Breakout/Consolidation Filter [jwammo12]This indicator acts as a filter for determining recent breakouts and consolidations in price.
The first way to use the indicator is with a short lookback period. It then will paint yellow most of the time, with red marking a sharp recent breakdown in price and green marking a sharp breakout in price. This can be used to follow the breakout, or to fade it.
The second way to use the indicator is a long lookback period. This will change the output to be colored most of the time, with small sections of yellow. The yellow indicators areas where price has not made a large move in a while, or periods of consolidation. This can then be used to plan reversal trades, or follows any new trend.
The blue line is a Average True Range Percent Rank, when this value is high, it means that breakouts are less likely to trigger, since price has been moving rapidly recently, and a relative breakout would have to be a large move. When the line is low, breakouts will trigger more easily, since price has been moving relatively slowly
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Breakout Probability Indicator (FinnoVent)The Breakout Probability Indicator is a cutting-edge tool designed for traders looking to gauge the likelihood of price breakouts above or below current levels. This indicator intelligently combines Average True Range (ATR) and recent price action to provide a probabilistic insight into potential future price movements, enhancing strategy formulation and risk management.
Core Features:
Volatility Assessment: Utilizes the Average True Range (ATR) to measure market volatility, a critical component in identifying potential breakout scenarios.
Dynamic Price Levels: Calculates and plots potential breakout levels based on recent highs and lows, adjusted for current market volatility.
Probability Estimation: Provides an estimation of the probability of reaching these breakout levels, using a responsive logarithmic scale for improved sensitivity.
Real-time Updates: Continuously updates probabilities and levels as new price information becomes available, ensuring traders have the most current data at their fingertips.
Usage:
Add this indicator to any chart in TradingView to see the upper and lower breakout levels, each accompanied by a dynamically calculated probability percentage. These probabilities help traders understand the potential for price movement in either direction, forming a basis for entry or exit decisions, stop-loss placement, and strategy adjustments.
Compliance and Guidelines:
This script is shared for educational purposes, offering a novel approach to understanding market dynamics. It does not constitute financial advice and should be used as part of a comprehensive trading strategy. Traders are encouraged to backtest and paper-trade any new tool before live implementation to ensure it aligns with their trading style and risk tolerance.
Breakout of inclined trendline [Drobode]█ DESCRIPTION
The script is designed to automatically detect a possible trendline breakout under the conditions of the popular "Slanted Trendline Breakout" strategy. The algorithm assumes that during the movement the price approaches the slanted (trend) line several times. With each subsequent approach (touch) to the trend line, the price consolidates more and more near this line, the distances between the extremes (touches) decrease, which indicates a high probability of a breakout of this line. The script checks the number of touches (approaches) of the extremes and the distances between the extremes. If all conditions are met, the script draws a slanted (trend) line in the corresponding area and an arrow with a possible price breakout direction. The length of the arrow is half the height of the slanted (trend) line and may indicate the level (price) at which it is advisable to fix the profit. In the script, you can enable or disable additional analysis periods (history length, number of bars), the more periods are enabled, the slower the script may load. For example, when placing the script on M-15, we can additionally enable the period 300 or 500, which will allow us to take into account a larger number of historical bars, and this can be considered as the extremes of the older timeframe. The script calculates each period separately, so one large period will not be able to take into account and analyze smaller periods. You can set the percentage deviation of the distance of the extremes from the trend line that touch the inclined line, depending on your needs and style of technical analysis. The smaller the percentage, the more accurate and closer to the inclined line the price extreme should be and vice versa. The main goal of the script is to facilitate the trader's routine work of identifying a possible trend line breakout. However, it should be understood that the script is not a full-fledged self-sufficient strategy, in case of receiving a signal, it is recommended to additionally conduct a comprehensive thorough analysis before taking trading actions. The script can be useful for traders of all levels, both beginners and experienced analysts. Like any other strategy or script, this script can work better on some instruments than on others. When analyzing trading setups, it is desirable to have a clear trend, it is recommended to take into account the signal of this script with a small period when the arrow shows the direction of the trend. However, at the same time, it is necessary to deeply analyze many other factors at this stage, in particular, such as volumes, consolidation, volatility, candlestick patterns, etc.
█ SCRIPT SETTINGS
By default, the script was developed and tested on medium timeframes with cryptocurrency futures instruments USDT.P
Alert
The Alert function in the script is enabled by default, you just need to activate Alert in the TradingView window and select the signal source - Breakout of inclined trendline .
