OPEN-SOURCE SCRIPT
Professional Breakout Indicator (DC + ATR Filter)
Description Elements (Professional): Benefits of Donchian Channel (DC): Uses $\text{highest(high, N)}$ and $\text{lowest(low, N)}$ to determine the historical price accumulation range ($N$). Identifies resistance/support levels that serve as natural market breakout points. ATR Filter: Uses the Average True Range (ATR) multiplied by the multiplier ($\text{Multiplier}$) to increase the distance from the DC edges. Prevents False Breakouts: Signals only occur when the breakout has enough strength (momentum) to overcome the average volatility (
ATR$). Input Parameters: Allow users to customize $N$, $\text{ATR Length}$, and $\text{ATR Multiplier}$. Flexibility: The indicator can be adapted to different assets (stocks, Forex, crypto) or timeframes. Alerts ($\text{alertcondition}$): Adds an automatic alert function when a confirmed breakout signal occurs. Convenience: Traders do not need to constantly monitor the screen. Notifications can be set to be sent to mobile phones or emails. Visuals show breakout boundaries and plot shapes clearly display buy/sell signals. Clarity: Facilitates easy visual decision-making and backtesting.
ATR$). Input Parameters: Allow users to customize $N$, $\text{ATR Length}$, and $\text{ATR Multiplier}$. Flexibility: The indicator can be adapted to different assets (stocks, Forex, crypto) or timeframes. Alerts ($\text{alertcondition}$): Adds an automatic alert function when a confirmed breakout signal occurs. Convenience: Traders do not need to constantly monitor the screen. Notifications can be set to be sent to mobile phones or emails. Visuals show breakout boundaries and plot shapes clearly display buy/sell signals. Clarity: Facilitates easy visual decision-making and backtesting.Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.