stock for which you want to determine the entry buy and sell levels based on the Range Breakout Method theory.

How to Use the Tool

Here’s a concise explanation of the key columns:

  • Buy Above: Level for placing Buy orders, signaling upward breakouts.
  • Sell Below: Level for placing Sell (Short) orders, indicating downward breakdowns.
  • Buy SL (Stop Loss): Stop-loss levels for Buy positions to manage risks.
  • Sell SL (Stop Loss):  Stop-loss levels for Sell positions to protect your capital.
  • Buy Target (1, 2, 3): Offers three profit target levels for Buy positions.
  • Sell Target (1, 2, 3): Provides three profit target levels for Sell positions.

The 5 Days Range Breakout Trading Strategy

Trading within a range is a common phenomenon in financial markets. 

It often signals a period of consolidation, where the price seems to be stuck between defined levels. 

  • For traders, this can be both frustrating and challenging. 
  • However, experienced traders know that these periods of consolidation can lead to powerful opportunities when the price eventually breaks out of its range.
Let’s break down the strategy with Python code to make it more understandable: 
				
					# Calculate Day's Range and Average 5 Days Range
days_range = min(High - Open, Open - Low)
average_5_days_range = sma(Days_Range, 5)

# Calculate BuyAbove and SellBelow
BuyAbove = Open + average_5_days_range
SellBelow = Open - average_5_days_range

# Calculate Buy Stop Loss (BuySL) and Sell Stop Loss (SellSL)
BuySL = SellBelow
SellSL = BuyAbove

# Logic for Placing Orders
if CMP > BuyAbove:
    PlaceBuyOrder()
elif CMP < SellBelow:
    PlaceSellOrder()

# Calculate Buy and Sell Targets
BuyTarget1 = BuyAbove + average_5_days_range
BuyTarget2 = BuyTarget1 + average_5_days_range
BuyTarget3 = BuyTarget2 + average_5_days_range

SellTarget1 = SellBelow - average_5_days_range
SellTarget2 = SellTarget1 - average_5_days_range
SellTarget3 = SellTarget2 - average_5_days_range

In this Python code representation of the strategy:

  • We first calculate the day's range and the average 5-day range using appropriate formulas.
  • Then, we determine the BuyAbove and SellBelow price levels, which represent the breakout points for taking positions. Buy Stop Loss (BuySL) and Sell Stop Loss (SellSL) levels are also calculated.
  • The logic for placing orders is straightforward. If the current market price (CMP) crosses above BuyAbove, we place a Buy order. If it crosses below SellBelow, we place a Sell (Short) order.
  • Finally, we calculate the Buy and Sell targets. BuyTarget1 represents the first target, BuyTarget2 is the second, and BuyTarget3 is the third target. Similarly, SellTarget1, SellTarget2, and SellTarget3 are calculated for Sell positions.

This Python code beautifully captures the essence of the Range Breakout strategy, making it more accessible and understandable.

*Please be aware that occasional freezing of the sheet might occur due to data retrieval from Google Finance.

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