This script is a Pine Script indicator for TradingView titled **"Buy/Sell Break and Retest"**. Here's a description of its functionality:
### Purpose: The script identifies potential **buy** and **sell entry levels** based on break-and-retest patterns in the market. It works by analyzing higher timeframe data (e.g., 1-hour) and marking entries on a lower timeframe (e.g., 1-minute).
### Key Features: 1. **Configurable Timeframes**: - `Analysis Timeframe`: Used for identifying break-and-retest signals (default: 1-hour). - `Entry Timeframe`: Used for marking and plotting entries (default: 1-minute).
2. **Buy and Sell Signals**: - A **sell entry** is triggered when a bearish candle (close < open) is identified in the analysis timeframe. - A **buy entry** is triggered when a bullish candle (close > open) is identified in the analysis timeframe.
3. **Retest Logic**: - For sell signals: The retest is validated when the price breaks below the identified sell level. - For buy signals: The retest is validated when the price breaks above the identified buy level.
4. **Visual Indicators**: - Entry levels are marked with labels: - **Buy Entry**: Green labels are placed at bullish candle opens. - **Sell Entry**: Red labels are placed at bearish candle closes. - Plots the levels for easy reference: - **Sell Level**: Displayed as red circles on the chart. - **Buy Level**: Displayed as green circles on the chart.
5. **Dynamic Updates**: - Levels are cleared when invalidated by the price action.
### Use Case: This indicator helps traders spot break-and-retest opportunities by: - Allowing higher timeframe analysis to determine trend direction and key levels. - Providing actionable buy and sell entry points on lower timeframes for precision.
Let me know if you'd like further clarification or improvements!
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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