Breakout Pattern Setup Wedge and Channel
- Indicators
- Version: 2.20
- Activations: 10
Most breakout tools draw random lines. This one finds real channels.
Price moves in channels, wedges, triangles, flags, and pennants. Every major breakout starts inside one of these patterns.
Breakout Pattern Setup automatically detects converging price channels using a boundary-fit algorithm — the same mathematical approach professional analysts use manually — and alerts you the moment price breaks out with strength.
No manual drawing, no guessing. Pure mathematical channel detection.
How it works
- Detects swing highs and lows automatically using a configurable pivot length
- Fits trendlines to the pivots using a boundary-fit algorithm — finds the line that best connects multiple pivot touches on each side
- Validates the channel against 5 criteria: minimum touches per boundary, convergence rate (must be narrowing), channel width vs ATR, price must be inside the channel, and volume contraction (optional)
- Draws the channel with fill on your chart in real time
- Detects breakout when price closes outside either boundary with momentum confirmation
- Draws Entry, SL, TP1, TP2, TP3 levels automatically at the breakout bar
Breakout strength scoring
Every breakout is scored automatically:
- Strong — high penetration, strong volume, body fully outside boundary, RSI confirms
- Medium — moderate breakout with some confirmation
- Weak — minimal breakout, use caution
The strength label appears on every signal so you know immediately how much conviction to trade with.
Automatic trade levels
When a breakout is detected, the indicator draws complete trade management levels:
- Entry — breakout close price
- SL — opposite channel boundary (with optional ATR buffer)
- TP1 — 1/3 of channel width projection
- TP2 — 2/3 of channel width projection
- TP3 — full channel width projection
Profit zone shown in green, loss zone shown in red. TP levels update color when hit, so you can see at a glance which targets have been reached.
Smart filters
- Volume Spike Filter — breakout must occur on above-average volume. Set multiplier to 0.5 to disable on Forex where volume data is tick-based.
- Volume Contraction Filter — requires volume to decline inside the channel before breakout, a classic institutional accumulation signature.
- Momentum Filter (RSI) — bull breakout requires RSI above 50, bear breakout requires RSI below 50. Eliminates weak counter-trend breaks.
Pattern history modes
- Last Only — shows only the most recent channel and breakout. Clean chart.
- All — keeps all historical channels and signals visible. Full audit trail.
Alerts
Built-in alerts fire automatically on: bull breakout detected, bear breakout detected, new channel pattern formed, TP1 hit, TP2 hit, TP3 hit, and stop loss hit.
Webhook/JSON format available for integration with trading bots and notification services.
Input parameters
Main Settings: Pivot Detection Length (bars each side for swing confirmation, default 5), Min Touches per Boundary (minimum pivot touches to validate trendline, default 2), Max Channel Width (lookback in bars), Convergence Rate (minimum narrowing required for valid channel).
Advanced: Touch Tolerance (ATR multiplier for pivot snap distance), Max Deviation (how far a pivot can be from the trendline), Min Channel Width (ATR minimum width).
Filters: Volume Spike Multiplier, Volume Contraction Filter on/off, Momentum Confirmation on/off.
Visual: Channel line color and width, Channel fill on/off, History mode, Label sizes.
Risk Management: SL Padding beyond boundary, Label offset in bars.
Works on all assets and timeframes
- Forex — all pairs
- Gold and Silver — XAUUSD, XAGUSD
- Crypto — BTC, ETH, and all coins
- Indices — US30, NAS100, SPX500
- Any CFD available on your broker
Works on all timeframes from M5 to Monthly. Best results on H1, H4, and Daily.
How to use
- Attach to any chart
- Wait for channel to be detected (status bar shows "Channel Active")
- Watch for breakout signal with strength label
- Enter on the breakout candle close
- Set SL at the drawn stop level
- Take partial profits at TP1 and TP2
- Let remainder run to TP3
Platform
MetaTrader 5 only. Works as an indicator — does not place trades automatically.
Built by Aurex
Breakout Pattern Setup is part of the Aurex professional toolkit — built by active traders for serious market participants.
Also available from Aurex: Elliott Wave Detector Auto MTF Analysis, Analogue Matcher – AI Pattern Match, Aurex Trade Journal.
