# Volatility Breakout Strategy AI Agent Connect

> Identify market breakouts using Bollinger Band squeezes and ATR expansion filters.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_vNnAdBl0SzLqltjewktV0xXfpg4FUbKO3n5hVq1C/ai-agent-connect
- **Tags:** trading, volatility, bollinger-bands, atr, breakout

## Description

This MCP server provides a deterministic engine for detecting high-conviction market breakouts. By combining Bollinger Band volatility analysis with Average True Range (ATR) filters, it identifies when a market is transitioning from a low-volatility 'squeeze' to a high-volatility expansion. Use `analyze_volatility_regime` to detect market states, `calculate_signals` to generate actionable BUY or SELL orders, and `get_breakout_metrics` to evaluate the strength of a move based on volume and expansion rates.

## Tools

### analyze_volatility_regime
Determines the current market state (Squeeze, Expansion, or Contraction)

### calculate_signals
Generates specific BUY, SELL, or HOLD trading signals

### get_breakout_metrics
Provides a granular breakdown of the strength and characteristics of a detected breakout

## Prompt Examples

**Prompt:** 
```
Analyze the current market state for these prices: [150.2, 151.5, 152.1, 150.8, 149.5, 153.2, 155.0, 156.5, 158.0, 157.5]
```

**Response:** 
```
The current market state is expansion.
```

**Prompt:** 
```
Generate a trading signal for this price and volume data.
```

**Response:** 
```
BUY at 158.50, Stop-Loss: 155.20, Take-Profit: 162.40.
```

**Prompt:** 
```
How strong is the current breakout?
```

**Response:** 
```
The breakout has high conviction with an expansion rate of 0.15 and a significant volume spike.
```

## Frequently Asked Questions

**How do I know if a breakout is high conviction?**
You can use the `get_breakout_metrics` tool to check the volume Z-Score and the Bollinger Band expansion rate to confirm high conviction.

**What is a volatility squeeze?**
A squeeze occurs when the Bollinger Band width reaches a recent historical low, indicating low volatility and a potential upcoming breakout.

**Does this tool account for news events?**
Yes, the `calculate_signals` tool includes a filter that invalidates signals if an earnings or news event is scheduled within the next 3 days.