Price breakout and reversal [TCS] | PA

The Price breakout and reversal [TCS] | PA indicator provides a comprehensive framework for identifying significant price structural shifts and potential trend changes using pivot-based levels and a dynamic fair value line.

Usage

The indicator is primarily used to identify trend continuation and exhaustion points through three main signal types:

• Breakouts: Represented by 'B' (Bullish) and 'S' (Bearish) labels. These occur when the price closes beyond the high or low pivots established within the lookback period, suggesting momentum in the direction of the break.
• Fair Value Breaks: Indicated by circles on the chart. These signal when the price crosses the midpoint between the current high and low pivots, often used to identify early trend shifts or a return to the mean.
• Reversals: Represented by 'R+' (Bullish Reversal) and 'R-' (Bearish Reversal) diamonds. These patterns are filtered using Bollinger Bands to identify exhaustion near pivot extremes, signaling potential counter-trend opportunities.

Additionally, the indicator includes a "Risk Label" feature that calculates position sizes based on user-defined account risk, helping traders manage exposure for long and short entries relative to the pivot levels.

Details

The tool utilizes several technical components to generate signals:

• Pivots: The script identifies high and low peaks over a specific lookback period to establish support and resistance boundaries.
• Fair Value: This is calculated as the arithmetic mean of the high and low pivots, acting as a dynamic balance point for price action.
• Filtering: Reversal signals are strictly filtered. A bullish reversal requires price to interact with the low pivot while simultaneously crossing the lower Bollinger Band, ensuring the signal occurs during a period of perceived oversold conditions.

Settings

General Settings

• SHOW BREAKS: Toggles the display of standard pivot breakout signals.
• SHOW REVERSALS: Toggles the display of reversal signals filtered by volatility.
• SHOW FAIR VALUE BREAKS: Toggles signals occurring at the fair value midpoint.
• LOOKBACK: Determines the number of bars used to calculate high and low pivots.

Account Risk - Crypto

• SHOW RISK: Toggles the visibility of the position sizing label.
• ACCOUNT RISK %: The percentage of the total account to risk per trade.
• ACCOUNT AMOUNT: The total value of the trading account.
• BROKER FEES ENTRY/EXIT %: Parameters to account for commission costs in the quantity calculation.

FAQ

How do I access Price breakout and reversal [TCS] | PA?

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

What is the "Fair Value" line?

The fair value line is the midpoint between the recent high and low pivots, representing a short-term equilibrium price.

Can I set up notifications for these signals?

Yes, the script includes built-in alert conditions for all breakout and reversal types, which can be configured through the TradingView alerts menu.