Trend Breakout Description:
This Pine Script indicator identifies pivot high and pivot low points based on user-defined left and right candle legs, detecting breakouts to signal potential trend changes. It plots horizontal lines at pivot highs (lime) and pivot lows (red), marking breakout signals with labels ("Br") when the price crosses above a pivot high or below a pivot low. The indicator also changes the background color to reflect the trend (green for uptrend, red for downtrend) with adjustable transparency. The indicator primarily focuses on recognizing specific pivot patterns to define trends and generate trading signals.
How It Works
• Pivot Detection: Identifies pivot highs and lows using configurable left (Left side Pivot Candle) and right (Right side Pivot Candle) periods.
• Pivot Highs (PH): A pivot high is identified when a candle's high is greater than a specified number of preceding candles (left leg) and succeeding candles (right leg).
• Pivot Lows (PL): Similarly, a pivot low is identified when a candle's low is less than a specified number of preceding and succeeding candles.
The script then tracks the last three pivot highs and pivot lows.
Trend Detection and Breakouts
1. High Line (Resistance): When a middle pivot high (out of the three tracked) is higher than both the previous and the next pivot high, a lime green line is drawn from that pivot high. This line acts as a dynamic resistance level.
2. Low Line (Support): Conversely, when a middle pivot low is lower than both the previous and the next pivot low, a red line is drawn from that pivot low. This line acts as a dynamic support level.
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Trading Signals : The indicator generates signals based on price crossing these dynamically drawn lines .
• Long Signal (Uptrend):
o A "Long" signal is triggered when the close price crosses above the current high line (resistance), and the indicator is not already in an uptrend.
o When a long signal occurs, the background turns green, and the high line becomes dotted and thinner. A "Br" (Breakout) label appears below the candle.
• Short Signal (Downtrend):
o A "Short" signal is triggered when the close price crosses below the current low line (support), and the indicator is not already in a downtrend.
o When a short signal occurs, the background turns red, and the low line becomes dotted and thinner. A "Br" (Breakout) label appears above the candle.
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Customizable Settings
The indicator provides three user-adjustable inputs:
• Right Side Pivot Candle (fpivotLeg): This setting (default 10) determines the number of candles to the right that must have lower highs/higher lows for a pivot to be confirmed.
• Left Side Pivot Candle (bpivotLeg): This setting (default 15) determines the number of candles to the left that must have lower highs/higher lows for a pivot to be confirmed.
• Adjust Color Visualization (Colortrnp): This setting (default 85) controls the transparency of the background color changes, allowing you to adjust how prominently the green (uptrend) and red (downtrend) backgrounds are displayed.
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How to Use It
This indicator can be used by traders to:
• Identify potential reversals: The formation of new pivot highs and lows can signal shifts in market direction.
• Spot breakout opportunities: Crossing above the high line or below the low line can indicate the start of a new trend or the continuation of an existing one.
• Confirm trend strength: The presence and extension of the high and low lines can provide visual cues about the prevailing trend.
• Ideal for swing traders or trend-following strategies.
• Use the breakout labels ("Br") and background color to confirm trend direction.
• Adjust pivot leg inputs to fine-tune sensitivity for different timeframes or assets.
• Customize transparency to suit chart readability.
Example:
On a breakout above a pivot high, a green "Br" label appears, the background turns green, and the pivot line becomes dotted. This signals a potential uptrend, helping traders identify entry points or trend confirmations.
Disclaimer: No indicator guarantees profits. Always use this indicator in conjunction with other analysis methods and proper risk management.
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Low Volatility Breakout Detector)This indicator is designed to visually identify potential breakouts from consolidation during periods of low volatility. It is based on classic Bollinger Bands and relative volume. Its primary purpose is not to generate buy or sell signals but to assist in spotting moments when the market exits a stagnation phase.
Arrows appear only when the price breaks above the upper or below the lower Bollinger Band, the band width is below a specified threshold (expressed in percentage), and volume is above its moving average multiplied by a chosen multiplier (default is 1). This combination may indicate the start of a new impulse following a period of low activity.
The chart background during low volatility is colored based on volume strength—the lower the volume during stagnation, the less transparent the background. This helps quickly spot unusual market behavior under seemingly calm conditions. The background opacity is dynamically scaled relative to the range of volumes over a selected period, which can be set manually (default is 50 bars).
The indicator works best in classic horizontal consolidations, where price moves within a narrow range and volatility and volume clearly decline. It is not intended to detect breakouts from formations such as triangles or wedges, which may not always exhibit low volatility relative to Bollinger Bands.
Settings allow you to adjust:
Bollinger Band length and multiplier,
Volatility threshold (in %),
Background and arrow colors,
Volume moving average length and multiplier,
Bar range used for background opacity scaling.
Note: For reliable results, it’s advisable to tailor the volatility threshold and volume/background ranges to the specific market and timeframe, as different instruments have distinct dynamics. If you want the background color to closely match the color of breakout arrows, you should set the same volume analysis period as the volume moving average length.
Additional note: To achieve a cleaner chart and focus solely on breakout signals, you can disable the background and Bollinger Bands display in the settings. This will leave only the breakout arrows visible on the chart, providing a clearer and more readable market picture.
Gold Breakout Strategy - RR 4Strategy Name: Gold Breakout Strategy - RR 4
🧠 Main Objective
This strategy aims to capitalize on breakouts from the Donchian Channel on Gold (XAU/USD) by filtering trades with:
Volume confirmation,
A custom momentum indicator (LWTI - Linear Weighted Trend Index),
And a specific trading session (8 PM to 8 AM Quebec time — GMT-5).
It takes only one trade per day, either a buy or a sell, using a fixed stop-loss at the wick of the breakout candle and a 4:1 reward-to-risk (RR) ratio.
📊 Indicators Used
Donchian Channel
Length: 96
Detects breakouts of recent highs or lows.
Volume
Simple Moving Average (SMA) over 30 bars.
A breakout is only valid if the current volume is above the SMA.
LWTI (Linear Weighted Trend Index)
Measures momentum using price differences over 25 bars, smoothed over 5.
Used to confirm trend direction:
Buy when LWTI > its smoothed version (uptrend).
Sell when LWTI < its smoothed version (downtrend).
⏰ Time Filter
The strategy only allows entries between 8 PM and 8 AM (GMT-5 / Quebec time).
A timestamp-based filter ensures the system recognizes the correct trading session even across midnight.
📌 Entry Conditions
🟢 Buy (Long)
Price breaks above the previous Donchian Channel high.
The current channel high is higher than the previous one.
Volume is above its moving average.
LWTI confirms an uptrend.
The time is within the trading session (20:00 to 08:00).
No trade has been taken yet today.
🔴 Sell (Short)
Price breaks below the previous Donchian Channel low.
The current channel low is lower than the previous one.
Volume is above its moving average.
LWTI confirms a downtrend.
The time is within the trading session.
No trade has been taken yet today.
💸 Trade Management
Stop-Loss (SL):
For long entries: placed below the wick low of the breakout candle.
For short entries: placed above the wick high of the breakout candle.
Take-Profit (TP):
Set at a fixed 4:1 reward-to-risk ratio.
Calculated as 4x the distance between the entry price and stop-loss.
