OPEN-SOURCE SCRIPT
Retest & Break Setup [LuxAlgo]
The Retest & Break Setup indicator identifies and tracks price action structures where price breaks a pivot level, retests it multiple times, and subsequently breaks out to confirm the trend.
🔶 USAGE
The indicator identifies "Retest & Break" patterns by monitoring pivot levels (Pivot Highs for bullish setups and Pivot Lows for bearish setups). A setup begins when a pivot is broken by price. The script then tracks whether price returns to "retest" this broken level as support or resistance.
A setup is considered "completed" once the required number of retests is met and price breaks out past the newly formed extreme established during the retest phase. For bullish setups, this means price must close above the highest high reached during the retest period. For bearish setups, price must close below the lowest low reached during the retest period.
A completed bullish setup suggests that price is likely to continue moving higher, while a bearish setup suggests a move lower. The logic behind this is often linked to liquidity; as price retests a level multiple times without breaking back through, liquidity (such as stop-loss orders) builds up just beyond the retest extremes.
When price finally breaches these levels, this concentrated liquidity can act as fuel, accelerating the breakout and confirming the new trend direction.
🔹 Parameters and Setup Sensitivity
The behavior of the indicator is highly dependent on four primary settings:
🔹 Finding Long-Term vs. Short-Term Setups
For users looking for longer-term, more significant setups, it is recommended to increase the Length (e.g., 10-20) and the Max Bars parameters (N and P) to allow for the slower price development typical of higher timeframes or major trend shifts.
Conversely, for scalping or fast-moving markets, lower values for Length and P will highlight quick "touch-and-go" patterns.
🔶 DETAILS
The indicator includes a comprehensive dashboard to help users evaluate the historical reliability of the identified structures on the current chart and timeframe.
🔹 Dashboard Metrics
🔹 Visualization
The script uses dashed lines to represent the broken pivot level being retested. Solid lines represent the "trigger" level (the extreme of the retest phase). When a setup is completed, a shaded box appears, and a "Break" label is plotted. If "Only Show Complete Setups" is disabled, invalidated setups will remain on the chart in a faded gray color for study.
🔶 SETTINGS
🔶 USAGE
The indicator identifies "Retest & Break" patterns by monitoring pivot levels (Pivot Highs for bullish setups and Pivot Lows for bearish setups). A setup begins when a pivot is broken by price. The script then tracks whether price returns to "retest" this broken level as support or resistance.
A setup is considered "completed" once the required number of retests is met and price breaks out past the newly formed extreme established during the retest phase. For bullish setups, this means price must close above the highest high reached during the retest period. For bearish setups, price must close below the lowest low reached during the retest period.
A completed bullish setup suggests that price is likely to continue moving higher, while a bearish setup suggests a move lower. The logic behind this is often linked to liquidity; as price retests a level multiple times without breaking back through, liquidity (such as stop-loss orders) builds up just beyond the retest extremes.
When price finally breaches these levels, this concentrated liquidity can act as fuel, accelerating the breakout and confirming the new trend direction.
🔹 Parameters and Setup Sensitivity
The behavior of the indicator is highly dependent on four primary settings:
- Length: Determines the significance of the initial pivot. A higher value identifies major swing points, while a lower value identifies minor intraday levels.
- Required Consecutive Retests (K): Specifies how many times price must touch the broken level without breaking back through it. Increasing this value requires more confirmation before a setup is considered valid.
- Max Bars between Retests (P): Controls the "tightness" of the retest phase. If price takes too long to return for a retest, the setup is invalidated.
- Max Bars for Break (N): Defines the window of opportunity for the final breakout. After the required retests are met, price must break the recent extreme (high for bullish, low for bearish) within this many bars.
🔹 Finding Long-Term vs. Short-Term Setups
For users looking for longer-term, more significant setups, it is recommended to increase the Length (e.g., 10-20) and the Max Bars parameters (N and P) to allow for the slower price development typical of higher timeframes or major trend shifts.
Conversely, for scalping or fast-moving markets, lower values for Length and P will highlight quick "touch-and-go" patterns.
🔶 DETAILS
The indicator includes a comprehensive dashboard to help users evaluate the historical reliability of the identified structures on the current chart and timeframe.
🔹 Dashboard Metrics
- Total: This counts the number of setups that successfully completed the initial break and all required K retests. It represents the "Potential" setups that reached the final stage.
- Completion: This tracks how many of the "Total" setups actually achieved a confirmed breakout past the retest extreme within the N bars limit.
- Win Rate: This is a predictive performance metric. For every "Completed" setup, the script records the price at the moment of breakout. After N bars have passed since that breakout, it checks if price is still above (bullish) or below (bearish) the breakout level.
🔹 Visualization
The script uses dashed lines to represent the broken pivot level being retested. Solid lines represent the "trigger" level (the extreme of the retest phase). When a setup is completed, a shaded box appears, and a "Break" label is plotted. If "Only Show Complete Setups" is disabled, invalidated setups will remain on the chart in a faded gray color for study.
🔶 SETTINGS
- Length: The lookback period used to detect Pivot Highs and Lows.
- Max Bars for Break (N): The maximum time allowed for price to break out after the final retest.
- Max Bars between Retests (P): The maximum time allowed between the initial break and the first retest, or between subsequent retests.
- Required Consecutive Retests (K): The number of successful retests required to validate the zone.
- Only Show Complete Setups: When enabled, removes setups from the chart that failed to meet the retest or breakout criteria.
- Setup Colors: Customizable colors for bullish, bearish, and invalidated patterns.
- Dashboard Settings: Options to toggle the dashboard visibility, change its position on the chart, and adjust its size.
Скрипт с открытым кодом
В истинном духе TradingView, создатель этого скрипта сделал его открытым исходным кодом, чтобы трейдеры могли проверить и убедиться в его функциональности. Браво автору! Вы можете использовать его бесплатно, но помните, что перепубликация кода подчиняется нашим Правилам поведения.
All content & scripts provided by LuxAlgo are for educational purposes only and are not financial advice.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.
Скрипт с открытым кодом
В истинном духе TradingView, создатель этого скрипта сделал его открытым исходным кодом, чтобы трейдеры могли проверить и убедиться в его функциональности. Браво автору! Вы можете использовать его бесплатно, но помните, что перепубликация кода подчиняется нашим Правилам поведения.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.