Breakout line
Jul 25, 2019
The Breakout line indicator provides a dynamic pivot level based on higher timeframe data to help traders identify potential breakout and breakdown zones. It serves as a simplified reference point for trend continuation or reversal by calculating the midpoint of the previous period's price action.
Usage
The indicator is primarily used to identify support and resistance levels derived from higher timeframes. When price trades above the calculated line, it can signal a bullish bias or a breakout scenario. Conversely, when price trades below the line, it can indicate a bearish bias or a breakdown.
Users can look for:
- Bullish Breakouts: A price cross above the breakout level on the current chart timeframe.
- Bearish Breakdowns: A price cross below the breakout level on the current chart timeframe.
Details
The script functions by fetching the previous candle's open and close prices from a user-defined higher timeframe (HTF) using the request.security function. It then calculates the arithmetic mean of these two values to plot a single "Breakout" line on the chart. This method emphasizes the "body" of the previous higher timeframe candle, representing the core value area of that period rather than the extremes (high/low).
Settings
- Close Time Frame: Determines the higher timeframe from which the open and close data is retrieved. This must be set to a timeframe higher than the current chart for meaningful results (e.g., Daily timeframe data while viewing a 1-hour chart).
FAQ
How do I use the Breakout line for alerts?
The indicator includes built-in alert conditions that trigger when the price crosses over or under the breakout level. You can set these up via the TradingView alerts menu.
Why is the line horizontal?
The line remains horizontal for the duration of the selected "Close Time Frame" because it is based on the completed data of the previous period. It only shifts when a new candle closes on the higher timeframe.
How can I access this script?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
Trading & investing are risky and many will lose money in connection with trading and investing activities. All content on this site is not intended to, and should not be, construed as financial advice. Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Past performance does not guarantee future results.
Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, including, but not limited to, lack of liquidity. Simulated trading programs in general are designed with the benefit of hindsight, and are based on historical information. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
As a provider of technical analysis tools and strategies, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole based on any content, tool, or platform feature we provide.
Charts used on this site are by TradingView in which the majority of our technical indicators are built on. TradingView® is a registered trademark of TradingView, Inc. www.TradingView.com TradingView® has no affiliation with the owner, developer, or provider of the Services described herein.
Market data is provided by CBOE, CME Group, BarChart, Massive, CoinAPI. Select U.S. equities data is provided through Massive. CBOE BZX real-time U.S. equities data is licensed from CBOE and provided through BarChart. Real-time futures data is licensed from CME Group and provided through BarChart. Select cryptocurrency data, including major coins, is provided through CoinAPI. All data is provided “as is” and should be verified independently for trading purposes.
This does not represent our full Disclaimer. Please read our full disclaimer.
© 2026 LuxAlgo Global, LLC.