$npx -y skills add SKE-Labs/agent-trading-skills --skill breakout-tradingDefine and test closed-bar consolidation breakouts. Use when measuring boundaries, normalized break buffers, relative participation, retests, invalidation, and net execution costs.
| 1 | # Breakout Trading |
| 2 | |
| 3 | Captures explosive moves when price breaks out of consolidation zones or key support/resistance levels. |
| 4 | |
| 5 | ## Identification |
| 6 | |
| 7 | Types: **Horizontal** (flat S/R, 3+ touches), **Pattern** (triangle/wedge/flag completion), **Trendline** (trend change signal). |
| 8 | |
| 9 | ### Participation Confirmation |
| 10 | |
| 11 | Measure breakout-bar volume against the same instrument's time-of-day baseline or a predeclared rolling median. Treat relative volume, RSI, and MACD as candidate filters to validate, not confidence grades or independent votes. Require a closed bar beyond the level by a volatility- or tick-normalized buffer; do not use future follow-through to label the original entry. |
| 12 | |
| 13 | ## Workflow |
| 14 | |
| 15 | ### 1. Identify Consolidation |
| 16 | |
| 17 | ``` |
| 18 | get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<date>) |
| 19 | ``` |
| 20 | |
| 21 | Look for tight range with 3+ touches on support/resistance. |
| 22 | |
| 23 | ### 2. Mark the Level |
| 24 | |
| 25 | ``` |
| 26 | draw_chart_analysis(action="create", drawing={ |
| 27 | "type": "resistance", |
| 28 | "points": [ |
| 29 | {"time": <first_touch_time>, "price": <level_price>}, |
| 30 | {"time": <current_time>, "price": <level_price>} |
| 31 | ], |
| 32 | "options": {"text": "Breakout Level (<price>)"} |
| 33 | }) |
| 34 | ``` |
| 35 | |
| 36 | ### 3. Check Volume and Momentum |
| 37 | |
| 38 | ``` |
| 39 | get_indicators(indicator_code="mfi", symbol=<symbol>, exchange=<exchange>, interval=<interval>) |
| 40 | get_indicators(indicator_code="rsi", symbol=<symbol>, exchange=<exchange>, interval=<interval>) |
| 41 | get_indicators(indicator_code="macd", symbol=<symbol>, exchange=<exchange>, interval=<interval>) |
| 42 | ``` |
| 43 | |
| 44 | Record the close-to-level distance in ATR or ticks, relative volume, spread, and momentum progression. Apply only filter thresholds fixed before the evaluation sample. |
| 45 | |
| 46 | ### 4. Entry and Target |
| 47 | |
| 48 | Use the consolidation-height projection as a scenario, not a forecast. Choose and test one entry rule: closed-bar break or first retest within a predeclared bar window. Put invalidation back inside the range plus the tested buffer; size from that distance and modeled slippage. |
| 49 | |
| 50 | ### 5. Report to Orchestrator |
| 51 | |
| 52 | Breakout type, volume multiple, entry recommendation, measured move target, stop level, false breakout risk assessment. |
| 53 | |
| 54 | ## Evidence and Validation |
| 55 | |
| 56 | - Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes. |
| 57 | - Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried. |
| 58 | - Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter. |
| 59 | - Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status. |
| 60 | - Research basis: [Opening-range breakout research](https://www.sciencedirect.com/science/article/pii/S1544612312000438) finds conditional evidence for a specified rule, while the broader [technical-analysis review](https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID603481_code17745.pdf?abstractid=603481) warns about data snooping and costs. |
| 61 | |
| 62 | ## Key Rules |
| 63 | |
| 64 | - Require a closed-bar trigger; a wick alone is not an entry under this rule. |
| 65 | - Freeze the participation, buffer, retest-window, and invalidation definitions before testing. |
| 66 | - A close back inside the range invalidates the setup only if that exact rule was specified in advance. |
| 67 | - Do not move a stop to breakeven merely because volume declines; compare that management rule out of sample. |
| 68 | - Report `valid`, `watch`, or `no trade` when the trigger, liquidity, or cost gate is missing. |
| 69 | |
| 70 | ## Related Skills |
| 71 | |
| 72 | - **momentum-trading** -- ride the continuation after consolidation breaks |
| 73 | - **pullback-trading** -- time the retest entry after breakout |