The Stock Breaker indicator detects breakouts of key price levels. 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 Stock Breaker indicator user manual includes the following sections:

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

Indicator installation

Before installing the Stock 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/stock-breakout-indicator-screener

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

https://market.prorealcode.com/comment-installer-mon-produit-dans-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 “Stock Breaker” in the search bar. Double-click the “Stock Breaker” indicator to display it on the price window.

Indicator Configuration

The Stock Breaker indicator is fully configurable. You will choose to display resistances or supports, select signal types, apply filters, set price target levels, and change 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:

Selecting resistance and support lines

You can display resistances and supports by checking the “Resistance” and “Support” boxes:

Resistance and Support Length

You can set the resistance and support length lines with the “Line 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 and Acceleration Filters

The indicator contains a trend filter that allows you to display lines appearing in the trend or counter-trend. You can filter the bullish and bearish acceleration phases of the market:

• Trend
  • Click on the “in the Trend” option to display the lines in the trend.
  • Click on the “Reversal” option to display the lines counter-trend.
• Acceleration
  • Click on the “Climax Run” option to display the resistances appearing in a bullish acceleration.
  • Click on the “Capitulation” option to display the supports appearing in a bearish acceleration.

Volume and Market Strength Filter

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

Starting Year

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

Create an alert system

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

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 Stock Breaker indicator. The Prorealtime platform will rely on your chosen indicator configuration to send you alerts.

If you have defined lines with a length of fifty periods with the validation of breakouts with volumes, the platform will send you alerts only for this configuration.

In this example, I will create an alert that will be triggered if the price breaks upwards a weekly resistance on the Apple stock.

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“. This will open the following window:

3. Select the Stock Breaker indicator

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

4. Set the values

The Stock 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 "Stock Breaker"[1, 0, 50, 10, 1, 0, 0, 0, 0, 0, 0, 0, 0, 0, 1, 4, 1, 2, 2, 4, 1, 4, 3, 4, 2015](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 calls the Stock Breaker indicator. It will open long positions after the bullish breakout of resistances:

//--------------------------------------------------------//
// *** Stock Breakout Backtest  *** //
//--------------------------------------------------------//
// Author: Vivien Schmitt
// Website: https://artificall.com
// Indicator: Stock Breaker
// Description: https://artificall.com/stock-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 *** //
//--------------------------------------------------------//
// Type of lines
ONCE Resistance = 1
ONCE Support = 0
// Length
ONCE LineLength = 50
ONCE Extension = 10
// Signals
ONCE Breakout = 1
ONCE ValidatedBreakout = 0
ONCE Retest = 0
ONCE ValidatedRetest = 0
// Trend filters
ONCE intheTrend = 0
ONCE Reversal = 0
ONCE ClimaxRun = 0
ONCE Capitulation = 0
// Strength filters
ONCE withVolumes = 0
ONCE withStrength = 0
// Take profit
ONCE TakeProfit = 1
ONCE TPLevel = 5
// Stop-loss
ONCE StopLoss = 1
ONCE SLLevel = 2
// Display options
ONCE ResistanceColor = 0
ONCE ResistanceColorExt = 0
ONCE SupportColor = 0
ONCE SupportColorExt = 0
ONCE LineThickness = 0
ONCE FontSize = 0
// Starting year
ONCE StartingYear = 2010

//--------------------------------------------------------//
// * INDICATOR CALLING * //
//--------------------------------------------------------//
myBreakout, myTargetLong, myStoplossLong, myTargetShort, myStoplossShort = CALL "Stock Breaker"[Resistance, Support, LineLength, Extension, Breakout, ValidatedBreakout, Retest, ValidatedRetest, intheTrend, Reversal, ClimaxRun, Capitulation, withVolumes, withStrength, TakeProfit, TPLevel, StopLoss, SLLevel, ResistanceColor, ResistanceColorExt, SupportColor, SupportColorExt, LineThickness, FontSize, StartingYear](close)

//myBreakout, myTargetLong, myStoplossLong, myTargetShort, myStoplossShort = CALL "Stock Breaker"[1, 0, 50, 10, 1, 0, 0, 0, 0, 0, 0, 0, 0, 0, 1, 4, 1, 2, 2, 4, 1, 4, 3, 4, 2015](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 executed on the Apple stock in the weekly time frame:

Stock Breaker Screener

The Stock Breaker market scanner will allow you to find real-time opportunities to break resistances and supports. 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:

Open the ProScreener Window

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

Open the screener management window

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

Select the Stock Breaker screener

Click on the “Stock 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 is configured with the indicator’s default settings. However, you can configure it according to your needs.

Resistance and Support Selection

You can select resistance and support lines by checking the “Resistance” and “Support” boxes:

Line Length

You can define the length of the resistance and support lines with the “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 and Acceleration Filters

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

• Click the “in the Trend” option to display the lines in the trend.
• Click the “Reversal” option to display the lines against the trend.
• Click the “Climax Run” option to display resistances in bullish acceleration.
• Click the “Reversal” option to display support during a bearish capitulation.

Volume and Strength Filter

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