Strong Breakouts MTF

The Strong Breakouts MTF indicator identifies and power-ranks high-probability breakout opportunities by analyzing historical pivot structures. It filters for quality, calculates a 0-10 strength score for every breakout based on zone tightness, candle momentum, and proximity to the breakout level, and presents all data on the chart and in a comprehensive multi-timeframe dashboard.

Usage

The indicator can be used to identify significant market turning points and the resulting breakout zones. Traders can focus on high-strength breakouts (typically rated 7/10 or higher) which often indicate a higher probability of follow-through.

• Power-Ranking System: Every breakout is assigned a score from 0-10 based on a weighted algorithm assessing zone structure, candle characteristics, and volatility.
• Visual Hierarchy: Breakout zones are color-coded based on their strength; darker and more prominent colors signify higher-quality setups.
• MTF Dashboard: Provides a market overview across 7 timeframes (M1, M5, M15, M30, H1, H4, D1), displaying the latest signals, entry levels, stop loss (SL), and take profit (TP) targets.
• Quality Control: Users can set a minimum strength threshold to filter out low-probability noise.

Details

The script utilizes a stateful array-based engine to track pivot highs and lows over a user-defined lookback period. It identifies "zones" where multiple pivots align, signifying strong historical support or resistance. When a breakout occurs, the algorithm assesses several factors to determine the strength score:

• Pivot Tests: The number of times a level was tested before the breakout.
• Zone Age: How long the structure has been relevant.
• Momentum: Candle body ratio and momentum compared to previous bars.
• Volume & Volatility: Volume relative to its moving average and the breakout candle's range relative to the ATR.

Settings

Core Algorithm

• Pivot Period: Defines the lookback for identifying pivot highs and lows.
• Max Zone History (bars): The maximum number of bars to look back for valid breakout zones.
• Minimum Pivot Tests: The required number of pivot touches to validate a zone.

Zone Thickness

• ADR Period for Zone Size: The period used to calculate the Average Daily Range for zone scaling.
• Zone Thickness (% of ADR): Determines how wide the detected breakout zones are based on volatility.

Strength Filter & Display

• Minimum Strength to Show: Filters out signals below a specific power-ranking score.
• Show MTF Dashboard: Toggles the visibility of the multi-timeframe summary table.

Stop Loss & Take Profit

• Show SL / TP Levels: Toggles the visual representation of trade targets on the chart.
• SL/TP % of ADR: Adjusts the distance of the stop loss and take profit levels relative to current volatility.

FAQ

How do I use the Strength Score?

The score quantifies breakout quality. Generally, scores above 7 are considered high-conviction, while lower scores might suggest weaker momentum or less significant structural breakouts.

Can I set up alerts for specific timeframes?

Yes, the script supports comprehensive alerts. You can configure a single alert function call that triggers whenever a bullish or bearish breakout meets your minimum strength criteria.

How do I access Strong Breakouts MTF?

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