Probabilistic Breakout Forecaster

Calculates the statistical probability of a breakout occurring within the next N bars using a log-normal distribution model. Displays probability as a percentage overlay with projected price targets.

ForecastingMachine LearningPro
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About This Indicator

The Probabilistic Breakout Forecaster uses a log-normal distribution model trained on historical breakout behaviour to estimate the probability that price will break a given level within the next N bars. Rather than simply drawing support/resistance lines, it gives you a live probability score that updates bar by bar.

The model factors in volatility regime, time spent at the level, volume profile near the zone, and distance from the mean producing a probability percentage that traders can use as a confidence filter before entering breakout trades.

Key Features

  • Real-time breakout probability score (0–100%) displayed on chart
  • Log-normal distribution model calibrated to current volatility regime
  • Projected price target levels based on historical breakout distances
  • Configurable forecast horizon (next 5, 10, or 20 bars)
  • Alert when probability exceeds a user-defined threshold
  • No repainting probabilities update on bar close only

How to Use

  • Only enter breakout trades when probability score is above 65%
  • Use projected target levels to set take-profit levels before entry
  • A probability drop from high to low while price is at resistance = weakness signal
  • Best on 1H–4H timeframes; calibrate forecast horizon to your trade duration
  • Combine with volume surge confirmation to filter false breakouts