The Chart Breaker indicator detects breakouts of the ten main chart patterns. It will help you open positions in powerful acceleration phases. It displays buy and sell signals on the price chart. It also displays price targets and safety stops. The screener provided with the indicator will allow you to find opportunities in real-time.

The Chart Breaker indicator user manual includes the following sections:

• Installing the indicator
• Launching the indicator
• Configuring the indicator
• Creating an alert system
• Backtesting a strategy
• Chart Breaker screener

Indicator installation

Before installing the Chart Breaker indicator, you must purchase a license or subscribe to the trial version. The indicator is available on the Prorealcode marketplace at this address:

https://market.prorealcode.com/product/chart-breaker

Installing the Chart Breaker indicator is quick and easy. Just follow the usual installation procedure described on this page:

https://market.prorealcode.com/how-to-install-my-product-in-prorealtime

Launching the indicator

After installing the license on your Prorealtime platform, the indicator will be available in the indicators & trading systems window in the “ProRealCode MarketPlace” section.

To access the indicators window, click on the “Price” icon located on the price chart window, then on “Add indicator…“:

To access the indicator, refer to the “ProRealCode MarketPlace” section or type “Chart Breaker” in the search bar. Double-click the “Chart Breaker” indicator to display it on the price window.

Indicator Configuration

The Chart Breaker indicator is fully configurable. You can choose the chartist figure(s) you want to see, select signal types, apply filters, set price target levels, and adapt the display.

Accessing the Control Panel

To access the indicator control panel, you need to click on the indicator tab located at the top of the price chart window and then click on “Configure”:

The indicator configuration window will open and allow you to configure it according to your wishes:

Chart Pattern Selection

The Chart Breaker indicator recognizes the ten main chart patterns:

You can select the figure(s) of your choice by checking the corresponding box:

Figure Length

You can set the figure length with the “Figure Length” parameter. You can also extend their length with the “Extension” parameter:

Signal Selection

The indicator detects four types of signals:

• Breakouts
• Validated Breakouts
• Retests
• Validated Retests

You can choose the type(s) of signals you want by checking the boxes of your choice:

Trend Filters

The indicator contains a trend filter that allows you to display the figures appearing in the trend or countertrend:

• Click on the “in the Trend” option to display the figures in the trend.
• Click on the “Reversal” option to display the figures in countertrend.

Volume Filter

You can filter the breakout signals if volumes accompany them. To do this, click on the “with Volumes” option:

Strength Filter

You can filter the breakout signals if they occur with strength. To do this, click on the “with Strength” option:

Price Target and Safety Stop

The indicator automatically calculates the price target and safety stop levels based on the technical configuration:

• You can display these levels by checking the “Take Profit” and “Stop-Loss” boxes.
• You can adjust these levels with the “TP Level” and “SL Level” parameters.

Display Setting

The indicator allows you to configure the display of figure lines and price targets:

Here are the available display options with their meaning:

Starting Year

You can determine the year from which the indicator will start looking for chartist figures with the “Starting Year” option:

Rescaling the price chart

If the price chart is overwritten when the indicator is loaded, do the following to rescale it:

• Open the indicator configuration window
• Uncheck the boxes in the “line” column
• Double-click on the price chart

Create an alert system

The Prorealtime platform allows you to create trading alerts. You can use the Chart Breaker indicator to create alerts for bullish or bearish breakouts of the chartist figures.

Here are the steps you will need to follow to create an alert:

1. Configure the indicator

Before creating an alert, you must configure the Chart Breaker indicator. The Prorealtime platform will rely on your chosen indicator configuration to send you alerts.

Suppose you have selected the cup and handle figure with a length of fifty periods with the validation of breakouts and volumes. In that case, the platform will only send you alerts for this configuration.

In this example, I will create an alert that will trigger if the price breaks a 30-period cup and handle on the Apple stock in the daily time frame.

