Pure Price Action Breakout with 1:5 RR

12 Feb

Description of the Price Action Trading Script (Pine Script v6)
Overview
This script is a pure price action-based breakout strategy designed for TradingView. It identifies key breakout levels and executes long and short trades based on market structure. The strategy ensures a minimum risk-to-reward ratio (RR) of 1:5, aiming for high profitability with well-defined stop-loss and take-profit levels.

How the Script Works
1️⃣ Breakout Identification
The script uses a lookback period to find the highest high and lowest low over the last n bars.
A bullish breakout occurs when the price closes above the previous highest high.
A bearish breakout happens when the price closes below the previous lowest low.
2️⃣ Entry & Exit Strategy
Long Entry: If a bullish breakout is detected, the script enters a long position.
Short Entry: If a bearish breakout is detected, the script enters a short position.
The stop-loss is placed at the recent swing low (for long trades) or recent swing high (for short trades).
The target price is calculated based on a risk-to-reward ratio of 1:5, ensuring profitable trades.
3️⃣ Risk Management
The stop-loss prevents excessive losses by exiting trades when the market moves unfavorably.
The strategy ensures that each trade has a reward potential at least 5 times the risk.
Positions are executed based on price action only, without indicators like moving averages or RSI.
4️⃣ Visual Representation
The script plots breakout levels to help traders visualize potential trade setups.
Entry points, stop-loss, and take-profit levels are labeled on the chart for easy tracking.
Key Features & Benefits
✔ Pure Price Action – No lagging indicators, only real-time price movements.
✔ High Risk-to-Reward Ratio (1:5) – Ensures high-profit potential trades.
✔ Real-time Entry & Exit Signals – Provides accurate trade setups.
✔ Dynamic Stop-loss Calculation – Adjusts based on recent market structure.
✔ Customizable Parameters – Lookback periods and risk ratios can be modified.

12 Feb

Nota Keluaran

Trading with Filtered Price Action Breakout Strategy
Introduction
The Filtered Price Action Breakout Strategy is designed to identify high-probability trading setups based on price action and momentum. It provides clear entry, exit, and stop-loss levels to help traders execute trades with confidence.

How It Works
The strategy detects breakout points based on price action filters.
It marks long and short entry signals when market conditions align with the trading plan.
Stop-loss levels are dynamically set to minimize risk.
Target levels are calculated based on momentum and price structure.
Key Features
✅ Clear Entry & Exit Signals – Shows precise trade execution points.
✅ Defined Stop-Loss & Target – Helps manage risk and lock in profits.
✅ Works on Multiple Timeframes – Can be used for scalping, intraday, or swing trading.
✅ Filters Out Noise – Focuses only on high-probability trades to reduce unnecessary signals.

Best Practices
✔️ Trade only in trending markets to maximize breakout potential.
✔️ Avoid trading during high-impact news events.
✔️ Use proper position sizing and risk management techniques.
✔️ Follow a disciplined trading plan and avoid overtrading.

Conclusion
This strategy simplifies price action trading by providing structured breakout signals with logical stop-loss and target levels. By following a disciplined approach, traders can effectively capitalize on momentum moves while maintaining proper risk management.

Happy Trading! 🚀

kelmarin

Nota Keluaran

BTC Day trading