The notification provides the following information (example):
Possible breakout to the upside
Ticker- DOGEUSDT.P
Price- 0.15844
Timeframe- 30
Period length- 377
Periods length
The script allows you to set the length of the period (number of bars) for which the calculation will be performed. Different periods allow you to cover more timeframes (in particular, larger timeframes). You can change up to 4 periods at a time. However, if you choose too large periods, the script may slow down and the loading time will increase. To increase the loading speed of the script, disable additional periods 3, 4, i.e. uncheck the corresponding checkboxes and use only fields 1 and 2 for periods, where you can also set the period length you need.
Percentage deviation of extremes from the trend line
The next settings are the percentage deviation of the extremes from the sloping line. The smaller the deviation, the more accurate and closer to the line the extreme bars should be, however, in this case the number of identification signals will be smaller. By default, the rejection zone is - 0.15%. On larger timeframes, the deviation can be set to be larger.
Breakout/Breakdown Indicator (30 Min Range) by InvestYourAsset👉The indicator provided here is a technical analysis indicator for TradingView users that identifies potential breakout and breakdown opportunities on the initial 30-minute range in every trading session.
👉The indicator high and low of the initial 30-minute period and plotting them as horizontal lines on the chart. The high is marked in green line and the low is marked in red line.
📈The indicator then generates buy and sell signals based on whether the current close price crosses above or below the previous 30-minute high and low, respectively.
📢The indicator also has two inputs:
👉 sessionStartHour : The hour at which the trading session begins. The default value is 9, However users can change the time according to their own trading style.
👉 sessionStartMinute : The minute at which the trading session begins. The default value is 0.
These inputs can be used to adjust the indicator to the specific trading session that you are interested in.
✅How to use the Indicator:
👉To use the 30 Minute Breakout/Breakdown Indicator, simply add it to your chart and configure the inputs to your liking. Once the indicator is added to the chart, it will plot the 30-minute high and low as horizontal lines, as well as generate buy and sell signals based on the current close price.
✅Here is a step-by-step guide:
📈Open TradingView and select the chart that you want to add the indicator to.
📈Click on the "Indicators" tab and search for "30 Minute Breakout/Breakdown Indicator by InvestYourAsset".
📈Click on the indicator to add it to your chart.
📈Configure the inputs to your liking. The default values are typically fine, but you can experiment with different values to see what works best for you.
📈Once you are satisfied with the settings, click on the "Apply" button.
📈The indicator will now be displayed on your chart. You will see two horizontal lines representing the previous 30-minute high and low, as well as triangles representing buy and sell signals.
✅How to interpret the signals:
📈Buy signal : A buy signal is generated when the current close price crosses above the previous 30-minute high. This suggests that the price is likely to continue moving higher in the short term.
📈Sell signal : A sell signal is generated when the current close price crosses below the previous 30-minute low. This suggests that the price is likely to continue moving lower in the short term.
👉Traders should remember that the present indicator is just one tool that can be used to identify potential trading opportunities. It is important to use other technical analysis tools and risk management techniques to confirm your trading signals before entering any trades.
✅Things to consider while using the indicator:
📈Look for buy signals in an uptrend and sell signals in a downtrend. This will increase the likelihood of your trades being successful.
📈Place your stop losses below the previous 30-minute low for buy signals and above the previous 30-minute high for sell signals. This will help to limit your losses if the trade goes against you.
📈Consider taking profits at key resistance and support levels. This will help you to lock in your profits and avoid giving them back to the market.
Follow us for timely updates regarding indicators that we may publish in future and give it a like if you appreciate the indicator.
Breakout Candles V2Enhanced Breakout Candles indicator. On top of existing Breakout Candles, this also identifies stop and target distance based on trend.
Breakout Trend Follower StrategyThis strategy goes long when highs are broken and uses a trailing stop that follows swing lows. User can configure a back test date range and choose whether or not to only take trades above a selected moving average.
The desire for me to make this script was to try to capture those extreme breakouts that can occur after a consolidation/equilibrium pattern. This catches those using stop-buys as the entry. Out of all the scripts I have made thus far, this one is the one that has the best results. Time frames might vary due to commission structures, etc. I currently use this strategy on stocks on the 30-min time frame and crypto (with Coinbase's high fees) on the 2-hr time frame.
HL BREAKOUTThe base of the indicator is the breakout of historic High and lows.