No trailing stop, no break-even, no scaling in/out.
🎨 Visuals
Green triangle appears below the candle on a buy signal.
Red triangle appears above the candle on a sell signal.
Donchian Channel lines are plotted on the chart.
The strategy is designed for the 5-minute timeframe.
🔄 One Trade Per Day Rule
Once a trade is taken (buy or sell), no more trades will be executed for the rest of the day. This prevents overtrading and limits exposure.
Trend Breakout [Uncle Sam Trading]Trend Breakout Indicator
Overview
The Trend Breakout Indicator is a powerful, non-repainting tool designed to help traders identify high-probability breakout and trend reversal setups on any market and timeframe. By leveraging pivot points, this indicator draws dynamic support and resistance channels, highlights counter-trend breakouts, and provides visual cues for market direction. It’s ideal for traders looking to simplify their analysis while targeting key price levels for entries and exits.
Key Features
Pivot-Based Channels: Draws a red upper channel (resistance) and a green lower channel (support) by connecting recent pivot highs and lows.
Counter-Trend Breakout Signals:
Blue “CT Breakup” signal (▲) when the price breaks above the upper channel during a downtrend, indicating a potential reversal or pullback.
Orange “CT Breakdown” signal (▼) when the price breaks below the lower channel during an uptrend, signaling a potential downmove.
Trend Visualization: Background color shifts to green for uptrends and red for downtrends, making it easy to gauge market direction.
Customizable Settings: Adjust pivot detection sensitivity with “Pivot Left Bars” (default: 5) and “Pivot Right Bars” (default: 1), and control channel extension with “Channel Extension Bars” (default: 50).
Optional Trend Signals: Enable “Show Trend Change Signals” to display trend shifts with green (uptrend) or red (downtrend) arrows.
Alert Conditions: Set alerts for counter-trend breakouts and trend changes directly on TradingView.
Example Performance (BTCUSDT, 1-Hour Chart)
On the BTCUSDT 1-hour chart:
A “CT Breakdown” signal appeared on April 6 at 8:00 AM at $82,700, followed by a drop to $74,400 within hours—a 10% move.
A “CT Breakup” signal occurred on April 9 at 1:00 AM at $76,600, leading to a rally to $86,600 in a few hours—a 9% gain.
These examples highlight the indicator’s ability to spot significant price movements, though results depend on market conditions, your trading style, and risk management.
Settings
Pivot Left Bars (default: 5): Number of bars to the left for pivot detection.
Pivot Right Bars (default: 1): Number of bars to the right for pivot confirmation (ensures non-repainting signals).
Channel Extension Bars (default: 50): How far the channels extend to the right.
Show Pivot Points (default: true): Displays small triangles at pivot highs (maroon) and lows (navy).
Show Counter-Trend Breakout Signals (default: true): Shows CT Breakup and CT Breakdown signals.
Show Trend Change Signals (default: false): Displays trend shift arrows when enabled.
How to Use
Add the indicator to your chart via TradingView’s indicator library.
Adjust the settings to match your trading style and timeframe.
Watch for “CT Breakup” and “CT Breakdown” signals to identify potential trade setups.
Use the background color (green/red) to confirm the current trend.
Set alerts for breakouts or trend changes to stay updated on key signals.
Always combine with proper risk management and your own analysis—past performance is not a guarantee of future results.
Notes
The indicator is non-repainting, meaning signals are confirmed and won’t disappear after they form.
Works on any market (crypto, forex, stocks) and timeframe, such as the BTCUSDT 1-hour chart shown.
Performance varies based on market volatility and your trading strategy.
This is a free tool created to support the TradingView community—feedback is welcome in the comments!
Disclaimer
Trading involves risk, and this indicator is not a guaranteed predictor of future price movements. Always conduct your own analysis and manage risk appropriately. The examples provided (e.g., BTCUSDT signals) are for educational purposes only and reflect past performance, which may not repeat.
TQ's Support & Resistance(My goal creating this indicator): Provide a way to categorize and label key structures on multiple different levels so I can create a plan based on those observable facts.
The Underlying Concept / What is Momentum?
Momentum indicates transaction pressure. If the algorithm detects price is going up, that would be considered positive momentum. If the algorithm detects price is going down negative momentum would be detected.
The Momentum shown is derived from a price action pattern. Unlike my previous Support & Resistance indicator that used Super Trend, this indicator uses a unique pattern I created. On the first bar bearish momentum is detected a resistance Level is made at the highest point of the previous bullish condition. On the first bar bullish momentum is detected a support Level is made at the lowest point of the previous bearish condition. This happens on 5 different Momentum Levels, (short-term to long-term). I currently use this pattern to trade so the source code is protected.
What is Severity?
Severity is How we differentiate the importance of different Highs and Lows. If Momentum is detected on a higher level the Supply or Demand Level is updated. The Color and Size representing that Level will be shown. Demand and Supply Levels made by higher levels are more SEVERE than a demand level made by a lower level.
Technical Inputs
- to ensure the correct calculation of Support and Resistance levels change BAR_INDEX. BAR_INDEX creates a buffer at the start of the chart. For example: If you set BAR_INDEX to 300. The script will wait for 300 bars to elapse on the current chart before running. This allows the script more time to gather data. Which is needed in order for our dynamic lookback length to never return an error (Dynamic lookback length can't be negative or zero). The lower the timeframe the greater the number of bars need. For Example, if I open up a 1min chart I would enter 5000 as my BAR_INDEX since that will provide enough data to ensure the correct calculation of Support and Resistance levels. If I was on a daily chart, I would enter a lower number such as 800. Don't be afraid to play around with this.
- Toggle options (Close) or (High & Low) creates Support and Resistance Levels using the Lowest close and Highest close or using the Lowest low and Highest high.
Level Inputs
- The indicator has 5 Different Levels indicating SEVEREITY of a Supply and Demand Levels. The higher the Level the more SEVERE the Level.
Display Inputs
- You have the option to customize the Length, Width, Line Style, and Colors of all 5 different
- This indicator includes a Trend Chart. To Easily verify the current trend of any displayed by this indicator toggle on Chart On/Off. You also get the option to change the Chart Position and the size of the Trend Chart
How Trend Is being Determined?
(Close > Current Supply Level) if this statement is true technically price made a HH, so the trend is bullish.
(Close < Current Demand Level) if this statement is true technically price made a LL, so the trend is bearish.
- Fully customize how you display Market Structure on different levels. Line Length, Line Width, Line Style, and Line color can all be customized.
How it can be used?
(Examples of Different ways you can use this indicator): Easily categorize the severity of each and every Supply or Demand Level in the market (The higher Level the stronger the level)
: Quickly Determine the trend of any Level.
: Get a consistent view of a market and how different Levels are behaving but just use one chart.
: Take the discretion from hand drawing support and resistance lines out of your trading.
: Find and categorize strong levels for potential breakouts.
: Trend Analysis, use Levels to create a narrative based on observable facts from these Levels.
: Different Targets to take money off the table.
: Use Severity to differentiate between different trend line setups.
: Find Great places to move your stop loss too.
