This script is a Pine Script indicator for TradingView titled **"Buy/Sell Break and Retest"**. Here's a description of its functionality:
### Purpose: The script identifies potential **buy** and **sell entry levels** based on break-and-retest patterns in the market. It works by analyzing higher timeframe data (e.g., 1-hour) and marking entries on a lower timeframe (e.g., 1-minute).
### Key Features: 1. **Configurable Timeframes**: - `Analysis Timeframe`: Used for identifying break-and-retest signals (default: 1-hour). - `Entry Timeframe`: Used for marking and plotting entries (default: 1-minute).
2. **Buy and Sell Signals**: - A **sell entry** is triggered when a bearish candle (close < open) is identified in the analysis timeframe. - A **buy entry** is triggered when a bullish candle (close > open) is identified in the analysis timeframe.
3. **Retest Logic**: - For sell signals: The retest is validated when the price breaks below the identified sell level. - For buy signals: The retest is validated when the price breaks above the identified buy level.
4. **Visual Indicators**: - Entry levels are marked with labels: - **Buy Entry**: Green labels are placed at bullish candle opens. - **Sell Entry**: Red labels are placed at bearish candle closes. - Plots the levels for easy reference: - **Sell Level**: Displayed as red circles on the chart. - **Buy Level**: Displayed as green circles on the chart.
5. **Dynamic Updates**: - Levels are cleared when invalidated by the price action.
### Use Case: This indicator helps traders spot break-and-retest opportunities by: - Allowing higher timeframe analysis to determine trend direction and key levels. - Providing actionable buy and sell entry points on lower timeframes for precision.
Let me know if you'd like further clarification or improvements!