There are 3 basic configurations
1° The High length that measure the latest 10 bars and make the "higher high"
2° The Low length taht measure the latest 10 bars and make the "lower low"
3° The Breakout PIPs administrator that defines how much pips are needed from the latest higher high to be defined as a level breakout.
So the strategy is super easy. The indicators show you the 10...20.. or whatever you need old bars high and lows.
When a breakout of that levels occurs and the candle "close" above or below and the close are more than "X" amount of PIPs a marker show up. The marker are the signals of buy and sell
I test some configurations, and work in all timeframes but.
I suggest
10, 10, 0.0003 for timeframes from 1m to 15m
and 10, 10, 0.0005 for timeframes higher than 15m
Maybe you need to test other configurations for 4h 1 day, etc the basics are the same in all timeframes, the main difference is the amount of pips that will be considered as "breakout" the higher timeframe the higher amount you need to prevent false positives.
Last words: 0.000X are for the PIPs for currencies that have 4 or 5 decimals like euro and other, if you use in YEN change it to a configuration of 2 digits decimal. Just that.
Have "fun" !
Camarilla Strategy - breakouts of H4 and L4Breakout strategy of H4 and L4 levels. Manual entries and exits - higher profits BUT because I am a novice in pinescript,
Can someone please:
1. Show me how to add exit strategy lines : close> ema(close,3) for exit short and opposite for long. I added myself but I can't make it to work in relation to camarilla entries; instead it shows all ema crossings..
2.Why some entries over/above my pivots are not shown.. Example:11.15 AM (short) and 13.10 PM (long) AAPL, October 15, today? Today would've been 3 signals, not one..
Thank you in advance for any advice. I am a strong Camarilla follower, but I am not a coder.
Breakout Indicator + OB & FVG📈 Breakout Indicator + OB & FVG
This script is designed to assist with identifying potential breakout zones following periods of low volatility or price consolidation. It integrates price structure analysis with optional lunar phase filtering for enhanced visual insights.
🔍 Key Features
Consolidation Detection: Automatically identifies price ranges with low volatility over a user-defined lookback period.
Breakout Signals: Highlights potential breakout zones when price moves beyond consolidation range highs or lows.
Take-Profit & Stop-Loss Levels: Automatically calculates three TP levels and one SL level based on user-defined multipliers.
Lunar Filter (Optional): Applies a visual overlay during full moon phases as a unique experimental timing filter.
Visual Elements:
Entry/TP/SL levels shown on chart with colored lines and labels.
Consolidation zones shaded with customizable colors.
Dynamic panel with volatility metrics and last signal info.
⚙️ Inputs & Customization
Adjustable lookback period, volatility threshold, and risk multipliers.
Optional lunar phase aggression multiplier.
Full customization of zone colors, label visibility, and transparency.
📌 Disclaimer
This indicator is a visual tool for analysis and does not provide financial advice or guaranteed outcomes. Its purpose is to support discretionary decision-making, not replace it. Past signals do not guarantee future performance. Always test tools thoroughly and use appropriate risk management.
🧠 Developer Notes
Based on simple volatility and price action mechanics.
The lunar filter is symbolic and not based on real astronomical data.
No repainting or future leaks; signals are generated based on confirmed candle closes.
Breakout Scalper (Session)This is a twist on my on my Breakout Scalper strategy that limits trading to a user-configurable session
Find the original "Continuous" version of the scalper here:
The breakout scalper is based on "slow" and "fast" donchian periods. In this version, the "slow" donchian is in fact the Day's high/low. This important difference means that we will always be entering our trades at the day's high or low, so you are exposed to the price making new highs/lows but not to oscillations within the day's range.
Furthermore, the scalper is modified to only enter trades after the start of the user-configured session. Any open trades are closed at the end of the user-configured session. The default session is set to 10:00 AM to 3:30 PM because that's when I like to trade.
UCS_RSI BreakoutRSI Breakout indicator, typically used on longer time frame (under Mid CAP) to find the next explosive stock. Can be used on monthly chart with 36 Months breakout period. Weekly with 52 Weeks Breakout period, 100 Days on daily, for Swing trading.
List of All my Indicators - www.tradingview.com
GL.
Breakout Sideway Range [5ema]This indicator can find the breakout of sideway range. The range create by the bars inside the highest bar.
Compared to my previous script name Breaking Bar , this one is different in important point:
The Highest bar can be found at higher timeframe.
No have opening candles of each session.
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How to calculate?
