BREAKOUT PATTERN SETUP Trading Guide

The Breakout Pattern Setup scans for converging channel structures, waits for a confirmed breakout, and projects trade management levels. It combines pivot geometry, ATR width, volume contraction, momentum confirmation, and risk-to-reward tracking into one overlay.

What does the indicator show?

• Converging Channel Boundaries: Upper and lower projected lines built from recent pivot highs and lows.
• Breakout Markers: Long and short signals when price breaks the pattern with enough confirmation.
• Trade Levels: Entry, active stop, original stop, TP1, TP2, and TP3 levels.
• Dashboard Metrics: Pattern count, breakout direction, strength, probability, volume contraction, and win-rate style statistics.

Key Settings

• Pivot Detection Length: Controls the swing points used to build channel boundaries.
• Min Touches per Boundary: Requires enough touches before a channel can be considered valid.
• Max Channel Width and Min Convergence Rate: Filter out patterns that are too wide, too old, or not converging.
• Volume Spike Mult / Volume Contraction Filter: Adds participation and compression checks before breakout approval.
• Show Trade Levels and SL Padding: Control the projected trade plan around the breakout.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, this indicator can drive complete breakout entries and exits.

1. Pattern and Breakout Events

• patternDetected - A converging channel was found and is waiting for breakout.
• channelActive - The pattern is currently active.
• longSignal and shortSignal - Confirmed bullish or bearish breakout signals.
• breakoutDir - Outputs 1 for bullish breakout, -1 for bearish breakout, and 0 otherwise.

Strategy Example: Enter Long when longSignal is true and strengthScore >= 65 to focus on higher-quality breakouts.

2. Trade Management Levels

• entryLine, stopLine, tp1Line, tp2Line, tp3Line - Live trade levels for strategy exits and filters.
• tp1HitEvent, tp2HitEvent, tp3HitEvent, stopHitEvent - Event flags when levels are reached.
• rrTp1, bullProb, convergenceRate, volContraction - Quality metrics for setup selection.

Strategy Example: After entry, close half the position when tp1HitEvent is true and close the rest if stopHitEvent is true.