Swing Breakout System (SBS)

The Swing Breakout Sequence (SBS) is a trading strategy that focuses on identifying high-probability entry points based on a specific pattern of price swings. This indicator will identify these patterns, then draw lines and labels to show confirmation.

How To Use:
The indicator will show both Bullish and Bearish SBS patterns.
Bullish Pattern is made up of 6 points: Low (0), HH (1), LL (2 | but higher than initial Low), New HH (3), LL (5), LL again (5)
Bearish Patten is made up of 6 points: High (0), LL (1), HH (2 | but lower than initial high), New LL (3), HH (5), HH again (5)
A label with an arrow will appear at the end, showing the completion of a successful sequence

Idea behind the strategy:
The idea behind this strategy, is the accumulation and then manipulation of liquidity throughout the sequence. For example, during SBS sequence, liquidity is accumulated during step (2), then price will push away to make a new high/low (step 3), after making a minor new high/low, price will retrace breaking the key level set up in step (2). This is price manipulating taking liquidity from behind high/low from step (2). After taking liquidity price the idea is price will continue in the original direction.

Step 0 - Setting up initial direction
Step 1 - Setting up initial direction
Step 2 - Key low/high establishing liquidity
Step 3 - Failed New high/low
Step 4 - Taking liquidity from step (2)
Step 5 - Taking liquidity from step 2 and 4

Pattern Detection:
- Uses pivot high/low points to identify swing patterns
- Stores 6 consecutive swing points in arrays
- Identifies two types of patterns:
1. Bullish Pattern: A specific sequence of higher lows and higher highs
2. Bearish Pattern: A specific sequence of lower highs and lower lows
Note: Because the indicator is identifying a perfect sequence of 6 steps, set ups may not appear frequently.



Visualization:
- Draws connecting lines between swing points
- Labels each point numerically (optional)
- Shows breakout arrows (↑ for bullish, ↓ for bearish)
- Generates alerts on valid breakouts

User Input Settings:
Core Parameters
1. Pivot Lookback Period (default: 2)
- Controls how many bars to look back/forward for pivot point detection
- Higher values create fewer but more significant pivot points

2. Minimum Pattern Height % (default: 0.1)
- Minimum required height of the pattern as a percentage of price
- Filters out insignificant patterns

3. Maximum Pattern Width (bars) (default: 50)
- Maximum allowed width of the pattern in bars
- Helps exclude patterns that form over too long a period