Breakout Zones with Candle Color and Background

Breakout Zones with Candle Color and Background
Version: 1.0
Script Type: Overlay
Tags: support and resistance, breakout zones, candle coloring, trend detection, visual indicator, price action

📘 Overview
This indicator highlights key breakout zones using dynamic support and resistance levels, adding clear background shading and candle coloring to help traders visually track breakout and consolidation behavior.

Whether you're trading ranges, breakouts, or just want clearer price context, this tool simplifies decision-making by showing exactly where price is in relation to recent market structure.

🔍 Features
📏 Auto Support & Resistance
Based on a user-defined lookback period to dynamically track key S/R levels.

🧱 Customizable Zone Padding
Adds a buffer above and below the calculated S/R levels to define a breakout "zone."

🌈 Visual Highlights

Green Background: Bullish breakout above resistance

Red Background: Bearish breakdown below support

Yellow Candles: Price is inside the defined S/R range (indecision or buildup)

📈 Clean Chart Levels

Plots resistance and support lines for clear visual references

🧠 How to Use It
Identify Consolidation: Yellow candles signal the price is inside the zone—watch for potential buildup.

Breakout Alerts: When the background turns green or red, a breakout or breakdown is underway.

Confirm with Volume or Trend Tools: Use this with volume spikes, moving averages, or MACD for confirmation.

🛠️ Settings
Lookback Bars: Number of bars to calculate support and resistance.

Zone Padding% %: Adds buffer to make breakout zones more realistic.

⚠️ Disclaimer
This tool is for educational and analytical purposes. Breakouts may lead to false signals without proper confirmation. Always use risk management and do your own research before trading.