Here is the indicator setting for this alert:

2. Open the alerts window

To set up an alert, you must open the alerts window. To do this, you must right-click on the price chart and click on “Create a new alert“:

3. Select the Chart Breaker indicator

You must select the Chart Breaker indicator so that the Prorealtime alert system uses the signals returned by this indicator:

4. Set the values

The Chart Breaker indicator returns 1 when there is a bullish breakout and -1 when there is a bearish breakout. If you want to create an alert on bullish breakouts, you must choose the “equal” sign and set a value of “1”:

5. Manage triggers

The trigger part allows you to choose the time frame of the alerts. In this example, the platform will send alerts once a day in case of a bullish breakout:

Note: you can write a message describing the signal in the comment box.

6. Create the alert

After checking your alert settings, you must click on the “Create Alert” button:

Backtesting a strategy

You can integrate the indicator into a backtest to test a configuration. To do this, you must use the “CALL” function:

myBreakout, myTargetLong, myStoplossLong, myTargetShort, myStoplossShort = CALL "Chart Breaker"[1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 30, 5, 1, 0, 0, 0, 0, 0, 0, 0, 1, 2, 1, 2, 2, 4, 1, 4, 3, 4, 2020](close)

Calling the indicator in a backtest

To call the indicator in a backtest, you must pass its configuration parameters to it. I have created an example code to help you integrate the indicator into a strategy. The variable names are the same as those of the indicator.

The following code will call the Chart Breaker indicator. It will open long positions after the breakout of bullish patterns and short positions after the breakout of bearish patterns:

//--------------------------------------------------------//
// *** Chart Figure Breakout Backtest  *** //
//--------------------------------------------------------//
// Author: Vivien Schmitt
// Website: https://artificall.com
// Indicator: Chart Breaker
// Description: https://artificall.com/chart-breaker/
// Marketplace:
//--------------------------------------------------------//

DEFPARAM CUMULATEORDERS = False
DEFPARAM PRELOADBARS = 1000

//--------------------------------------------------------//
// *** POSITION SIZE *** //
//--------------------------------------------------------//
// Capital to invest
ONCE CapitalToInvest = 10000
// Minimum number of contracts
ONCE NumberOfContractsMin = 1
// Position Size
NumberOfContracts = MAX(ROUND(CapitalToInvest / Close, 2), NumberOfContractsMin)

//--------------------------------------------------------//
// *** SETTING BLOCK *** //
//--------------------------------------------------------//

// * Figure Selector
// Bullish Figures
ONCE CupHandle = 1
ONCE VBottom = 0
ONCE DoubleBottom = 1
ONCE TripleBottom = 1
ONCE HeadShoulders = 1

// Bearish Figures
ONCE InvertedCupHandle = 1
ONCE SimpleTop = 0
ONCE DoubleTop = 1
ONCE TripleTop = 1
ONCE InverseHeadShoulders = 1

// * Figure Properties
ONCE FigureLength = 30
ONCE Extension = 5

// * Signals
ONCE Breakout = 1
ONCE ValidatedBreakout = 1
ONCE Retest = 1
ONCE ValidatedRetest = 1

// * Filters
ONCE InTheTrend = 0
ONCE Reversal = 0
ONCE WithVolume = 0
ONCE WithStrength = 0

// * Money Management
ONCE TakeProfit = 1
ONCE TPLevel = 3
ONCE StopLoss = 1
ONCE SLLevel = 3

// * Display Option (unusefull in a backtest)
ONCE ResistanceColor = 2
ONCE ResistanceColorExt = 4
ONCE SupportColor = 1
ONCE SupportColorExt = 4
ONCE LineTickness = 3
ONCE FontSize = 5

// * Starting Year
ONCE StartingYear = 2000


//--------------------------------------------------------//
// * INDICATOR CALLING * //
//--------------------------------------------------------//
myBreakout, myTargetLong, myStoplossLong, myTargetShort, myStoplossShort = CALL "Chart Breaker"[CupHandle, InvertedCupHandle, VBottom, SimpleTop, DoubleBottom, DoubleTop, TripleBottom, TripleTop, HeadShoulders, InverseHeadShoulders, FigureLength, Extension, Breakout, ValidatedBreakout, Retest, ValidatedRetest, InTheTrend, Reversal, WithVolume, WithStrength, TakeProfit, TPLevel, StopLoss, SLLevel, ResistanceColor, ResistanceColorExt, SupportColor, SupportColorExt, LineTickness, FontSize, StartingYear](close)

