Abu Laith Downtrend lines

How to use it

• The line marks where sellers have been stepping in. A breakout means that pressure has eased. It is not a buy signal on its own.
• Combine it with your own analysis: trend, volume, support/resistance and market context.
• Works on stocks, ETFs, crypto and forex, on any timeframe. Daily and 4H give cleaner lines.
• A line needs 5 candles after a swing high to confirm it. This lag is the price of having lines that don't repaint.

Settings

• Breakout Confirmation: Close (default) needs a candle close above the line. Wick triggers as soon as the high touches it, which is earlier but gives more false breaks.
• Pivot Bars Each Side (5): how many candles on each side define a swing high. Higher means fewer but stronger lines.
• Minimum Touches (3): how many touches a line needs.
• Touch Tolerance (0.2 ATR): how close price must come to count as a touch.
• Breakout Buffer (0.1 ATR): how far beyond the line price must go to count as a breakout.
• ATR Length (14): the volatility measure behind the tolerance and buffer, so they adapt to any market.
• Max Line Length (300 bars): the oldest swing high a line can start from.
• Line Expiry (100 bars): a line expires if it isn't touched for this many bars.
• Number of Lines to Show (1): how many lines are visible at once.
• Line Color / Width: default yellow, width 2.
• Show Broken Lines: keep or hide lines that have already broken.
• Early Lines (off): a gray dotted line that counts the current candle as a touch, so it appears sooner. It is less reliable and only shows on the current part of the chart.
• Early Touch Spacing (3): the minimum number of candles between counted touches on early lines.
• Show Breakouts / Breakout Color: the breakout dot.

Alerts

Open the alert form (bell icon, or Alt + A), choose this indicator as the source, then pick an output and set the condition to "Greater Than 0":

• Breakout: fires when price breaks above a downtrend line.
• New Line: fires when a new confirmed downtrend line appears, about 5 candles after its last swing high.

Both alerts work even when their dots are hidden. Early (gray) lines don't trigger alerts.

For educational purposes only. Not financial advice.