Fractal Breakout Trend Following System

█ OVERVIEW

The Fractal Breakout Trend Following System is a custom technical analysis tool designed to pinpoint significant fractal pivot points and breakout levels. By analyzing price action through configurable pivot parameters, this indicator dynamically identifies key support and resistance zones. It not only marks crucial highs and lows on the chart but also signals potential trend reversals through real-time breakout detections, helping traders capture shifts in market momentum.

█ KEY FEATURES

Fractal Pivot Detection
Utilizes user-defined left and right pivot lengths to detect local highs (pivot highs) and lows (pivot lows). This fractal-based approach ensures that only meaningful price moves are considered, effectively filtering out minor market noise.

Dynamic Line Visualization
Upon confirmation of a pivot, the system draws a dynamic line representing resistance (from pivot highs) or support (from pivot lows). These lines extend across the chart until a breakout occurs, offering a continuous visual guide to key levels.

Trend Breakout Signals
Monitors for price crossovers relative to the drawn pivot lines. A crossover above a resistance line signals a bullish breakout, while a crossunder below a support line indicates a bearish move, thus updating the prevailing trend.

Pivot Labelling
Assigns labels such as "HH", "LH", "LL", or "HL" to detected pivots based on their relative values.
It uses the following designations:

• HH (Higher High): Indicates that the current pivot high is greater than the previous pivot high, suggesting continued upward momentum.
  
• LH (Lower High): Signals that the current pivot high is lower than the previous pivot high, which may hint at a potential reversal within an uptrend.
  
• LL (Lower Low): Shows that the current pivot low is lower than the previous pivot low, confirming sustained downward pressure.
  
• HL (Higher Low): Reveals that the current pivot low is higher than the previous pivot low, potentially indicating the beginning of an upward reversal in a downtrend.
  

These labels provide traders with immediate insight into the market structure and recent price behavior.

Customizable Visual Settings
Offers various customization options:
 • Adjust pivot sensitivity via left/right pivot inputs.
 • Toggle pivot labels on or off.
 • Enable background color changes to reflect bullish or bearish trends.
 • Choose preferred colors for bullish (e.g., green) and bearish (e.g., red) signals.

█ UNDERLYING METHODOLOGY & CALCULATIONS

Fractal Pivot Calculation
The script employs a sliding window technique using configurable left and right parameters to identify local highs and lows. Detected pivot values are sanitized to ensure consistency in subsequent calculations.

Dynamic Line Plotting
When a new pivot is detected, a corresponding line is drawn from the pivot point. This line extends until the price breaks the level, at which point it is reset. This method provides a continuous reference for support and resistance.

Trend Breakout Identification
By continuously monitoring price interactions with the pivot lines, the indicator identifies breakouts. A price crossover above a resistance line suggests a bullish breakout, while a crossunder below a support line indicates a bearish shift. The current trend is updated accordingly.

Pivot Label Assignment
The system compares the current pivot with the previous one to determine if the move represents a higher high, lower high, higher low, or lower low. This classification helps traders understand the underlying market momentum.

█ HOW TO USE THE INDICATOR

1 — Apply the Indicator
 • Add the Fractal Breakout Trend Following System to your chart to begin visualizing dynamic pivot points and breakout signals.

2 — Adjust Settings for Your Market
 • Pivot Detection – Configure the left and right pivot lengths for both highs and lows to suit your desired sensitivity:
  - Use shorter lengths for more responsive signals in fast-moving markets.
  - Use longer lengths to filter out minor fluctuations in volatile conditions.
 • Visual Customization – Toggle the display of pivot labels and background color changes. Select your preferred colors for bullish and bearish trends.

3 — Interpret the Signals
 • Support & Resistance Lines – Observe the dynamically drawn lines that represent key pivot levels.
 • Pivot Labels – Look for labels like "HH", "LH", "LL", and "HL" to quickly assess market structure and trend behavior.
 • Trend Signals – Watch for price crossovers and corresponding background color shifts to gauge bullish or bearish breakouts.

4 — Integrate with Your Trading Strategy
 • Use the identified pivot points as potential support and resistance levels.
 • Combine breakout signals with other technical indicators for comprehensive trade confirmation.
 • Adjust the sensitivity settings to tailor the indicator to various instruments and market conditions.

█ CONCLUSION

The Fractal Breakout Trend Following System offers a robust framework for identifying critical fractal pivot points and potential breakout opportunities. With its dynamic line plotting, clear pivot labeling, and customizable visual settings, this indicator equips traders with actionable insights to enhance decision-making and optimize entry and exit strategies.