OPEN-SOURCE SCRIPT
L1 Breakout Indicator
Level: 1
Background
A breakout refers to when the price of an asset moves above a resistance area or below a support area. Breakouts indicate that the price may be trending in the direction of the breakout.
Function
L1 Breakout Indicator utilizes highest() and lowest() functions to define breakout levels. Use ema() to draw a trade line to detect the distance to breakout points. By doing that, you will know whether is overbought or oversold. Then, by applying a set of simple threshold inputs, you can locate the long and short entries points.
Key Signal
trade line and its lag version
Pros and Cons
Pros:
1. Simple but powerful to know overbought and oversold regions
2. Flexible input threshold values to adapt various market conditions
Cons:
1. It may satruate for extreme conditions of long and short.
2. Multiple long and short entries may be generated.
Remarks
Just simple
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Background
A breakout refers to when the price of an asset moves above a resistance area or below a support area. Breakouts indicate that the price may be trending in the direction of the breakout.
Function
L1 Breakout Indicator utilizes highest() and lowest() functions to define breakout levels. Use ema() to draw a trade line to detect the distance to breakout points. By doing that, you will know whether is overbought or oversold. Then, by applying a set of simple threshold inputs, you can locate the long and short entries points.
Key Signal
trade line and its lag version
Pros and Cons
Pros:
1. Simple but powerful to know overbought and oversold regions
2. Flexible input threshold values to adapt various market conditions
Cons:
1. It may satruate for extreme conditions of long and short.
2. Multiple long and short entries may be generated.
Remarks
Just simple
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.