First Candle Volume Break: Bullish
Buying-side version of the First Candle Volume Break: the latest completed candle is green, closes ABOVE the first candle's high, out-trades the first candle and runs at 3x or more of the stock's own typical volume for that time of day. Flags where buyers are driving a genuine volume surge. Back-test (5m and 15m, 14 months): the following hour's move was about 45-55% larger than normal on average, but holding such signals to the close lost about 2-3 bps - use it as a watch-list, not a stand-alone entry.
About This Scan
This is the buying-side view of the first candle volume break. A stock qualifies when its current candle is green, closes above the high of the session's first candle, trades more volume than that first candle, and runs at 3x or more of its own typical volume for that time of day. Together these show buyers absorbing the opening range with unusual force. Switch to 5m, 15m or 1h to match your trading speed; on the daily interval the benchmark is the first trading day of the month.
Scan Rules
Stock passes all of the below filters in the ALL segment using 5M candles:
- 1.Volume Vs First Candle greater than 1
- 2.Volume vs Same-Time Average (x) greater than or equal to 3
- 3.Traded Value (Rs lakh) greater than or equal to 500
- 4.Price vs First Candle High % greater than 0
- 5.Close greater than Open
How To Use This Scan
- •Treat the list as a watch-list: in our 14-month back-test (5m and 15m), holding such signals to the close lost about 2-3 bps on average, although the following hour's moves were about 45-55% larger than normal.
- •Look for a pullback that holds the first candle's high rather than chasing the surge candle itself.
- •Sort by Latest Vol / Typical Vol to see the most unusual activity first.
Frequently Asked Questions
What is a bullish first candle volume break?
A green candle closing above the first candle's high with more volume than the first candle and well above the stock's usual volume for that time of day.
Is it a buy signal?
No. It flags strong buying interest. Back-testing found no profit from simply buying such candles and holding to the close (about -2 to -3 bps on average), so combine it with your own risk rules.