Find the bar have full body or full bar is highest on number left bars.
The sideway range are bars inside highest bar.
Find the bar breakout highest bar are reversal candle patterns.
The highest bar can set up on higher timeframe.
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How to set up?
Change the input value of left bar to find the highest bar.
Change the input value of right bar to find the inside bar of highest.
Select the time frame to find the highest bar. Set "chart" if want to follow chart.
Select the way find highest bar, by price high and low or open and close.
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How to use?
Choose the signal buy or sell or all.
Change the color or range if want.
Hidden, display, change color background of signal bar.
Make the alert when signal appear.
Refer the signal appear on chart:
- Signal Sell:
- Signal Buy:
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This indicator is for reference only, you need your own method and strategy.
If you have any questions, please let me know in the comments.
Breakout Probability (Expo)█ Overview
Breakout Probability is a valuable indicator that calculates the probability of a new high or low and displays it as a level with its percentage. The probability of a new high and low is backtested, and the results are shown in a table— a simple way to understand the next candle's likelihood of a new high or low. In addition, the indicator displays an additional four levels above and under the candle with the probability of hitting these levels.
The indicator helps traders to understand the likelihood of the next candle's direction, which can be used to set your trading bias.
█ Calculations
The algorithm calculates all the green and red candles separately depending on whether the previous candle was red or green and assigns scores if one or more lines were reached. The algorithm then calculates how many candles reached those levels in history and displays it as a percentage value on each line.
█ Example
In this example, the previous candlestick was green; we can see that a new high has been hit 72.82% of the time and the low only 28.29%. In this case, a new high was made.
█ Settings
Percentage Step
The space between the levels can be adjusted with a percentage step. 1% means that each level is located 1% above/under the previous one.
Disable 0.00% values
If a level got a 0% likelihood of being hit, the level is not displayed as default. Enable the option if you want to see all levels regardless of their values.
Number of Lines
Set the number of levels you want to display.
Show Statistic Panel
Enable this option if you want to display the backtest statistics for that a new high or low is made. (Only if the first levels have been reached or not)
█ Any Alert function call
An alert is sent on candle open, and you can select what should be included in the alert. You can enable the following options:
Ticker ID
Bias
Probability percentage
The first level high and low price
█ How to use
This indicator is a perfect tool for anyone that wants to understand the probability of a breakout and the likelihood that set levels are hit.
The indicator can be used for setting a stop loss based on where the price is most likely not to reach.
The indicator can help traders to set their bias based on probability. For example, look at the daily or a higher timeframe to get your trading bias, then go to a lower timeframe and look for setups in that direction.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Breakout CandlesCandle is considered breakout upon two conditions:
1. Volume is higher than volume ema. Input allows you to add markup so that you can check if volume > 10% more than EMA
2. Change from previous close or distance between open and close is greater than ATR Multiplier * ATR.
Breakout color is based on whether the value of previous close is higher or lower than present close.
I would love to have wick and border color changed too. But, looks like not possible :(
Breakout Trend FollowerThis is a Study mirroring the Breakout Trend Follower Strategy I made. I use this one during live trading and the other for backtesting. It will also give alerts when buy and sell signals are hit.
Breakout Relative Strength IndexIt isn't easy to determine if the price of a stock is about to break out. Here’s one way you can determine the relative strength of a breakout, enabling you to act early and realize higher profits.
This indicator was originally developed by Howard Wang Stocks & Commodities V. 33:09 (60–62)
Breakout IndicatorThis script allows you to set breakout alerts.
An alert will be triggered only when price breaks and closes beyond the specified prices. You will get an alert on the first candle that closes beyond the levels you set.
Breakout Scalperfirst draft of a breakout scalper which uses a fast and slow window
sets up some entry stops and then a trailing exit stop. performs a manual close when going sideways.
XBrat Range Breakout - Defining Ranges & The Trading BiasxBrat Range Breakout
Designed to help define opening ranges of major markets, along with Gold Pit opens, Oil Pit opens and for major economic data points. We recommend timeframes for opening ranges on different type of instruments further down this description
There are 6 range data points available, 4 of which are pre-defined (but can be adjusted and renamed) and then 2 spare for those important data points. All the times and label names can be adjusted.
4 Pre-Defined Openings are:
Europe Gold Pit Open (8am Europe time)
London Stock Exchange Open (9am Europe time)
New York Gold Pit Open (8.20am EST)
NYSE Open (9.30am EST)
The range is defined by a parallel coloured cloud which changes colour depending on the BIAS of the opening range, calculated automatically for our users. At the same time the Open Tag is also coloured to help identify the BIAS and indeed which direction traders should trade the Range Breakout after the first candle has closed. The range BIAS continues to be drawn on the chart until the following days open. The colour will change as per the BIAS of that opening range. This allows for multiple entries of breakouts of the defined range throughout the following 24 hours.
Range Breakout BIAS Colours
Green - Bullish BIAS - When first candle has closed only look for breakouts to the upside
Red - Bearish BIAS - When first candle has closed only look for breakouts to the downside
Yellow - Neutral BIAS - When first candle closed, look for breakouts to both upside and downside or best not to trade the breakouts as neutral BIAS indicates indecision
Time Frames we suggest for open ranges of any market open or data points are:
Metals & Energy Futures or CFDs - 5 minute time frame
Currencies - Forex Pairs or Futures - 10 minute time frame
Index Futures or CFDs - 15 minute time frame
Quantitative Breakout Bands (AIBitcoinTrend)Quantitative Breakout Bands (AIBitcoinTrend) is an advanced indicator designed to adapt to dynamic market conditions by utilizing a Kalman filter for real-time data analysis and trend detection. This innovative tool empowers traders to identify price breakouts, evaluate trends, and refine their trading strategies with precision.
👽 What Are Quantitative Breakout Bands, and Why Are They Unique?
Quantitative Breakout Bands combine advanced filtering techniques (Kalman Filters) with statistical measures such as mean absolute error (MAE) to create adaptive price bands. These bands adjust to market conditions dynamically, providing insights into volatility, trend strength, and breakout opportunities.
What sets this indicator apart is its ability to incorporate both position (price) and velocity (rate of price change) into its calculations, making it highly responsive yet smooth. This dual consideration ensures traders get reliable signals without excessive lag or noise.
👽 The Math Behind the Indicator
👾 Kalman Filter Estimation:
At the core of the indicator is the Kalman Filter, a recursive algorithm used to predict the next state of a system based on past observations. It incorporates two primary elements:
State Prediction: The indicator predicts future price (position) and velocity based on previous values.
Error Covariance Adjustment: The process and measurement noise parameters refine the prediction's accuracy by balancing smoothness and responsiveness.
👾 Breakout Bands Calculation:
The breakout bands are derived from the mean absolute error (MAE) of price deviations relative to the filtered trendline:
float upperBand = kalmanPrice + bandMultiplier * mae
float lowerBand = kalmanPrice - bandMultiplier * mae
The multiplier allows traders to adjust the sensitivity of the bands to market volatility.
👾 Slope-Based Trend Detection:
A weighted slope calculation measures the gradient of the filtered price over a configurable window. This slope determines whether the market is trending bullish, bearish, or neutral.
👾 Trailing Stop Mechanism:
The trailing stop employs the Average True Range (ATR) to calculate dynamic stop levels. This ensures positions are protected during volatile moves while minimizing premature exits.
👽 How It Adapts to Price Movements
Dynamic Noise Calibration: By adjusting process and measurement noise inputs, the indicator balances smoothness (to reduce noise) with responsiveness (to adapt to sharp price changes).
Trend Responsiveness: The Kalman Filter ensures that trend changes are quickly identified, while the slope calculation adds confirmation.
Volatility Sensitivity: The MAE-based bands expand and contract in response to changes in market volatility, making them ideal for breakout detection.
👽 How Traders Can Use the Indicator
👾 Breakout Detection:
Bullish Breakouts: When the price moves above the upper band, it signals a potential upward breakout.
Bearish Breakouts: When the price moves below the lower band, it signals a potential downward breakout.
The trailing stop feature offers a dynamic way to lock in profits or minimize losses during trending moves.
👾 Trend Confirmation:
The color-coded Kalman line and slope provide visual cues:
Bullish Trend: Positive slope, green line.
Bearish Trend: Negative slope, red line.
👽 Why It’s Useful for Traders
Dynamic and Adaptive: The indicator adjusts to changing market conditions, ensuring relevance across timeframes and asset classes.
Noise Reduction: The Kalman Filter smooths price data, eliminating false signals caused by short-term noise.
Comprehensive Insights: By combining breakout detection, trend analysis, and risk management, it offers a holistic trading tool.
👽 Indicator Settings
Process Noise (Position & Velocity): Adjusts filter responsiveness to price changes.
