Candle Breakout Strategy

The Candle Breakout Strategy indicator identifies a user-specified candle based on UTC time to establish a trading range and executes trades upon a confirmed breakout. This tool simplifies intraday breakout trading by automating range detection and trade execution with integrated risk management.

Usage

The Candle Breakout Strategy is used to capture price volatility following specific market events or session openings. Users define a "target candle" by setting a specific hour and minute in UTC. Once this candle forms, the script highlights its high and low as a boundary.

• Long Entry: Triggered when price closes above the range high.
• Short Entry: Triggered when price closes below the range low.
• Exit Logic: The strategy automatically places a stop-loss at the opposite side of the breakout range. The take-profit level is determined by the Risk:Reward Ratio setting, calculating the distance between the entry and stop-loss and multiplying it by the user's preference.

Details

The script operates on a state-based logic. Once the target candle is identified, it enters a "waiting" state, extending a visual box and dashed lines across the chart. This range remains active until a breakout occurs on a bar close. To maintain a clean interface, the script can be configured to only show the most recent breakout range. It also features an information table that displays the current target time, range status, and calculated levels in real-time.

Settings

• Target Hour (UTC): Defines the hour (0-23) of the candle used to set the breakout range.
• Target Minute: Defines the minute (0-59) of the candle used to set the breakout range.
• Risk:Reward Ratio: Sets the multiplier for the take-profit target relative to the initial risk (the range width).
• Enable Alerts: Toggles the execution of automated alerts containing entry price, stop-loss, and take-profit details.

FAQ

How do I access Candle Breakout Strategy?

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

Which timeframe is best for this strategy?

While the script works on any timeframe, it is most effective on intraday charts (1m to 60m) where specific session open candles can be precisely targeted.

Can I change the stop-loss logic?

By default, the strategy uses the opposite side of the breakout candle's range. This provides a structural buffer based on the volatility of the target time.