Breakout Levels

Breakout Levels - User Guide
Overview
The Breakout Levels indicator automatically detects and displays significant breakout candles across multiple timeframes. A breakout occurs when price makes a strong, decisive move - identified by candles with unusually large bodies relative to average volatility.
These breakout levels often act as future support/resistance zones, making them valuable reference points for trading decisions.

What is a Breakout?
A breakout is detected when a candle's body size (the distance between open and close) is significantly larger than normal. By default, the script looks for candles that are 2x the ATR (Average True Range) or larger.
Example:

If the 14-period ATR is $5, a candle with a $10+ body would qualify as a breakout
These represent strong, committed moves by the market
The script marks the high of bullish breakouts and the low of bearish breakouts


Settings Guide
Timeframes
Toggle which timeframes to monitor for breakouts:

Show Daily Breakouts - Green/Red levels from daily chart breakouts
Show 4H Breakouts - 4-hour timeframe breakouts
Show 1H Breakouts - 1-hour timeframe breakouts
Show 15M Breakouts - 15-minute timeframe breakouts

Tip: When running on a 15-minute chart, you can see breakouts from all higher timeframes simultaneously.

Lookback (How Far Back to Display)
Controls how many bars back to show levels for each timeframe:
TimeframeDefaultWhat it Means15M50 bars~12.5 hours of breakout history1H200 bars~8 days of breakout history4H250 bars~42 days of breakout historyDaily300 bars~300 days (nearly 1 year)
Why adjust this?

Increase to see more historical levels (may clutter chart)
Decrease to focus only on recent breakouts
Older levels are still stored, just not displayed


Detection Settings
Breakout Candle Size (x ATR)

Default: 2.0
Range: 1.0 to 5.0
What it does: Multiplier for what qualifies as a "big" candle

SettingSensitivityUse Case1.0-1.5Very sensitiveCatches more breakouts, but may include false moves2.0Balanced (default)Good mix of quality and quantity3.0-5.0Very selectiveOnly the most explosive moves
Recommendation: Start with 2.0 and adjust based on your market and trading style.

Visual Settings
Bullish Breakout Color

Default: Green with 60% transparency
Marks levels where price broke upward strongly

Bearish Breakout Color

Default: Red with 60% transparency
Marks levels where price broke downward strongly

Show Labels

Toggle labels on/off
Labels display: [Timeframe] BO [Price]
Example: "4H BO 150.25"
Turn OFF for cleaner charts when you just want the lines


How to Use This Indicator
1. Identify Key Breakout Zones
Breakout levels often become magnets where price returns later:

Former resistance (where price broke up) becomes future support
Former support (where price broke down) becomes future resistance

2. Look for Confluence
When multiple timeframe breakouts cluster near the same price:

15M + 1H + 4H breakouts all near $150 = strong level
More confluence = more significant level

3. Watch for Retests
After a breakout, price often returns to test that level:

Bullish breakout retest from above = potential long entry
Bearish breakout retest from below = potential short entry

4. Combine with Other Analysis
Use breakout levels alongside:

Your own support/resistance analysis
Volume profiles
Fibonacci levels
Candlestick patterns at these levels


Practical Examples
Example 1: Clean Breakout and Retest

Daily candle closes up with a huge body (2.5x ATR)
Green line drawn at the high of that candle
Price pulls back 3 days later and bounces exactly off that green line
Trade opportunity: Long entry at the retest with stop below

Example 2: Failed Breakout

4H bearish breakout draws a red line at the low
Price immediately reverses back above the level
Signal: The breakout was false - consider this a stop hunt zone

Example 3: Multi-Timeframe Confluence

Daily breakout at $100
4H breakout at $100.50
1H breakout at $99.80
Strong cluster zone: $99.80-$100.50 becomes a major decision point


Best Practices
DO:

✅ Start with default settings (2.0x ATR, default lookbacks)
✅ Use on a 15-minute chart to see all timeframes
✅ Look for price reactions at these levels before trading
✅ Combine with volume - breakouts with high volume are more reliable
✅ Turn off labels when chart gets too busy

DON'T:

❌ Treat every line as guaranteed support/resistance
❌ Set breakout multiplier too low (<1.5) - creates noise
❌ Ignore the context - check what's happening in the broader market
❌ Trade blindly at these levels without confirmation


Troubleshooting
"Too many lines on my chart"

Reduce the lookback settings
Turn off some timeframes (maybe just show Daily + 4H)
Increase the breakout multiplier to 2.5 or 3.0

"Not showing any levels"

Lower the breakout multiplier to 1.5
Increase lookback settings
Check that at least one timeframe toggle is ON
Verify the market had actual volatility during the period

"Labels are cluttering the chart"

Turn off "Show Labels" in settings
Lines will remain, labels disappear


Technical Notes

ATR Period: 14 (industry standard, not adjustable in this version)
Max Lines: 500 (Pine Script limitation)
Duplicate Filter: Levels within 0.3% of ATR are considered duplicates and filtered
Chart Type: Works on any chart timeframe, optimized for 15-minute
Asset Type: Works on stocks, forex, crypto, futures


Summary
The Breakout Levels indicator gives you a systematic way to identify where strong, committed market moves occurred. These levels often act as future decision points. Use them as reference zones to watch for price reactions, not as automatic trade signals.
Quick Start:

Add indicator to a 15-minute chart
Leave default settings (2.0x ATR)
Watch how price interacts with the levels over the next few days
Adjust sensitivity based on your observations

Happy trading! 📈