02 SMC + BB Breakout (Improved)This strategy combines Smart Money Concepts (SMC) with Bollinger Band breakouts to identify potential trading opportunities. SMC focuses on identifying key price levels and market structure shifts, while Bollinger Bands help pinpoint overbought/oversold conditions and potential breakout points. The strategy also incorporates higher timeframe trend confirmation to filter out trades that go against the prevailing trend.
Key Components:
Bollinger Bands:
Calculated using a Simple Moving Average (SMA) of the closing price and a standard deviation multiplier.
The strategy uses the upper and lower bands to identify potential breakout points.
The SMA (basis) acts as a centerline and potential support/resistance level.
The fill between the upper and lower bands can be toggled by the user.
Higher Timeframe Trend Confirmation:
The strategy allows for optional confirmation of the current trend using a higher timeframe (e.g., daily).
It calculates the SMA of the higher timeframe's closing prices.
A bullish trend is confirmed if the higher timeframe's closing price is above its SMA.
This helps filter out trades that go against the prevailing long-term trend.
Smart Money Concepts (SMC):
Order Blocks:
Simplified as recent price clusters, identified by the highest high and lowest low over a specified lookback period.
These levels are considered potential areas of support or resistance.
Liquidity Zones (Swing Highs/Lows):
Identified by recent swing highs and lows, indicating areas where liquidity may be present.
The Swing highs and lows are calculated based on user defined lookback periods.
Market Structure Shift (MSS):
Identifies potential changes in market structure.
A bullish MSS occurs when the closing price breaks above a previous swing high.
A bearish MSS occurs when the closing price breaks below a previous swing low.
The swing high and low values used for the MSS are calculated based on the user defined swing length.
Entry Conditions:
Long Entry:
The closing price crosses above the upper Bollinger Band.
If higher timeframe confirmation is enabled, the higher timeframe trend must be bullish.
A bullish MSS must have occurred.
Short Entry:
The closing price crosses below the lower Bollinger Band.
If higher timeframe confirmation is enabled, the higher timeframe trend must be bearish.
A bearish MSS must have occurred.
Exit Conditions:
Long Exit:
The closing price crosses below the Bollinger Band basis.
Or the Closing price falls below 99% of the order block low.
Short Exit:
The closing price crosses above the Bollinger Band basis.
Or the closing price rises above 101% of the order block high.
Position Sizing:
The strategy calculates the position size based on a fixed percentage (5%) of the strategy's equity.
This helps manage risk by limiting the potential loss per trade.
Visualizations:
Bollinger Bands (upper, lower, and basis) are plotted on the chart.
SMC elements (order blocks, swing highs/lows) are plotted as lines, with user-adjustable visibility.
Entry and exit signals are plotted as shapes on the chart.
The Bollinger band fill opacity is adjustable by the user.
Trading Logic:
The strategy aims to capitalize on Bollinger Band breakouts that are confirmed by SMC signals and higher timeframe trend. It looks for breakouts that align with potential market structure shifts and key price levels (order blocks, swing highs/lows). The higher timeframe filter helps avoid trades that go against the overall trend.
In essence, the strategy attempts to identify high-probability breakout trades by combining momentum (Bollinger Bands) with structural analysis (SMC) and trend confirmation.
Key User-Adjustable Parameters:
Bollinger Bands Length
Standard Deviation Multiplier
Higher Timeframe
Higher Timeframe Confirmation (on/off)
SMC Elements Visibility (on/off)
Order block lookback length.
Swing lookback length.
Bollinger band fill opacity.
This detailed description should provide a comprehensive understanding of the strategy's logic and components.
***DISCLAIMER: This strategy is for educational purposes only. It is not financial advice. Past performance is not indicative of future results. Use at your own risk. Always perform thorough backtesting and forward testing before using any strategy in live trading.***
Opening Range BreakoutThis is an Opening Range Breakout script. It will plot the opening range high and low (green and red lines, respectively) as determined by the user input (default is a 15 min window from market open, 9:30 - 9:45 am). The time period for the breakout is also configured by a user input (default is from 9:45 am - 2:30 pm).
Alerts are sent for breakouts either above (bullish) or below (bearish) the opening range high and low. An EMA is also used for trend confirmation before sending alerts for breakouts (to avoid false signals).
A bullish breakout is determined by all of the following being true:
- The current price being above the opening range high (green line)
- The EMA trending up (ie the current value of the EMA > prior EMA value)
- The current price is > the EMA
- The EMA is > the opening range high
A bearish breakout is determined by all of the following being true:
- The current price being below the opening range low (red line)
- The EMA trending down (ie the current value of the EMA < prior EMA value)
- The current price is < the EMA
- the EMA is < the opening range low
Enjoy this simple indicator!
Trendline Breaks with Multi Fibonacci Supertrend StrategyTMFS Strategy: Advanced Trendline Breakouts with Multi-Fibonacci Supertrend
Elevate your algorithmic trading with institutional-grade signal confluence
Strategy Genesis & Evolution
This advanced trading system represents the culmination of a personal research journey, evolving from my custom " Multi Fibonacci Supertrend with Signals " indicator into a comprehensive trading strategy. Built upon the exceptional trendline detection methodology pioneered by LuxAlgo in their " Trendlines with Breaks " indicator, I've engineered a systematic framework that integrates multiple technical factors into a cohesive trading system.
Core Fibonacci Principles
At the heart of this strategy lies the Fibonacci sequence application to volatility measurement:
// Fibonacci-based factors for multiple Supertrend calculations
factor1 = input.float(0.618, 'Factor 1 (Weak/Fibonacci)', minval = 0.01, step = 0.01)
factor2 = input.float(1.618, 'Factor 2 (Medium/Golden Ratio)', minval = 0.01, step = 0.01)
factor3 = input.float(2.618, 'Factor 3 (Strong/Extended Fib)', minval = 0.01, step = 0.01)
These precise Fibonacci ratios create a dynamic volatility envelope that adapts to changing market conditions while maintaining mathematical harmony with natural price movements.
Dynamic Trendline Detection
The strategy incorporates LuxAlgo's pioneering approach to trendline detection:
// Pivotal swing detection (inspired by LuxAlgo)
pivot_high = ta.pivothigh(swing_length, swing_length)
pivot_low = ta.pivotlow(swing_length, swing_length)
// Dynamic slope calculation using ATR
slope = atr_value / swing_length * atr_multiplier
// Update trendlines based on pivot detection
if bool(pivot_high)
upper_slope := slope
upper_trendline := pivot_high
else
upper_trendline := nz(upper_trendline) - nz(upper_slope)
This adaptive trendline approach automatically identifies key structural market boundaries, adjusting in real-time to evolving chart patterns.
Breakout State Management
The strategy implements sophisticated state tracking for breakout detection:
// Track breakouts with state variables
var int upper_breakout_state = 0
var int lower_breakout_state = 0
// Update breakout state when price crosses trendlines
upper_breakout_state := bool(pivot_high) ? 0 : close > upper_trendline ? 1 : upper_breakout_state
lower_breakout_state := bool(pivot_low) ? 0 : close < lower_trendline ? 1 : lower_breakout_state
// Detect new breakouts (state transitions)
bool new_upper_breakout = upper_breakout_state > upper_breakout_state
bool new_lower_breakout = lower_breakout_state > lower_breakout_state
This state-based approach enables precise identification of the exact moment when price breaks through a significant trendline.
Multi-Factor Signal Confluence
Entry signals require confirmation from multiple technical factors:
// Define entry conditions with multi-factor confluence
long_entry_condition = enable_long_positions and
upper_breakout_state > upper_breakout_state and // New trendline breakout
di_plus > di_minus and // Bullish DMI confirmation
close > smoothed_trend // Price above Supertrend envelope
// Execute trades only with full confirmation
if long_entry_condition
strategy.entry('L', strategy.long, comment = "LONG")
This strict requirement for confluence significantly reduces false signals and improves the quality of trade entries.
Advanced Risk Management
The strategy includes sophisticated risk controls with multiple methodologies:
// Calculate stop loss based on selected method
get_long_stop_loss_price(base_price) =>
switch stop_loss_method
'PERC' => base_price * (1 - long_stop_loss_percent)
'ATR' => base_price - long_stop_loss_atr_multiplier * entry_atr
'RR' => base_price - (get_long_take_profit_price() - base_price) / long_risk_reward_ratio
=> na
// Implement trailing functionality
strategy.exit(
id = 'Long Take Profit / Stop Loss',
from_entry = 'L',
qty_percent = take_profit_quantity_percent,
limit = trailing_take_profit_enabled ? na : long_take_profit_price,
stop = long_stop_loss_price,
trail_price = trailing_take_profit_enabled ? long_take_profit_price : na,
trail_offset = trailing_take_profit_enabled ? long_trailing_tp_step_ticks : na,
comment = "TP/SL Triggered"
)
This flexible approach adapts to varying market conditions while providing comprehensive downside protection.
Performance Characteristics
Rigorous backtesting demonstrates exceptional capital appreciation potential with impressive risk-adjusted metrics:
Remarkable total return profile (1,517%+)
Strong Sortino ratio (3.691) indicating superior downside risk control
Profit factor of 1.924 across all trades (2.153 for long positions)
Win rate exceeding 35% with balanced distribution across varied market conditions
Institutional Considerations
The strategy architecture addresses execution complexities faced by institutional participants with temporal filtering and date-range capabilities:
// Time Filter settings with flexible timezone support
import jason5480/time_filters/5 as time_filter
src_timezone = input.string(defval = 'Exchange', title = 'Source Timezone')
dst_timezone = input.string(defval = 'Exchange', title = 'Destination Timezone')
// Date range filtering for precise execution windows
use_from_date = input.bool(defval = true, title = 'Enable Start Date')
from_date = input.time(defval = timestamp('01 Jan 2022 00:00'), title = 'Start Date')
// Validate trading permission based on temporal constraints
date_filter_approved = time_filter.is_in_date_range(
use_from_date, from_date, use_to_date, to_date, src_timezone, dst_timezone
)
These capabilities enable precise execution timing and market session optimization critical for larger market participants.
Acknowledgments
Special thanks to LuxAlgo for the pioneering work on trendline detection and breakout identification that inspired elements of this strategy. Their innovative approach to technical analysis provided a valuable foundation upon which I could build my Fibonacci-based methodology.
This strategy is shared under the same Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) license as LuxAlgo's original work.
Past performance is not indicative of future results. Conduct thorough analysis before implementing any algorithmic strategy.
Support & Resistance with RSI BreakoutsThe script is a TradingView Pine Script (v5) indicator that identifies support and resistance levels using RSI (Relative Strength Index) breakouts. Here’s a breakdown of what it does:
Features:
RSI Calculation:
The script calculates the 14-period RSI (default) using the closing price.
The user can modify the RSI period through an input setting.
Buy and Sell Signals:
A buy signal is triggered when RSI drops below 20 (indicating oversold conditions).
A sell signal is triggered when RSI rises above 80 (indicating overbought conditions).
Visual Representation:
Buy signals are marked with a green upward arrow (↑) below the price bars.
Sell signals are marked with a red downward arrow (↓) above the price bars.
The arrows help traders easily spot potential trade opportunities.
Usage:
This script is useful for traders looking to buy at oversold conditions and sell at overbought conditions based on RSI.
It works best when combined with other indicators or price action strategies to confirm signals.
Premarket High/Low Breakout AlertsPremarket High/Low Breakout Alerts
Description: This custom TradingView indicator helps you track premarket breakouts and breakdowns for a list of selected stocks. The indicator monitors the premarket session and sends an alert every time the stock's price breaks above the premarket high or below the premarket low.
Key Features:
Track Multiple Stocks: Easily monitor multiple stocks (e.g., AAPL, TSLA, NVDA, etc.) and get alerts when they break premarket levels.
Premarket Session Monitoring: The indicator checks for price movements during the premarket session (4:00 AM to 9:30 AM EST).
Customizable Ticker List: Modify the list of tickers directly from the TradingView settings to suit your daily trading needs.
Breakout and Breakdown Alerts: Receive instant alerts for both breakout (above premarket high) and breakdown (below premarket low) conditions.
Plot Premarket Levels: The premarket high and low levels are plotted on the chart for easy reference.
How to Use:
Add this indicator to your chart.
Go to the indicator settings and input your desired stock tickers (e.g., AAPL, TSLA, MSFT).
The indicator will automatically track the premarket levels and send alerts when those levels are broken.
Customize the tickers daily if needed.
Ideal For:
Day Traders who want to track premarket movements.
Swing Traders looking for strong breakouts from premarket levels.
Scalpers who need quick alerts to catch price action early.
Enhanced Interval Candle with Breakout Detection and Detailed InThis indicator visualizes the last candle of a user-defined time interval (e.g., 1 hour, 4 hours, 1 day) on the current chart, providing enhanced details and breakout detection. It fetches the open, high, low, and close prices of the interval candle and draws a stylized representation of it, offset to the right of the current bar. The candle body and wicks are colored according to whether the interval candle closed bullishly (green) or bearishly (red). In addition to the candle itself, the indicator displays horizontal dotted lines representing the high, low, and midpoint of the interval candle, along with labels showing their exact values. These labels are dynamically updated as the interval candle changes. Furthermore, the script detects and visualizes breakouts of the interval candle's high or low. When the current price closes above the interval high, a green dashed line and a "Bullish Breakout" label are displayed. Conversely, when the current price closes below the interval low, a red dashed line and a "Bearish Breakout" label are shown. The breakout lines and labels are also dynamically updated. This indicator helps traders easily track the price action of a higher timeframe candle and spot potential breakouts based on that candle's range. The user can configure the time interval to suit their trading needs.
AI Volume Breakout for scalpingPurpose of the Indicator
This script is designed for trading, specifically for scalping, which involves making numerous trades within a very short time frame to take advantage of small price movements. The indicator looks for volume breakouts, which are moments when trading volume significantly increases, potentially signaling the start of a new price movement.
Key Components:
Parameters:
Volume Threshold (volumeThreshold): Determines how much volume must increase from one bar to the next for it to be considered significant. Set at 4.0, meaning volume must quadruplicate for a breakout signal.
Price Change Threshold (priceChangeThreshold): Defines the minimum price change required for a breakout signal. Here, it's 1.5% of the bar's opening price.