//myBreakout, myTargetLong, myStoplossLong, myTargetShort, myStoplossShort = CALL "Chart Breaker"[1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 30, 5, 1, 0, 0, 0, 0, 0, 0, 0, 1, 2, 1, 2, 2, 4, 1, 4, 3, 4, 2020](close)


//--------------------------------------------------------//
// * Buying Conditions * //
//--------------------------------------------------------//
IF NOT OnMarket AND myBreakout = 1 THEN
  // Target price
  Set Target Price myTargetLong
  // Stop-Loss price
  Set Stop Price myStoplossLong
  // Buying order
  BUY NumberOfContracts CONTRACTS AT MARKET
ENDIF


//--------------------------------------------------------//
// * Short-selling conditions * //
//--------------------------------------------------------//
IF NOT OnMarket AND myBreakout = -1 THEN
  // Target price
  Set Target Price myTargetShort
  // Stop-Loss price
  Set Stop Price myStoplossShort
  // Buying order
  SELLSHORT NumberOfContracts CONTRACTS AT MARKET
ENDIF

Backtest result

Here is the result of the previous code running on the Nasdaq in the daily time frame:

Chart Breaker Screener

The Chart Breaker market scanner will allow you to find real-time chart pattern breakout opportunities. You can apply it to predefined or personal lists. You can apply it to all asset classes in all time frames.

Installing the screener

The screener associated with the indicator will be installed automatically with the indicator. You will find it in the ProScreener window of the Prorealtime platform.

To access the screener, you must do the following:

1. Open the ProScreener Window

You can open the ProScreener window by clicking on “View” then ProScreener, or by using the shortcut “Ctrl-E“:

2. Open the screener management window

Click on the “Create or Modify a screener” wrench in the ProScreener window:

3. Select the Chart Breaker screener

Click on the “Chart Breaker Scan” screener located in the list of screeners:

Screener Configuration

The screener settings are the same as those of the indicator, except for the display options that are not useful for the operation of the scanner:

The screener settings are the same as the indicator settings, except for the display options that are not useful for the operation of the scanner:

The screener is configured with the indicator’s default settings. However, you can configure it according to your needs.

Selection of chart patterns

You can select the patterns of your choice by checking the corresponding boxes:

Figure Length

You can set the construction length of the figures with the “Figure Length” parameter. You can also extend their length with the “Extension” parameter:

Signal Selection

The indicator detects four types of signals:

• Breakouts
• Validated Breakouts
• Retests
• Validated Retests

You can choose the type(s) of signals you want by checking the boxes of your choice:

Trend Filters

You can filter the appearance of the figures according to the trend:

• Click the “in the Trend” option to display the figures in the trend.
• Click the “Reversal” option to display the figures in counter-trend.

Volume Filter

You can filter breakout signals if volumes accompany them. To do this, click on the “with Volumes” option:

Strength Filter

You can filter breakout signals only if they occur with strength. To do this, click on the “with Strength” option:

You can now close the screener configuration window.

Timeframe and asset list

You can set the time units and asset lists on the “ProScreener Management” window.

Timeframe Selection

You can choose the time unit in which the screener will search for opportunities:

Select an Asset List

You must select a list on which you want to search for opportunities:

Launch the Screener

You can now launch the screener by clicking on the “Run ProScreener” button:

Screener Result

After launching the screener, the stocks that match your configuration will appear in the results list. The screener may take some time to run, depending on the size of the patterns and the asset lists selected.

The “Breakout” column in the results list indicates the type of breakout. It will be displayed as “1” for bullish breakouts and “-1” for bearish breakouts:

Increase the number of opportunities

If the screener does not return a result, no stocks match your configuration. Here are the actions you can take to increase the number of opportunities found by the screener:

• Reduce the size of the patterns
• Select all signal types
• Disable filters
• Choose important asset lists like Nasdaq and Nyse
• Choose a lower time frame

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