OPEN-SOURCE SCRIPT
MGC Wyckoff Second Breakout V3 Candle RR
**Gold 15-Minute Wyckoff Second Breakout Strategy V3**
## Core Idea
This strategy is based on a Wyckoff-style breakout confirmation concept.
The strategy does **not** enter on the first breakout. Instead, it waits for the market to:
1. Break an isolated high or low.
2. Form a new breakout extreme.
3. Pull back or pause.
4. Break that new extreme again.
The second breakout is treated as the higher-quality confirmation signal.
---
## Timeframe
```text
Chart timeframe: 15 minutes
Market: Gold, preferably XAUUSD or MGC
Trade type: short-term breakout / intraday-to-swing
```
---
## Long Setup
### Step 1: Identify an isolated high
An isolated high is defined as a pivot high.
Default setting:
```text
Pivot Left Bars = 4
Pivot Right Bars = 2
```
This means the high must be higher than the highs of the previous 4 candles and confirmed by the following 2 candles.
This pivot high is called:
```text
H = isolated high
```
---
### Step 2: First breakout above H
A first breakout occurs when price closes above the isolated high:
```text
Close > H
```
The strategy does **not** enter here.
This first breakout only activates the setup.
---
### Step 3: Track the post-breakout high
After the first breakout, the strategy tracks the highest high made after that breakout.
This level is called:
```text
H2 = high formed after the first breakout
```
---
### Step 4: Wait for a pullback or pause
The strategy then waits for price to stop pushing higher.
A pullback/pause is detected when price closes below H2:
```text
Close < H2
```
At this point, the strategy starts waiting for a second breakout.
---
### Step 5: Second breakout above H2
If price closes above H2 within the maximum waiting window, the strategy enters long:
```text
Close > H2
```
Default waiting window:
```text
Max Bars After First Breakout = 20 bars
```
On a 15-minute chart, this is about 5 hours.
---
## Short Setup
The short setup is the mirror image of the long setup.
### Step 1: Identify an isolated low
An isolated low is defined as a pivot low:
```text
Pivot Left Bars = 4
Pivot Right Bars = 2
```
This pivot low is called:
```text
L = isolated low
```
---
### Step 2: First breakdown below L
A first breakdown occurs when price closes below the isolated low:
```text
Close < L
```
The strategy does **not** enter here.
---
### Step 3: Track the post-breakdown low
After the first breakdown, the strategy tracks the lowest low made after that breakdown.
This level is called:
```text
L2 = low formed after the first breakdown
```
---
### Step 4: Wait for a bounce or pause
The strategy waits for price to stop pushing lower.
A bounce/pause is detected when price closes above L2:
```text
Close > L2
```
---
### Step 5: Second breakdown below L2
If price closes below L2 within the maximum waiting window, the strategy enters short:
```text
Close < L2
```
---
## Stop-Loss Logic
The strategy uses a **structure-based stop-loss**.
### Long stop-loss
For long trades:
```text
Stop-loss = lowest low between the first breakout and the second breakout - 0.2 ATR
```
This means the stop is placed below the pullback structure.
---
### Short stop-loss
For short trades:
```text
Stop-loss = highest high between the first breakdown and the second breakdown + 0.2 ATR
```
This means the stop is placed above the bounce structure.
---
## Reward-to-Risk Logic
V3 uses a dynamic reward-to-risk model:
```text
Low-liquidity environment: 1R target
Normal environment: 2R target
Trend expansion environment: 3R target
```
---
## Low-Liquidity Condition
Low liquidity is approximated using small candles and narrow ranges.
The strategy checks whether recent candles are smaller than normal:
```text
Recent average candle body < long-term average candle body × 0.75
AND
Recent average candle range < long-term average candle range × 0.75
```
Default lookback:
```text
Recent lookback = 10 bars
Body average length = 50 bars
Range average length = 100 bars
```
If this condition is true, the strategy uses:
```text
Reward/Risk = 1:1
```
---
## Normal Market Condition
If the market is neither low-liquidity nor trend-expansion, the strategy uses:
```text
Reward/Risk = 2:1
```
---
## Trend Expansion Condition
Trend expansion is based on the breakout candle.
A long trade is considered trend expansion if the second breakout candle:
```text
1. Is a bullish candle
2. Has a body larger than 1.5 × average body
3. Has a total range larger than 1.0 × ATR
4. Closes near the high of the candle
```
A short trade is considered trend expansion if the second breakdown candle:
```text
1. Is a bearish candle
2. Has a body larger than 1.5 × average body
3. Has a total range larger than 1.0 × ATR
4. Closes near the low of the candle
```
If trend expansion is detected, the strategy uses:
```text
Reward/Risk = 3:1
```
---
## Trade Management
Once a trade is entered:
```text
The stop-loss is fixed at the structure stop.
The take-profit is fixed based on the selected R multiple.
The strategy does not trail the stop.
The strategy does not scale in.
The strategy does not scale out.
Only one position is allowed at a time.
```
---
## Default Parameters
```text
Pivot Left Bars: 4
Pivot Right Bars: 2
Max Bars After First Breakout: 20
ATR Length: 14
Structure Stop Buffer: 0.2 ATR
Body Average Length: 50
Range Average Length: 100
Low Liquidity Lookback: 10
Low Liquidity Multiplier: 0.75
Trend Body Expansion Multiplier: 1.5
Trend Range ATR Multiplier: 1.0
Strong Close Position: 0.30
Low Liquidity RR: 1.0
Normal RR: 2.0
Trend Expansion RR: 3.0
```
---
## Summary
In simple terms:
```text
The strategy waits for a breakout, ignores the first breakout, then trades the second breakout after a pause or pullback.
It uses structure-based stops and adjusts the profit target based on candle strength:
Small/narrow market = 1R
Normal market = 2R
Strong breakout candle = 3R
```
This makes it a **Wyckoff-inspired second-breakout momentum strategy with adaptive risk-reward targets**.
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Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.