Daily HL Breakout Continuation

Daily HL Breakout Continuation

Description

The Daily HL Breakout Continuation indicator provides a clear framework for analyzing breakout behavior by plotting reference levels for breakouts and pauses. Instead of reacting to every breakout, it focuses on structured setups—identifying when price retraces, stabilizes, and then resumes its breakout direction.

By tracking these breakout-pause-continuation sequences, traders can gain insights into how price behaves around daily highs and lows. This helps in understanding whether a breakout is gaining strength or losing momentum, potentially leading to trend continuation or failure.

Since not all breakouts lead to strong moves, it is crucial to backtest this indicator and combine it with volume, trend, or momentum filters to refine trade execution.

Key Features

  • Structured Breakout Analysis – Detects the sequence of load, breakout, pause, and potential continuation.
  • Customizable Breakout and Pause Parameters – Users can set breakout and pause durations for flexibility.
  • Dynamic Reference Levels – Plots breakout and pause high/low levels for structured trade analysis.
  • Intraday Application – Can be used on various intraday timeframes to study breakout behavior.

Tips for Implementation

  • Backtest Before Trading – Analyze the indicator’s behavior across different market conditions before using it in live trading.
  • Combine with Other Indicators – Use with momentum indicators (e.g., RSI, MACD) or volume tools to assess breakout strength.
  • Adjust Pause and Breakout Bars – Optimize the settings based on the instrument and timeframe.
  • Identify Trending Conditions – Strong trends may result in more valid breakouts, while range-bound markets may lead to more failures.
  • Use as a Research Tool – Instead of treating it as a direct entry/exit tool, use it to study breakout structures and refine trading strategies.

Parameters

Load Period

  • Type: int
  • Description: The number of bars without a new high or low before a breakout setup can occur.
  • Default Value: 30
  • Valid Values: Any positive integer greater than 0.

Breakout Min Bars

  • Type: int
  • Description: The minimum number of bars required for a breakout attempt before a pause.
  • Default Value: 1
  • Valid Values: Any positive integer greater than 0.

Breakout Max Bars

  • Type: int
  • Description: The maximum number of bars allowed for a breakout attempt before a pause.
  • Default Value: 3
  • Valid Values: Any positive integer greater than Breakout Min Bars.

Min Pause Bars

  • Type: int
  • Description: The minimum number of bars required for a pause before the continuation move.
  • Default Value: 1
  • Valid Values: Any positive integer greater than 0.

Max Pause Bars

  • Type: int
  • Description: The maximum number of bars allowed for a pause before the breakout continuation move.
  • Default Value: 5
  • Valid Values: Any positive integer greater than Min Pause Bars.

Plot Offset (Ticks)

  • Type: int
  • Description: Represents the distance in ticks between the plotted signal and the bar high/low, improving visualization.
  • Default Value: 5
  • Valid Values: Any positive integer greater than 0.

Plots

IndicatorSignalUp

  • Type: Plot
  • Style: Triangle Up
  • Color: DeepSkyBlue
  • Description: Marks where an upward breakout continuation occurs after the pause period.

SignalUpUpperLevel

  • Type: Plot
  • Style: Hash
  • Color: DeepSkyBlue
  • Description: Represents the breakout high level before the pause, providing a reference for potential breakouts.

SignalUpLowerLevel

  • Type: Plot
  • Style: Hash
  • Color: DeepSkyBlue
  • Description: Represents the pause low level, offering insight into the structure of a potential upward breakout.

IndicatorSignalDown

  • Type: Plot
  • Style: Triangle Down
  • Color: DeepSkyBlue
  • Description: Marks where a downward breakout continuation occurs after the pause period.

SignalDownUpperLevel

  • Type: Plot
  • Style: Hash
  • Color: DeepSkyBlue
  • Description: Represents the pause high level, providing a reference for potential downward breakouts.

SignalDownLowerLevel

  • Type: Plot
  • Style: Hash
  • Color: DeepSkyBlue
  • Description: Represents the breakout low level before the pause, offering insight into the structure of a potential downward breakout.