META Volume Breakout

## META Volume Breakout — Full Methodology

### Accumulation Detection

1. **OBV trend:** On-Balance Volume must be making higher highs while price consolidates (smart money accumulation)

2. **Volatility compression:** ATR(14) must be below its 20-period SMA for ≥ 5 days

3. **Donchian Channel squeeze:** 20-day high minus 20-day low is in the bottom 25th percentile of the last 60 days

### Entry Criteria

1. Price closes above the 20-day Donchian Channel high

2. Volume on the breakout day is ≥ 2× the 20-day average volume

3. OBV is at or near a 20-day high (confirms institutional buying)

4. Enter long at the close of the breakout candle

### Exit Rules

- **Profit target:** 3× ATR(14) from entry

- **Stop loss:** Midpoint of the Donchian Channel (20-day midline)

- **Trailing stop:** After 2× ATR gain, trail at 1× ATR below highest close

- **Time stop:** Exit after 15 trading days

### Position Sizing

- Risk 1.5% of portfolio per trade

- META's advertising revenue volatility can create sharp moves — size accordingly

### Best Market Conditions

Works best when META has positive ad revenue catalysts (Reels monetization, AI-driven ad targeting improvements). The breakout signal captures institutional re-rating events. Underperforms in broad tech selloffs where sector rotation overrides stock-specific catalysts.

### Backtest Notes

Tested on META daily bars from Jan 2019 to Dec 2024. The 2023 "year of efficiency" rally was a textbook breakout captured by this strategy. OBV filter eliminated ~40% of false breakouts compared to price-only signals.