Breakout Strategy with Dynamic SL Label

Description:

This script identifies breakout trading opportunities using adaptive support and resistance levels, adjusted dynamically based on market volatility. A trade signal is generated only when a breakout candle is followed by a confirming close in the same direction. The signal is displayed on the chart as a labeled marker that includes a suggested stop-loss level based on the highest high or lowest low of the past 10 bars, ensuring structure-aware risk management.

🧩 How it Works:

Adaptive S/R Zones: Based on volatility-normalized swing highs/lows using ATR. These zones automatically adjust to changing market conditions.

Confirmation Logic: Trade signals only appear after the second candle confirms the breakout, helping reduce false signals.

Single Signal Rule: Only one buy or sell label is printed per breakout level, avoiding repeated triggers.

Embedded Stop Loss in Label: SL value is calculated from the 10-bar high (for shorts) or low (for longs) and included in the signal label.

⚙️ User Inputs Explained:

Base Swing Strength: Controls the pivot sensitivity; higher values detect stronger reversal points.

Line Duration: Number of bars that horizontal S/R levels remain visible.

ATR Period: Length used to calculate volatility for adaptive S/R logic.

Volatility Sensitivity: Adjusts how responsive the S/R zone strength is to volatility. Higher = more responsive.

Stop-Loss Lookback (Bars): Defines the number of candles to reference when calculating SL from high/low structure.

Max Lines Stored: Controls chart clutter by limiting how many S/R zones are kept active.

🟩 Ideal for:

Breakout traders who value clean structure, confirmation, and built-in risk logic.

Scalpers and swing traders looking for adaptive, low-latency signals without repainting.

Chartists who want minimal indicators but maximum signal clarity.