CoffeeBreaks: An Adaptive Break-out Indicator for TradingView
Are you using TradingView? Have a look at this dynamic and highly customizable break-out indicator. It’s pretty cool.
CoffeeBreaks is based on a standard break-out system, but with a dynamic break-out period. Which means that the break-out period is dependent on the market trend. E.g. a trending market will use a lower break-out period than a flat market. The market trend is measured by a separate indicator called CoffeeTrend. The logic here is that a flat market requires a larger movement to generate a break-out signal than a trending market does.
How it works
Okay, so let's start by looking at the settings of the indicator, and then I will walk you through the different settings groups. It might be a bit complicated, so don't be afraid to ask if something's unclear.
Basics
In , you just need to specify whether you're using a line chart or candlesticks. is how low the bottom needs to be before a long signal or how high the top needs to be before a short signal. is how big the break-out margin needs to be. E.g. if it's "None", every break-out is a signal. Both of the limits are based on standard deviation, so you don't have to change the limits if you're changing the time frame (Unless you want to, obviously).
CoffeeTrend
CoffeeTrend looks at the relationship between different moving averages to determine the degree of market trend. defines how far back in time to look, while defines how sensitive the CoffeeTrend indicator is to market movements. As you can see in the image below, the indicator is high when the trend is clear and low when the market are moving sideways.
Break-out Periods
There are ten different parameters, linking the CoffeeTrend indicator to different break-out periods. If is 200, it simply means that 200 will be used as the break-out period. Meaning that the highest and lowest price of the last 200 periods will form the break-out lines. If is 150, 150 will be used as break-out period when CoffeeBreak is between 10 and 20 and so forth. Although there are ten different parameters, you can use less by setting several parameters equal to each other. If both and is 150, 150 will be used whenever CoffeeTrend is below 20. As illustrated in the chart, the break-out period decreases as CoffeeTrend increases and the break-out lines are therefore moving closer together.
FAQ
Do you have questions? Look me up at Twitter or send me an email at support@coffeebreaks.io.
Do I get the actual source code, or just access to the indicators?
You'll get the source code in Pine Script, which is the language used by TradingView.
If it works so well, why sell it for €99?
This is just a tool (That can be very powerful if used correctly). There a many parameters needed to be adjusted and there are many ways in which this tool can be used. You will probably not use it in the same way I do, and the next guy buying it probably won’t use it in the same way you do. This is not a finished strategy, and you’ll have to do your own research.
Can a €99 indicator actually give me an edge?
There are tons of indicators and methods available for free, used by millions of people. It all depends on how you use them. Again, this is not finished strategy that will make you money out-of-the-box. You’ll have to do your own research and find your own methods.