SMA Length (smaLength): The period for the Simple Moving Average, which helps confirm the trend direction. Here, it's set to 20.
Cooldown Period (cooldownPeriod): Prevents signals from being too close together, set to 10 bars.
ATR Period (atrPeriod): The period for calculating Average True Range (ATR), used to measure market volatility.
Volatility Threshold (volatilityThreshold): If ATR divided by the close price exceeds this, the market is considered too volatile for trading according to this strategy.
Calculations:
SMA (Simple Moving Average): Used for trend confirmation. A bullish signal is more likely if the price is above this average.
ATR (Average True Range): Measures market volatility. Lower volatility (below the threshold) is preferred for this strategy.
Signal Generation:
The indicator checks if:
Volume has increased significantly (volumeDelta > 0 and volume / volume >= volumeThreshold).
There's enough price change (math.abs(priceDelta / open) >= priceChangeThreshold).
The market isn't too volatile (lowVolatility).
The trend supports the direction of the price change (trendUp for bullish, trendDown for bearish).
If all these conditions are met, it predicts:
1 (Bullish) if conditions suggest buying.
0 (Bearish) if conditions suggest selling.
Cooldown Mechanism:
After a signal, the script waits for a number of bars (cooldownPeriod) before considering another signal to avoid over-trading.
Visual Feedback:
Labels are placed on the chart:
Green label for bullish breakouts below the low price.
Red label for bearish breakouts above the high price.
How to Use:
Entry Points: Look for the labels on your chart to decide when to enter trades.
Risk Management: Since this is for scalping, ensure each trade has tight stop-losses to manage risk due to the quick, small movements.
Market Conditions: This strategy might work best in markets with consistent volume and price changes but not extreme volatility.
Caveats:
This isn't real AI; it's a heuristic based on volume and price. Actual AI would involve machine learning algorithms trained on historical data.
Always backtest any strategy, and consider how it behaves in different market conditions, not just the ones it was designed for.
Inside Bar Breakout/Fakeout with AI Scenarios [Yosiet]Inside Bar Breakout/Fakeout Indicator with Scenarios
The Indicator is a powerful tool for traders looking to identify potential breakout and fakeout opportunities based on inside bar patterns. This indicator combines multiple technical analysis concepts to provide a comprehensive view of market behavior, helping traders make more informed decisions.
Key Features
Inside bar detection with filtering
Breakout and fakeout identification
Three distinct scenario detections
Customizable moving average calculations
Flexible visualization options
Alert conditions for various events
How It Works
The indicator identifies inside bars and filters them based on a maximum number of consecutive inside bars. It then detects breakouts and fakeouts using user-defined parameters. The script also calculates moving averages to determine trend direction.
Three specific scenarios are detected:
Strong breakout followed by a strong reversal
Weak breakout with multiple doji/weak candles
Strong breakout without reversal
These scenarios are visually represented on the chart, allowing traders to quickly identify potential trading opportunities.
How to Use
Apply the indicator to your chart
Adjust the input parameters to suit your trading style
Look for inside bar patterns and subsequent breakouts/fakeouts
Pay attention to the three scenario markers for additional context
Use the alert conditions to stay informed of potential opportunities
[blackcat] L1 Simple Dual Channel Breakout█ OVERVIEW
The script " L1 Simple Dual Channel Breakout" is an indicator designed to plot dual channel breakout bands and their long-term EMAs on a chart. It calculates short-term and long-term moving averages and deviations to establish upper, lower, and middle bands, which traders can use to identify potential breakout opportunities.
█ LOGICAL FRAMEWORK
Structure:
The script is structured into several main sections:
• Input Parameters: The script does not explicitly define input parameters for the user to adjust, but it uses default values for short_term_length (5) and long_term_length (181).
• Calculations: The calculate_dual_channel_breakout function performs the core calculations, including the blast condition, typical price, short-term and long-term moving averages, and dynamic moving averages.
• Plotting: The script plots the short-term bands (upper, lower, and middle) and their long-term EMAs. It also plots conditional line breaks when the short-term bands cross the long-term EMAs.
Flow of Data and Logic:
1 — The script starts by defining the calculate_dual_channel_breakout function.
2 — Inside the function, it calculates various moving averages and deviations based on the input prices and lengths.
3 — The function returns the calculated bands and EMAs.
4 — The script then calls this function with predefined lengths and plots the resulting bands and EMAs on the chart.
5 — Conditional plots are added to highlight breakouts when the short-term bands cross the long-term EMAs.
█ CUSTOM FUNCTIONS
The script defines one custom function:
• calculate_dual_channel_breakout(close_price, high_price, low_price, short_term_length, long_term_length): This function calculates the short-term and long-term bands and EMAs. It takes five parameters: close_price, high_price, low_price, short_term_length, and long_term_length. It returns an array containing the upper band, lower band, middle band, long-term upper EMA, long-term lower EMA, and long-term middle EMA.
█ KEY POINTS AND TECHNIQUES
• Typical Price Calculation: The script uses a modified typical price calculation (2 * close_price + high_price + low_price) / 4 instead of the standard (high_price + low_price + close_price) / 3.
• Short-term and Long-term Bands: The script calculates short-term bands using a simple moving average (SMA) of the typical price and long-term bands using a relative moving average (RMA) of the close price.
• Conditional Plotting: The script uses conditional plotting to highlight breakouts when the short-term bands cross the long-term EMAs, enhancing visual identification of trading signals.
• EMA for Long-term Trends: The use of Exponential Moving Averages (EMAs) for long-term bands helps in smoothing out short-term fluctuations and focusing on long-term trends.
█ EXTENDED KNOWLEDGE AND APPLICATIONS
• Modifications: Users can add input parameters to allow customization of short_term_length and long_term_length, making the indicator more flexible.
• Enhancements: The script could be extended to include alerts for breakout conditions, providing traders with real-time notifications.
• Alternative Bands: Users might experiment with different types of moving averages (e.g., WMA, HMA) for the short-term and long-term bands to see if they yield better results.
• Additional Indicators: Combining this indicator with other technical indicators (e.g., RSI, MACD) could provide a more comprehensive trading strategy.
• Backtesting: Users can backtest the strategy using Pine Script's strategy functions to evaluate its performance over historical data.
Bollinger Breakout Strategy with Direction Control [4H crypto]Bollinger Breakout Strategy with Direction Control - User Guide
This strategy leverages Bollinger Bands, RSI, and directional filters to identify potential breakout trading opportunities. It is designed for traders looking to capitalize on significant price movements while maintaining control over trade direction (long, short, or both). Here’s how to use this strategy effectively:
How the Strategy Works
Indicators Used:
Bollinger Bands:
A volatility-based indicator with an upper and lower band around a simple moving average (SMA). The bands expand or contract based on market volatility.
RSI (Relative Strength Index):
Measures momentum to determine overbought or oversold conditions. In this strategy, RSI is used to confirm breakout strength.
Trade Direction Control:
You can select whether to trade:
Long only: Buy positions.
Short only: Sell positions.
Both: Trade in both directions depending on conditions.
Breakout Conditions:
Long Trade:
The price closes above the upper Bollinger Band.
RSI is above the midline (50), confirming upward momentum.
The "Trade Direction" setting allows either "Long" or "Both."
Short Trade:
The price closes below the lower Bollinger Band.
RSI is below the midline (50), confirming downward momentum.
The "Trade Direction" setting allows either "Short" or "Both."
Risk Management:
Stop-Loss:
Long trades: Set at 2% below the entry price.
Short trades: Set at 2% above the entry price.
Take-Profit:
Calculated using a Risk/Reward Ratio (default is 2:1).
Adjust this in the strategy settings.
Inputs and Customization
Key Parameters:
Bollinger Bands Length: Default is 20. Adjust based on the desired sensitivity.
Multiplier: Default is 2.0. Higher values widen the bands; lower values narrow them.
RSI Length: Default is 14, which is standard for RSI.
Risk/Reward Ratio: Default is 2.0. Increase for more aggressive profit targets, decrease for conservative exits.
Trade Direction:
Options: "Long," "Short," or "Both."
Example: Set to "Long" in a bullish market to focus only on buy trades.
How to Use This Strategy
Adding the Strategy:
Paste the script into TradingView’s Pine Editor and add it to your chart.
Setting Parameters:
Adjust the Bollinger Band settings, RSI, and Risk/Reward Ratio to fit the asset and timeframe you're trading.
Analyzing Signals:
Green line (Upper Band): Signals breakout potential for long trades.
Red line (Lower Band): Signals breakout potential for short trades.
Blue line (Basis): Central Bollinger Band (SMA), helpful for understanding price trends.
Testing the Strategy:
Use the Strategy Tester in TradingView to backtest performance on your chosen asset and timeframe.
Optimizing for Assets:
Forex pairs, cryptocurrencies (like BTC), or stocks with high volatility are ideal for this strategy.
Works best on higher timeframes like 4H or Daily.
Best Practices
Combine with Volume: Confirm breakouts with increased volume for higher reliability.
Avoid Sideways Markets: Use additional trend filters (like ADX) to avoid trades in low-volatility conditions.
Optimize Parameters: Regularly adjust the Bollinger Bands multiplier and RSI settings to match the asset's behavior.
By utilizing this strategy, you can effectively trade breakouts while maintaining flexibility in trade direction. Adjust the parameters to match your trading style and market conditions for optimal results!
Half Cup [LuxAlgo]The Half Cup indicator detects and displays patterns with the shape of a Half Cup , initiating a channel. From this channel, breakouts are detected and highlighted with dots.
Users can control the shape of the Half Cup and the channel length through various settings.
Do note that the displayed half cups are displayed retrospectively, making them subject to backpainting.
🔶 USAGE
The idea behind the indicator is derived from the Cup & Handle pattern, which requires waiting for the pattern full completion.
Our Half Cup publication aims to find opportunities when the potential cup is only formed halfway.
In this example, a green dot shows the first breakout of the upper channel extremity. A few bars later, the price went under it, after which it returned above, triggering a second green dot. Both triggers were good opportunities in this case, and the price rose afterward.
The Half Cup pattern can be the start of a potential complete Cup & Handle (As in the example above, a complete Cup pattern (without the Handle ) is shown, manually drawn with dashed lines).
Every green/red dot, whether on a bullish or bearish pattern, points to a breakout respectively above/below the channel.
Besides drawing patterns and the corresponding breakouts, the Half Cup indicator can also provide insights into trends and potential opportunities in the long run.
🔶 DETAILS
🔹 Validation
Several criteria must be fulfilled before a visible pattern on the chart is drawn.
Calculations are done beforehand to know where the Half Cup pattern would be positioned.
The pattern's bottom and top edges are checked for the number of bars whose closing price is outside the half-cup area. When the number of breakouts above/below is equal to or lower than the user-defined settings ( Max % Breaks Top/Bottom ), the pattern is drawn together with a brighter-colored channel next to it.
Dots highlighting the channel's breakout can be drawn from that moment until the end of both channel lines.
🔹 Positioning
Users can adjust the following settings to fit their needs:
% Broadness: Moves the Top/Bottom line (bullish or bearish) diagonally upwards/downwards.
Vertical Shift: Shifts the entire pattern up/down.
Channel Length: Sets the line length of the channel.
Note that adjusting the position of the pattern will change the validation; the script will be rerun to check if patterns are still valid or if new patterns can be drawn. Some patterns may disappear, while new ones may appear.
Before adjusting the position, the user can set Max % Breaks Top/Bottom at 100%. When the positioning is set, Max % Breaks Top/Bottom can be set as desired.
🔹 Updated Drawings
The Half Cup pattern is always drawn retrospectively (that is it is subject to backpainting), the channel is drawn from the bar from where the pattern is detected. Every breakout of the channel will remain visible as dots.
When a new swing high/low is found while the previous swing low/high remains the same, the pattern is updated to minimize clutter. The dots of earlier drawings will remain visible (to ensure no repainting occurs), but the color becomes faded, as such bright dots are associated with patterns that are visible on the chart, while faded dots are from removed/updated patterns.
🔶 SETTINGS
Swing Length: Period used for the swing detection, with higher values returning longer-term Swing Levels.
🔹 Validation
Max % Breaks Bottom: Allowed maximum amount of bars where the closing price is below the bottom of the Half Cup pattern against the total width of the pattern (bars).
Max % Breaks Top: Allowed maximum amount of bars where the closing price is above the top of the Half Cup pattern against the total width of the pattern (bars).
🔹 Positioning
% Broadness: Moves the Top/Bottom line (bullish or bearish) diagonally upwards/downwards.
Vertical Shift: Shifts the entire pattern up/down.
Channel Length: Sets the line length of the channel.
Pivot Points Level [TradingFinder] 4 Methods + Reversal lines🔵 Introduction
"Pivot Points" are places on the price chart where buyers and sellers are most active. Pivot points are calculated based on the previous day's price data and serve as reference points for traders to make decisions.
Types of Pivot Points :
Floor
Woodie
Camarilla
Fibonacci
🟣 Floor Pivot Points
Floor pivot points are widely used in technical analysis. The central pivot point (PP) serves as the main level of support or resistance, indicating the potential direction of the trend.
The first to third levels of resistance (R1, R2, R3) and support (S1, S2, S3) provide additional signals for potential trend reversals or continuations.
Floor Pivot Points Formula :
Pivot Point (PP): (H + L + C) / 3
First Resistance (R1): (2 * P) - L
Second Resistance (R2): P + H - L
Third Resistance (R3): H + 2 * (P - L)
First Support (S1): (2 * P) - H
Second Support (S2): P - H + L
Third Support (S3): L - 2 * (H - P)
🟣 Camarilla Pivot Points
Camarilla pivot points include eight levels that closely align with support and resistance. These points are particularly useful for setting stop-loss and profit targets.
Camarilla Pivot Points Formula :
Fourth Resistance (R4): (H - L) * 1.1 / 2 + C
Third Resistance (R3): (H - L) * 1.1 / 4 + C
Second Resistance (R2): (H - L) * 1.1 / 6 + C
First Resistance (R1): (H - L) * 1.1 / 12 + C
First Support (S1): C - (H - L) * 1.1 / 12
Second Support (S2): C - (H - L) * 1.1 / 6
Third Support (S3): C - (H - L) * 1.1 / 4
Fourth Support (S4): C - (H - L) * 1.1 / 2
🟣 Woodie Pivot Points
Woodie pivot points are similar to floor pivot points but place more emphasis on the closing price. This method often results in different pivot levels than the floor method.
