The Breakout indicator I wrote is based on Dow theory, which states that a higher peak than the previous peak and a higher low than the previous low signal the beginning of an uptrend.

The peak I refer to as a swing; in an uptrend, it is a swing high, which must satisfy that it is a peak, higher than the surrounding area. Specifically, I am setting it to be higher than the 4 previous candles and the 4 subsequent candles to form a shape like a mountain peak. When the price at the base of the mountain rises and closes above the swing high peak, it is essentially the Dow theoretical model, an immutable model in trading for over a hundred years now.

When the price breaks out, a small green arrow will appear on that breakout candle. The stop-loss is the low of the nearby candle cluster, and the entry is around the swing high that has been breached. Everything is clear. As for how to use it, you can adapt it, just like Dow theory is the source of many methods in the market.

The post sharing about the indicator is in the previous article: