Bullish Breaker

5 godzin temu

Indicator: Bullish Breaker
Overview

The "Bullish Breaker" is an indicator designed to identify significant bullish candles that meet specific criteria, providing a visual framework for high-probability pullback entry points. This tool is ideal for traders looking to capture long entries with calculated risk and reward targets on a 5-minute timeframe.

Key Features

1. Highlighted Bullish Candles: Identifies large bullish candles that close in the top specified percentage of their range, close higher than the highs of the previous two candles, and exceed an average body size threshold.
2. Customizable Levels: Draws key Fibonacci retracement levels (50% and 61.8%) from the high of the highlighted candle to its low, creating a shaded zone that serves as an optimal pullback entry area.
3. Stop Loss and Dollar Risk Calculation: Plots a stop loss line below the low of the highlighted candle with customizable offset in ticks and displays the dollar value of potential risk for quick decision-making.
4.Alerts: Sends an alert when a highlighted bullish candle is formed, so you can stay updated without constantly watching the chart.

How to Use the Bullish Breaker on a 5-Minute Chart

1. Identify a Setup: Wait for a highlighted bullish candle to close. This candle meets strict conditions for size, close position, and recent highs, making it a strong potential reversal or continuation point.
2. Look for Pullback Entries: Once a highlighted candle forms, observe the next 1–2 candles. If price pulls back into the shaded zone (between the 50% , 61.8% and Fvg levels of the highlighted candle), this provides an opportunity for a long entry.
3. Set Your Targets and Stop Loss:
Target: Aim for the high of the highlighted candle or set a 2-1 risk-reward ratio.
Stop Loss: Use the stop loss line, which is plotted below the low of the highlighted candle. This line is adjusted based on tick size and can be customized to match your risk tolerance.

Suggested Confluences for Higher Probability Trades

For best results, confirm that:
1. Price is above the 21 EMA on a 15-minute chart: This suggests a favorable trend in the medium timeframe.
2. Price is above VWAP: This indicator is most effective when price is generally trending higher or bouncing off a recognized support zone. However, if price is bouncing off a support level, trades may still be valid even if VWAP and ema conditions aren't met.

Customization Options

1. Adjustable color settings for the 61.8% and 50% lines, FVG label, shaded area, and highlighted candle for easy chart visibility.
2. Configurable dollar value per tick to display risk in monetary terms, making it suitable for different markets.

Disclaimer

As with any indicator, the Bullish Breaker should be used in conjunction with other technical analysis tools and a well-defined trading plan. Ensure that you understand and properly manage risk on every trade.