Woodie Pivot Points Formula :
Pivot Point (PP): (H + L + 2 * C) / 4
First Resistance (R1): (2 * P) - L
Second Resistance (R2): P + H - L
First Support (S1): (2 * P) - H
Second Support (S2): P - H + L
🟣 Fibonacci Pivot Points
Fibonacci pivot points use the standard floor pivot points and then apply Fibonacci retracement levels to the range of the previous trading period. The common retracement levels used are 38.2%, 61.8%, and 100%.
Fibonacci Pivot Points Formula :
Pivot Point (PP): (H + L + C) / 3
Third Resistance (R3): PP + ((H - L) * 1.000)
Second Resistance (R2): PP + ((H - L) * 0.618)
First Resistance (R1): PP + ((H - L) * 0.382)
First Support (S1): PP - ((H - L) * 0.382)
Second Support (S2): PP - ((H - L) * 0.618)
Third Support (S3): PP - ((H - L) * 1.000)
These pivot point calculations help traders identify potential support and resistance levels, enabling more informed decision-making in their trading strategies.
🔵 How to Use
🟣 Two Methods for Trading Pivot Points
There are two primary methods for trading pivot points: trading with "pivot point breakouts" and trading with "price reversals."
🟣 Pivot Point Breakout
A breakout through pivot lines provides a significant signal to the trader, indicating a change in market sentiment. When an upward breakout occurs and the price crosses these lines, a trader can enter a long position and place their stop-loss below the pivot point (P).
Similarly, if a downward breakout happens, a short order can be placed below the pivot point.
When trading with pivot point breakouts, if the upward trend breaks, the first and second support levels can be the trader's profit targets. In a downward trend, the first and second resistance levels will serve this role.
🟣 Price Reversal
Another method for trading pivot points is waiting for the price to reverse from the support and resistance levels. To execute this strategy, one should trade in the opposite direction of the trend as the price reverses from the pivot point.
It's worth noting that although traders use this tool in higher time frames, it yields better results in shorter time frames such as one-hour, 30-minute, and 15-minute intervals.
Support and Resistance with Signals [UAlgo]🔶 Description:
"Support and Resistance with Signals ", is designed to identify key support and resistance levels on a trading chart while also signaling potential retests (denoted as "R") and breakouts (denoted as "B"). The indicator dynamically plots support and resistance lines based on pivot points and adjusts them according to price action and sensitivity settings. It aims to assist traders in identifying significant price levels and potential reversal or breakout opportunities.
🔶 Key Features:
Pivot Points: The indicator calculates pivot highs and pivot lows based on a specified period length (Checks Left and Right bars). Adjust the length of the pivot period to control the sensitivity of support and resistance levels according to the your preferences.
Support and Resistance Lines: It plots support and resistance lines at the pivot high and pivot low points, respectively.
Retest and Breakout Signals: Signals are generated based on the sensitivity setting, which adds/subtracts a portion (half) of the Average True Range (ATR) to the pivot points. A retest signal ("R") is generated when the price approaches the support or resistance level within the sensitivity range. A breakout signal ("B") is generated when the price surpasses the support or resistance level.
Sensitivity (ATR Length): Modify the retest-breakout sensitivity length to fine-tune the generation of signals based on price volatility.
Maximum Lines : Limit the number of support and resistance lines displayed on the chart for clarity.
Line Colors and Width: Customize the colors and width of support and resistance lines for better visualization.
More Examples:
Before Retest Signal:
When the price enters the retest range at the specified sensitivity:
Disclaimer:
This indicator is provided for informational purposes only and should not be considered as financial advice. Trading involves risk, and users should conduct their own research and analysis before making any investment decisions. The retest and breakout signals generated by this indicator are based on historical price data and may not guarantee future results. Users should exercise caution and use additional confirmation methods before entering any trades based on the signals provided by this indicator.
Happy Trading !
Range DetectionThis is a simple indicator to find the sideways market or ranging market.
It is mainly focused on BTCUSD as BTCUSD doesn’t make big moves each and every candle. It makes big breakouts with one candle and then goes sideways for a longer period of time.
So, this indicator identifies those big candles and plots high and lows of those big candles using lines. New range is created only when new candles close above or below previous major candles high or low.
Turtle 20-Day Breakout (Donchian)Yes, the most important indicator used in the Turtle Rules (Turtle Trading Strategy) for finding breakouts above previous highs is the Donchian Channel. 🐢📈
Donchian Channel
The Donchian Channel is a trend-following indicator composed of three lines plotted on the chart:
Shutterstock
Upper Band: The highest high over the defined number of periods.
Lower Band: The lowest low over the defined number of periods.
Middle Line: The average of the Upper and Lower bands (not always used, but sometimes added for orientation).
The Turtle Rules use the following periods for the entry signals (breakouts) you mentioned in your query:
Short-Term (System 1): Crossing the 20-day high (this corresponds to the upper band of a Donchian Channel with a 20-period setting).
Mid-Term/Long-Term (System 2): Crossing the 55-day high (this corresponds to the upper band of a Donchian Channel with a 55-period setting).
Crossing the upper band signals a breakout and serves as the buy signal for a long position (for short positions, crossing below the lower band is used).
Is there anything else I can translate for you, or would you like me to elaborate on the Average True Range (ATR), the other key indicator used by the Turtles?
Lorentzian Length Adaptive Moving Average [LLAMA] Adaptation of "Machine Learning: Lorentzian Classification" by
Gradient color by base on work by
LLAMA: A regime-aware adaptive moving average that bends with the market.
Start with a problem traders know:
Traditional moving averages are either too slow (EMA200) or too fast (EMA9)
Adaptive MAs exist, but they often hug price too tightly or smooth too much, failing to balance bias and tactics
LLAMA uses a Lorentzian distance function to adapt its length dynamically. Instead of a fixed smoothing window, it stretches or contracts depending on market conditions. This distortion reduces lag while still providing a clear bias line.
The indicator looks back at recent bars and measures how similar they are using a Lorentzian distance (a log‑scaled absolute difference). It keeps track of the “nearest neighbors” — bars that most resemble the current regime. Each neighbor carries a label (long, short, neutral) based on simple price comparisons. By averaging these labels, LLAMA predicts whether the market is leaning bullish or bearish. That prediction is then mapped into a dynamic length between and .
Bullish bias -> length stretches toward max (smoother, more stable).
Bearish bias -> length contracts toward min (snappier, more reactive).
During breakouts, LLAMA tightens and comes into contact with bars, giving actionable signals. During chop, it stretches to avoid false triggers. It covers both ends of the spectrum (bias and tactics) in one line, something static MA's can't do.
Think of LLAMA as a lens that bends with the market:
Wide lens (max length) for big picture bias.
Narrow lens (min length) for tactical precision.
The "Lorentzian Loop" is the math that decides when to widen or narrow.
