OPEN-SOURCE SCRIPT
Breaks and Retests with MA Filter (SMA/EMA)
This indicator is designed to identify breakouts at support and resistance levels, incorporating a Moving Average (MA) filter for further validation of the breakout conditions. Here's a brief explanation of the script:
Key Features:
Moving Average (MA) Filter:
Users can choose between two types of moving averages:
Simple Moving Average (SMA)
Exponential Moving Average (EMA)
The length of the selected MA can also be customized.
The script uses the MA to filter breakouts:
Bullish Breakout: A bullish breakout occurs when the price crosses above the resistance level, but the price must also be above the MA.
Bearish Breakout: A bearish breakout occurs when the price crosses below the support level, but the price must be below the MA.
Support and Resistance Levels:
Support is determined by the pivot lows (local minimum points) and Resistance is determined by the pivot highs (local maximum points) over a user-defined lookback range.
These levels are represented as boxes on the chart for easy visualization.
Breakout Detection:
The script detects when the price breaks above the resistance level (bullish breakout) or below the support level (bearish breakout).
The breakout conditions are validated using the selected Moving Average filter.
When a breakout occurs, a label is placed on the chart to mark the event ("Resistance Breakout" or "Support Breakout").
Alerts:
The script includes several alert conditions:
New Support Level (when a new support is identified)
New Resistance Level (when a new resistance is identified)
Resistance Breakout (when price breaks above resistance and MA filter is met)
Support Breakout (when price breaks below support and MA filter is met)
Alerts can be customized based on these conditions.
Conclusion:
This indicator helps traders by marking breakout points in the market with extra confirmation from a Moving Average filter, ensuring that breakouts occur in the direction of the trend. Traders can also get notified of these breakouts with customizable alerts, enhancing the decision-making process.
Key Features:
Moving Average (MA) Filter:
Users can choose between two types of moving averages:
Simple Moving Average (SMA)
Exponential Moving Average (EMA)
The length of the selected MA can also be customized.
The script uses the MA to filter breakouts:
Bullish Breakout: A bullish breakout occurs when the price crosses above the resistance level, but the price must also be above the MA.
Bearish Breakout: A bearish breakout occurs when the price crosses below the support level, but the price must be below the MA.
Support and Resistance Levels:
Support is determined by the pivot lows (local minimum points) and Resistance is determined by the pivot highs (local maximum points) over a user-defined lookback range.
These levels are represented as boxes on the chart for easy visualization.
Breakout Detection:
The script detects when the price breaks above the resistance level (bullish breakout) or below the support level (bearish breakout).
The breakout conditions are validated using the selected Moving Average filter.
When a breakout occurs, a label is placed on the chart to mark the event ("Resistance Breakout" or "Support Breakout").
Alerts:
The script includes several alert conditions:
New Support Level (when a new support is identified)
New Resistance Level (when a new resistance is identified)
Resistance Breakout (when price breaks above resistance and MA filter is met)
Support Breakout (when price breaks below support and MA filter is met)
Alerts can be customized based on these conditions.
Conclusion:
This indicator helps traders by marking breakout points in the market with extra confirmation from a Moving Average filter, ensuring that breakouts occur in the direction of the trend. Traders can also get notified of these breakouts with customizable alerts, enhancing the decision-making process.
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 publications 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.