Measurement Noise: Defines expected price noise for smoother trend detection.
Slope Window: Configures the lookback for slope calculation.
Lookback Period for MAE: Defines the sensitivity of the bands to volatility.
Band Multiplier: Controls the band width.
ATR Multiplier: Adjusts the sensitivity of the trailing stop.
Line Width: Customizes the appearance of the trailing stop line.
Disclaimer: This indicator is designed for educational purposes and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
False Breakouts [TradingFinder] Fake Breakouts Failure🔵 Introduction
Technical indicators are essential tools for analysts and traders in financial markets, helping them predict price movements and make better trading decisions. One of the key concepts in technical analysis that should be carefully considered is the "False Breakout."
This phenomenon occurs when a price temporarily breaks through a significant support or resistance level but fails to hold and quickly returns to its previous range. Understanding this concept and applying it in trading can reduce risks and increase profitability.
🟣 What is a False Breakout?
A Fake Breakout, as the name suggests, refers to a breakout that appears to occur but fails to sustain, leading the price to quickly revert back to its previous range. This situation often happens when inexperienced or non-professional traders, under psychological pressure and eager to enter the market quickly, initiate trades.
This creates opportunities for professional traders to take advantage of these short-term fluctuations and execute successful trades.
🟣 The Importance of Recognizing False Breakouts
Recognizing False Breakouts is crucial for any trader aiming for success in financial markets. False Breakouts typically occur when the market approaches a critical support or resistance level.
In these situations, many traders are waiting to see if the price will break through this level. However, when the price quickly returns to its previous range, it indicates weakness in the movement and the inability to sustain the breakout.
🟣 How to identify False Breakouts?
To identify Fake Breakouts, it is important to carefully analyze price charts and look for signs of a quick price reversal after breaking a key level.
Here are some chart patterns that may help you identify a False Breakout :
1. Pin Bar Pattern : The Pin Bar is a candlestick pattern that indicates a price reversal. This pattern usually appears near support and resistance levels, showing that the price attempted to break through a key level but failed and reversed.
2. Fakey Pattern : This pattern, which consists of several candlesticks, indicates a False Breakout and a quick price return to the previous range. It usually appears near key levels and can signal a trend reversal.
3. Using Multiple Timeframes : One way to identify False Breakouts is by using charts of different timeframes. Sometimes, a breakout on a one-hour chart may be a False Breakout on a daily chart. Analyzing charts across multiple timeframes can help you accurately identify this phenomenon.
🔵 How to Use
Once you identify a False Breakout, you can use it as a trading signal. For this, it is best to look for trading opportunities in the opposite direction of the False Breakout. In other words, if a False Breakout occurs at a resistance level, you might consider selling opportunities, and if it happens at a support level, you might look for buying opportunities.
Here are some key points for trading based on False Breakouts :
1. Patience and Discipline : Patience and discipline are crucial when trading with False Breakouts. Wait for the False Breakout to clearly form before entering a trade.
2. Use Stop Loss : Setting an appropriate stop loss is vital when trading based on False Breakouts. Typically, the stop loss can be placed near the level where the False Breakout occurred.
3. Seek Confirmations : Before entering a trade, look for additional confirmations. These can include other analyses or technical indicators that show the price is likely to return to its previous level.
🔵 Settings
🟣 Logical settings
Swing period : You can set the swing detection period.
Max Swing Back Method : It is in two modes "All" and "Custom". If it is in "All" mode, it will check all swings, and if it is in "Custom" mode, it will check the swings to the extent you determine.
Max Swing Bac k: You can set the number of swings that will go back for checking.
🟣 Display settings
Displaying or not displaying swings and setting the color of labels and lines.
🟣 Alert Settings
Alert False Breakout : Enables alerts for Breakout.
Message Frequency : Determines the frequency of alerts. Options include 'All' (every function call), 'Once Per Bar' (first call within the bar), and 'Once Per Bar Close' (final script execution of the real-time bar). Default is 'Once per Bar'.
Show Alert Time by Time Zone : Configures the time zone for alert messages. Default is 'UTC'.
🔵Conclusion
False Breakouts, as a key concept in technical analysis, are powerful tools for identifying sudden price changes and using them in trading. Understanding this phenomenon and applying it can help traders perform better in financial markets and avoid potential losses.
To benefit from False Breakouts, traders need to carefully analyze charts and use the appropriate analytical tools. By leveraging this strategy, traders can achieve lower-risk and higher-reward trades.