5-Minute Opening Range Breakout (ORB) - NY Session IndicatorThis TradingView indicator identifies and plots the Opening Range Breakout (ORB) based on the first 5-minute candle of the New York trading session.
Key Features:
Automatic Detection: Automatically detects the NY session open (default 9:30 AM ET, fully customizable) and captures the high/low of the first 5-minute bar
Multi-Timeframe Support: Works on any chart timeframe (1-min, 3-min, 15-min, etc.) by requesting 5-minute data
Dynamic Price Targets: Calculates both bullish (above ORB high) and bearish (below ORB low) price targets based on the opening range size
Configurable Targets: Set up to 10 price target levels on each side, with targets spaced proportionally to the ORB range
Extended Lines: All lines automatically extend ahead of the current bar by a configurable number of minutes for better forward visibility
Price Labels: Optional price labels display exact values at the end of each level
Midpoint Line: Optional dashed midpoint line shows the center of the opening range
Custom Styling: Fully customizable colors and transparency for all lines and labels
How It Works:
The indicator measures the distance between the ORB high and midpoint, then projects additional targets at equal intervals above the high (bullish targets in green) and below the low (bearish targets in red).
Why Use a 5-Minute ORB?
Tighter Range: The 5-minute opening range is typically smaller than the 15-minute range, providing more precise entry and exit levels
Earlier Signals: Breakouts are identified sooner, allowing for faster reaction times
Scalping-Friendly: Ideal for day traders and scalpers who prefer shorter timeframes and quicker price movements
Higher Probability Zones: The narrower range often creates more reliable support/resistance levels for intraday trading
Best Practices:
Works best on liquid instruments with high volume during NY session open
Combine with volume analysis to confirm breakout validity
Consider using the first target as a take-profit level for quick scalps
Watch for false breakouts within the first 15-30 minutes of the session
Easy [CHE] Easy — Minimalist Pine Script for detecting EMA direction changes to define fixed price zones for simple support and resistance visualization, ideal for manual trading workflows.
Summary
This indicator's programming is kept minimalist and super simple, with core logic in under 20 lines for easy comprehension and modification. It creates fixed price zones based on divergences between a base exponential moving average and its smoother counterpart, helping traders spot potential consolidation or reversal areas without dynamic adjustments. By locking the zone at the high and low of the signal bar, it avoids over-expansion in volatile conditions, offering a stable reference line colored by price position relative to the zone. This approach differs from expanding channels by prioritizing simplicity and persistence until a new qualifying signal, reducing visual clutter while highlighting directional bias through midpoint coloring.
Motivation: Why this design?
Traders often face noisy signals from moving averages that flip frequently in sideways markets or lag during breakouts, leading to premature entries or missed opportunities. This indicator addresses that by focusing on confirmed direction shifts between the base and smoothed averages, then anchoring a non-expanding zone to capture the initial price range of the shift. The result is a cleaner tool for marking equilibrium levels, assuming price respects these bounds in ranging or mildly trending conditions.
What’s different vs. standard approaches?
- Reference baseline: Traditional moving average crossovers or simple channels that update every bar.
- Architecture differences:
- Zones are set only on new divergence signals and remain fixed until reset by a gap from the prior zone.
- No ongoing high-low expansion; relies on persistent variables to hold bounds across bars.
- Midpoint plotting with conditional coloring based on close position, plus a highlight for zone initiations.
- Practical effect: Charts show persistent horizontal references instead of drifting lines, making it easier to gauge if price is rejecting or embracing the zone—useful for avoiding false breaks in low-volatility setups.
How it works (technical)
The indicator first computes a base exponential moving average of closing prices over a user-defined length, then applies a second exponential moving average to smooth that base. It checks if both the base and smoothed values are increasing or decreasing compared to their prior values, indicating aligned direction. A signal triggers when this alignment breaks, marking a potential shift.
On a new signal, if the current bar's high and low fall outside any existing zone (or none exists), the zone bounds update to those extremes and persist via dedicated variables. The midpoint of these bounds becomes the primary plot line, colored green if below the close (bullish lean), red if above (bearish lean), or gray otherwise. A secondary thick line highlights the midpoint briefly when a zone first sets, aiding visual confirmation. No higher timeframe data or external fetches are used, so updates occur on each bar close without lookahead.
Parameter Guide
EMA Length — Sets the period for the base moving average; longer values smooth more, reducing signal frequency but increasing lag. Default: 50. Trade-offs/Tips: Shorter for faster response in intraday charts (risks noise); longer for daily trends (may miss early shifts).
Smoother Length — Defines the period for the secondary smoothing on the base average; higher values dampen minor wiggles for stabler direction checks. Default: 3. Trade-offs/Tips: Keep low (2–5) for sensitivity; increase to 7+ if zones trigger too often in choppy markets, at cost of delayed signals.
Reading & Interpretation
The main circle plot at the zone midpoint serves as a dynamic equilibrium line: green suggests price is above the zone (potential strength), red indicates below (potential weakness), and gray shows containment within bounds (neutral consolidation). A sudden thick foreground line at the midpoint flags a fresh zone start, prompting review of the prior bar's context. Absence of a plot means no active zone, implying reliance on price action alone until the next signal.
Practical Workflows & Combinations
- Trend following: Enter long on green midpoint after a higher low touches the zone lower bound, confirmed by structure like higher highs; filter shorts similarly on red with lower highs.
- Exits/Stops: Use the opposite zone bound as a conservative stop (e.g., below lower for longs); trail aggressively to midpoint on strong moves, tightening near gray neutrality.
- Multi-asset/Multi-TF: Defaults work across forex and stocks on 1H–Daily; for crypto volatility, shorten EMA Length to 20–30. Pair with volume oscillators for confirmation, avoiding isolated use.
Behavior, Constraints & Performance
- Repaint/confirmation: Plots update on bar close using historical closes, so confirmed signals hold; live bars may shift until close but without future references.
- security()/HTF: Not used, eliminating related repaint risks.
- Resources: Minimal overhead—no loops, arrays, or bar limits exceeded; suitable for real-time on any timeframe.
- Known limits: Fixed zones may lag in strong trends (price drifts away without reset); signals skip if no gap from prior zone, potentially missing clustered shifts. Assumes standard OHLC data; untested on non-equity assets.
Sensible Defaults & Quick Tuning
Start with EMA Length at 50 and Smoother Length at 3 for balanced daily charts. If signals fire too frequently (e.g., in ranges), extend EMA Length to 100 for fewer but stabler zones. For sluggish response in trends, drop Smoother Length to 2 and EMA Length to 30, monitoring for added noise. In high-vol setups, widen both to 75/5 to filter extremes, trading speed for reliability.
What this indicator is—and isn’t
This is a lightweight visualization layer for EMA-driven zones, aiding manual chart reading and basic signal spotting. It is not a standalone system, predictive model, or automated alert generator—integrate with broader analysis like market structure and risk rules. (Unknown/Optional: No built-in alerts or multi-timeframe scaling.)
Disclaimer
The content provided, including all code and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context.
Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved.
By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk.
Do not use this indicator on Heikin-Ashi, Renko, Kagi, Point-and-Figure, or Range charts, as these chart types can produce unrealistic results for signal markers and alerts.
Best regards and happy trading
Chervolino
