Pattern Trade Levels
Pattern Trade Levels
Plots the key levels for a chart-pattern breakout from two inputs: the breakout boundary and the pattern low. Enter them and the script draws the confirmation level, the measured-move target and your stop, plus a small R:R table in the corner. Use it to check whether a setup is worth taking before the breakout triggers.
What it draws
- Boundary: the resistance line you drew.
- Confirm: the boundary plus a buffer (3% by default, the Edwards & Magee rule). A daily close above it confirms the breakout.
- Target: the measured move, either log (B × B / L) or linear (B + (B − L)).
- Stops. Three options, and the one in use is drawn thicker and marked "USED":
- ATR (the default): boundary − k × ATR20. ATR20 is a simple 20-bar average of true range. It's frozen on the date you set, so the stop doesn't drift each day.
- Percent: boundary − 3%.
- Structural: any level you type in, such as the low of the last full day inside the pattern.
The table
Entry, target (% away), stop (% away), R:R (green at 2R or better), the ATR20 used, the stop's distance from the boundary in ATRs and %, and how far price is from the confirmation level.
Alerts
- Confirm breakout: a close crosses above the confirmation level.
- Boundary touch: price crosses above the boundary.
- Stop touched: price trades below the selected stop.
How to use it
1. Draw your pattern and read off the boundary (B) and the pattern low (L).
2. Set the ATR as-of date to your breakout or entry day.
3. Pick an entry basis for the R:R (the confirmation level, the boundary, or the current price) and check that the trade clears your minimum R:R.
4. Size from the stop, e.g. shares = dollar risk ÷ (entry − stop).
Notes
- The stop is a starting point, not a recommendation. Stops about 0.75 to 1.25 ATR below the boundary performed about the same in my own testing. Choose one that suits the instrument.
- Levels assume a horizontal boundary. For sloped patterns, enter the level where the breakout actually happens.
- This is an indicator, not a strategy. It doesn't take trades or backtest anything.
- For education only. Not financial advice.
Plots the key levels for a chart-pattern breakout from two inputs: the breakout boundary and the pattern low. Enter them and the script draws the confirmation level, the measured-move target and your stop, plus a small R:R table in the corner. Use it to check whether a setup is worth taking before the breakout triggers.
What it draws
- Boundary: the resistance line you drew.
- Confirm: the boundary plus a buffer (3% by default, the Edwards & Magee rule). A daily close above it confirms the breakout.
- Target: the measured move, either log (B × B / L) or linear (B + (B − L)).
- Stops. Three options, and the one in use is drawn thicker and marked "USED":
- ATR (the default): boundary − k × ATR20. ATR20 is a simple 20-bar average of true range. It's frozen on the date you set, so the stop doesn't drift each day.
- Percent: boundary − 3%.
- Structural: any level you type in, such as the low of the last full day inside the pattern.
The table
Entry, target (% away), stop (% away), R:R (green at 2R or better), the ATR20 used, the stop's distance from the boundary in ATRs and %, and how far price is from the confirmation level.
Alerts
- Confirm breakout: a close crosses above the confirmation level.
- Boundary touch: price crosses above the boundary.
- Stop touched: price trades below the selected stop.
How to use it
1. Draw your pattern and read off the boundary (B) and the pattern low (L).
2. Set the ATR as-of date to your breakout or entry day.
3. Pick an entry basis for the R:R (the confirmation level, the boundary, or the current price) and check that the trade clears your minimum R:R.
4. Size from the stop, e.g. shares = dollar risk ÷ (entry − stop).
Notes
- The stop is a starting point, not a recommendation. Stops about 0.75 to 1.25 ATR below the boundary performed about the same in my own testing. Choose one that suits the instrument.
- Levels assume a horizontal boundary. For sloped patterns, enter the level where the breakout actually happens.
- This is an indicator, not a strategy. It doesn't take trades or backtest anything.
- For education only. Not financial advice.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.