Trendline with break

What Is It?

Trendlines with Breaks is an auto-drawn trendline indicator that detects swing pivots, draws dynamic upper/lower trendlines, and fires breakout signals when price closes beyond those lines. No more manually drawing and adjusting trendlines — the indicator does it systematically.

Core Settings

Recommended Presets

• Scalping (M5–M15): Length 7–10, Mult 0.8, ATR
• Intraday (M30–H1): Length 14, Mult 1.0, ATR
• Swing (H4–D1): Length 20–30, Mult 1.2, ATR or StDev

How to Read the Indicator

Teal line (Upper): Resistance trendline anchored from the last swing high, sloping downward.

Red line (Lower): Support trendline anchored from the last swing low, sloping upward.

Teal arrow (▲): Bullish breakout — price closed above the upper trendline.

Red arrow (▼): Bearish breakout — price closed below the lower trendline.

Key behavior: Only one signal per trendline segment is fired. After a breakout arrow prints, the indicator waits for a new pivot to reset before it can signal again. This prevents signal spam.

Trading Strategies

Strategy 1: Breakout Momentum

The simplest approach — trade in the direction of the breakout.

Long Entry:

• Teal ▲ arrow appears (close above upper trendline)
• Enter on the next candle open
• SL below the breakout candle low (or below the lower trendline)
• TP: 1.5–2× risk, or trail using the lower trendline

Short Entry:

• Red ▼ arrow appears (close below lower trendline)
• Enter on the next candle open
• SL above the breakout candle high (or above the upper trendline)
• TP: 1.5–2× risk, or trail using the upper trendline

Filter: Skip signals that occur inside ranging/choppy markets. Use ADX > 20 or volume confirmation.

Strategy 2: Trendline Bounce (Mean Reversion)

Use the trendlines as dynamic support/resistance for pullback entries.

• In an uptrend, wait for price to pull back to the lower (red) trendline without triggering a break → go long
• In a downtrend, wait for price to rally into the upper (teal) trendline without triggering a break → go short
• Confirmation: bullish/bearish engulfing candle or pin bar at the trendline

Strategy 3: Break + Retest

The highest-probability setup:

1. Wait for a breakout arrow (▲ or ▼)
2. Do NOT enter immediately
3. Wait for price to retest the broken trendline from the other side
4. Enter when the retest holds (rejection candle pattern)
5. SL beyond the retest wick, TP 2–3× risk

Recommended Toolkit Combination

TWB works best as part of a complete trading workflow. Here's a suggested stack:

1. Confirmation Indicators

• RSI (14) — Filter breakouts: only take long breaks when RSI > 50, short breaks when RSI < 50. Avoid signals in overbought/oversold extremes (possible false breaks).
• Volume Profile / Volume Indicator — Validate breakouts with above-average volume. Low-volume breaks are more likely to fail.
• 200 EMA — Macro trend filter. Only take longs above, shorts below.

2. Execution Tools

• One-Click Trade Panel — Essential for scalping and intraday. When a breakout arrow prints, you need fast execution. A one-click panel with preset lot sizes eliminates hesitation.
• TP/SL Manager (Partial Close) — Set automatic partial take-profit (e.g., close 50% at 1:1 R:R, trail the rest). The trailing portion can follow the TWB trendline.
• Risk Calculator / Lot Size Tool — Input your SL distance (from entry to the opposite trendline) and it auto-calculates position size for your risk % per trade.

3. Trade Management

• Trailing Stop EA — Set it to trail your stop along the TWB trendline. As the trendline moves, your stop follows.
• Session Indicator — Mark London/NY session boundaries. Breakout signals during session opens carry more weight than off-hours signals.
• Alert Manager — TWB fires signals visually, but pairing with an alert system (push/email/Telegram) means you never miss a setup.

4. Analysis Add-ons

• Multi-Timeframe Dashboard — Check if TWB breakout direction aligns across M15 + H1 + H4. Aligned signals = higher conviction.
• Economic Calendar Panel — Avoid trading breakouts 15 min before/after high-impact news releases.

Quick Rules Cheat Sheet

✅ DO:

• Wait for candle close to confirm breakout (the arrow only prints on close)
• Use higher timeframe trend as directional filter
• Set Backpaint OFF for live trading (no repaint)
• Increase Length on higher timeframes
• Combine with volume for breakout validation

❌ DON'T:

• Trade every single arrow — filter for quality
• Use very low Length (< 5) on high timeframes — too noisy
• Ignore the macro trend — breakouts against the trend fail more often
• Enter without a stop-loss — the opposite trendline is your natural SL level
• Over-leverage on the first breakout — wait for retest if unsure

Example Workflow (Step by Step)

1. Chart Setup: TWB (Length 14, Mult 1.0, ATR, Backpaint OFF) + 200 EMA + RSI(14) + Volume
2. Bias: Price above 200 EMA → look for longs only. Below → shorts only.
3. Signal: Teal ▲ arrow prints. RSI > 50. Volume above 20-period average. ✓
4. Entry: Market buy on next candle open via One-Click Panel
5. SL: Below the red (lower) trendline or breakout candle low
6. TP1: 1:1 R:R → close 50% (TP/SL Manager auto-handles)
7. TP2: Trail remaining position using the lower trendline (Trailing Stop EA)
8. Exit: Either TP2 hit or red ▼ arrow prints (trend reversal)

Final Notes

Trendlines with Breaks removes subjectivity from trendline trading. The indicator's strength is systematic pivot detection + clean breakout signals. But like any indicator, it's not a standalone system — the recommended toolkit above turns it from a signal generator into a complete trading workflow.

Start on demo. Backtest at least 100 signals on your preferred timeframe before going live. Track your win rate on breakout vs. retest entries separately — most traders find the retest strategy more consistent.

Settings are starting points — optimize for your instrument and timeframe.