MTF Breakout/Retest

The MTF Breakout/Retest indicator allows traders to monitor custom support and resistance levels across multiple timeframes simultaneously to identify confirmed breakout and retest events.

Usage

The tool is primarily used to track user-defined price levels and receive visual confirmation when those levels are breached on various timeframes.

• Long Breakout: Occurs when a candle closes above a specified resistance level. It is confirmed when a subsequent candle remains above that level without returning to test it. The indicator will highlight the level/timeframe label in green.
• Short Breakout: Occurs when a candle closes below a specified support level. It is confirmed when a second candle closes below the support level without a retest. The indicator highlights the level/timeframe label in red.
• Retest/Reset: If price action crosses back through the level (a retest), the color-coding resets to the default inactive color, allowing traders to track real-time market sentiment changes.

Traders can operate on a low timeframe (e.g., 1-minute chart) while the indicator labels display status updates from higher timeframes such as 5, 15, 30, or 60 minutes.

Details

The script executes a specific logic to filter out "fakeouts." A valid breakout signal requires a two-candle confirmation: the first candle must close beyond the level, and the second candle must maintain that position (high remains below support for shorts, or low remains above resistance for longs).

The MTF functionality is handled via request.security, allowing the script to evaluate these conditions on higher timeframes while maintaining the visual output on the current chart. This helps in identifying whether a lower-timeframe breakout has broader significance on higher-timeframe structures.

Settings

Settings

• Width: Sets the line thickness for the plotted support and resistance levels.
• Date Input: A string input for identifying specific ticker or date context.

Timeframes

• Timeframe 1-4: Selectable dropdowns to define the higher timeframes (5, 15, 30, 60 minutes) used for multi-timeframe analysis.

A+/B+/C+ Levels

• Color Input: Allows users to set the default (inactive) color for each specific price level.
• Price Input: The specific horizontal price level to be monitored for breakouts and retests. Multiple groups (A+, B+, C+) are provided to organize various key levels.

FAQ

How do I use MTF Breakout/Retest?

Simply input your desired price levels in the settings menu and select the higher timeframes you wish to monitor. The indicator will plot these levels and provide color-coded labels indicating breakout status.

What do the colors mean?

Green indicates a confirmed long breakout, red indicates a confirmed short breakout, and the user-defined default color (blue by default) indicates the level is currently inactive or has been retested.

How can I access this tool?

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