Dynamic Levels Breakouts [Angel Algo]

9 ago 2023

INTRODUCTION
The Dynamic Levels Breakouts indicator is a powerful tool designed to identify dynamic support and resistance levels in the price action. It plots these levels on the chart and provides visual signals for bullish and bearish breakouts.


FEATURES
1. Dynamic Support and Resistance Levels.
The indicator calculates the maximum (resistance) and minimum (support) price levels within the defined rolling window. The highest high and lowest low are used to identify dynamic resistance and support levels, respectively.

2. Coloring Conditions
The indicator uses conditional coloring to highlight potential support and resistance levels. When a significant level is detected, it will be colored with a transparent overlay. Red color indicates potential resistance (max_level), and green color indicates potential support (min_level).

3. Bullish and Bearish Breakouts
The indicator also identifies potential bullish and bearish breakouts from the dynamic levels. A bullish breakout occurs when the closing price crosses above the dynamic resistance level (max_level). A bearish breakout occurs when the closing price crosses below the dynamic support level (min_level). The breakout signals are marked with arrow symbols (▲ for bullish and ▼ for bearish) below and above the respective bars.

4. Market Regime
To prevent multiple signals within a short period, the indicator considers the current market regime. If a bullish breakout has occurred recently, it will not generate a new bullish signal until a bearish breakout occurs, and vice versa.


HOW TO USE
The Dynamic Levels Breakouts indicator can be used to identify potential breakout trading opportunities. A bullish breakout signal (▲) suggests a potential long entry or an increase in buying pressure. A bearish breakout signal (▼) indicates a potential short entry or an increase in selling pressure. Traders can use these signals as a reference and combine them with other technical analysis tools and strategies for confirmation.


SETTINGS
Period (length): The user can adjust the "Period" input to define the rolling window for calculating the maximum and minimum price levels. The default value is 20, but it can be set anywhere between 2 and 30. A higher value may yield more significant levels but can also result in delayed signals