Breakout Trend Follower V2

The Breakout Trend Follower V2 indicator is a trend-following tool designed to capture market breakouts while filtering signals using multi-timeframe trend analysis. It focuses on identifying higher highs and higher lows across multiple timeframes to ensure trades are aligned with the broader market direction.

Usage

The indicator can be used to identify breakout opportunities by monitoring price action relative to pivot levels. Users can select up to two higher timeframes (HTF) to serve as trend filters.

• Long Entries: Occur when the price breaks above the current timeframe's pivot high, provided the selected HTF filters also indicate an uptrend (price above HTF pivot levels).
• Exits: The strategy utilizes the pivot lows of the current timeframe as a trailing stop-loss mechanism.
• Trend Visualization: An on-chart table displays the trend status (Up/Down) for the current timeframe and the selected higher timeframes, allowing for quick reference of market alignment.

Details

Unlike standard moving average filters, this script evaluates trend health based on market structure (pivots). It identifies local peaks and troughs to establish support and resistance levels. By requiring alignment between the current timeframe and higher timeframes, the script aims to increase the probability of a successful breakout. The script plots these multi-timeframe levels as horizontal lines, which act as dynamic support and resistance zones.

Settings

Backtest Range

• Backtest Start Date: Sets the beginning of the historical data analysis.
• Backtest End Date: Sets the end of the historical data analysis.

Display

• Info Table Location: Determines whether the trend status table appears at the top or bottom of the chart.

Pivot Points

• Pivot Lookback Period: Defines the number of bars used to identify pivot highs and lows.
• Show Historical Pivot Points?: Toggles the visibility of the cross icons representing historical pivot points on the current timeframe.

Higher Timeframe Levels

• Use HTF Trend for Filtering?: Selects whether to filter signals based on the first HTF, both HTFs, or none.
• 1st/2nd High Timeframe: Sets the specific timeframes (e.g., Daily, Weekly) used for trend filtering.
• Show Multiple Timeframe S/R Levels?: Toggles the display of horizontal lines representing pivot highs and lows from higher timeframes.
• Color Settings: Customizable colors for current and higher timeframe support/resistance levels.

FAQ

How do I access Breakout Trend Follower V2?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why are some breakout signals ignored?

Signals are ignored if the "Use HTF Trend for Filtering" setting is enabled and the price is not currently aligned with the trend of the selected higher timeframes.

Can I change the sensitivity of the breakouts?

Yes, by adjusting the "Pivot Lookback Period," you can make the indicator more or less sensitive to local price extremes.