[blackcat] L3 Breakout Indicator

27 Mar

OVERVIEW
This script provides a breakout detection system ([blackcat] L3 Breakout Indicator) analyzing price momentum across timeframes. It identifies market entry/exit zones through dynamically scaled thresholds and visual feedback layers.

FEATURES

Dual momentum visualization: • Price Momentum Ratio Plot (yellow) • Filtered Signal Value Plot (fuchsia)
Adjustable trade boundaries: ▪ Lower Threshold (default: 0.5) ▪ Upper Threshold (default: 2.9) ▪ Central boundary (fixed at 2.0)
Real-time visual feedback: ☀ Buy zone highlights (lime) on momentum crossover ⚠ Sell zone highlights (red) on momentum cross-under ♦ Dynamic convergence area between plots (colored gradient)
HOW TO USE

Interpretation Flow

Monitor momentum plots relative to threshold lines
Actionable signals occur when momentum crosses thresholds
Persistent movement above/below central boundary indicates trend continuation
Key Zones
• Below 0.5: Potential buying opportunity zone
• Above 2.0: Cautionary selling region
• Between 0.5-2.0: Neutral consolidation phase

Optimization Tips

Adjust thresholds based on asset volatility
Combine with volume metrics for confirmation
Backtest parameters using historical data

LIMITATIONS
• Lag induced by 4-period EMA smoothing
• Historical dependency in calculating extremes (lowest(100)/highest(250))
• No built-in risk management protocols (stop loss take profit)
• Performance variability during sideways markets

28 Nis

Sürüm Notları

📈 [blackcat] L3 Breakout Indicator is an advanced TradingView indicator designed to identify potential breakout points in market momentum. This script utilizes custom calculations and visual elements to help traders spot key levels where significant price movements may occur.

FEATURES

Custom function for retrieving first non-NaN values
User-adjustable thresholds for signal boundaries
Calculation of price momentum ratio
Dynamic plotting of momentum ratios and filtered signals
Visual representation of buy/sell zones
Clear labeling of buy/sell signals
Alerts for threshold crossings
HOW TO USE

Add the script to your TradingView chart.
Adjust input variables in the settings panel:
Lower Threshold
Upper Threshold
Observe the generated plots and signals on your chart:
Yellow line represents Price Momentum
Fuchsia line shows Filtered Signal
Dotted lines indicate threshold levels
Color-coded background for buy/sell zones
"BUY" and "SELL" labels appear at signal points
LIMITATIONS

Performance may vary across different markets and timeframes
False signals can occur in choppy or ranging markets
Requires proper understanding of momentum indicators
NOTES

The script calculates momentum based on recent lows and highs
Filters are applied to smooth out the momentum ratio
Labels are dynamically created and updated as signals occur
THANKS

Special thanks to the TradingView community for their valuable feedback and contributions to this indicator's development.