Bearish Breaker

16 nov

Description:
The Bearish Breaker is designed to detect significant bearish candles that meet specific customizable conditions, allowing traders to easily identify potential sell signals or strong downtrends. This indicator highlights bearish candles based on size, close position within the candle's range, and other specific criteria, with options to plot Fibonacci levels, a stop loss line, and dollar loss estimation.

Key Features:
1. Customizable Candle Highlighting Conditions:
Highlights candles that are bearish and whose body is greater than a user-defined multiple of the average candle body size over a specified period.

2.Checks if the candle’s close is within a customizable percentage from the bottom of the candle’s range (default is 35%).

3. Ensures the close is lower than the lows of the previous two candles.

Visual Markings:
1. A plus sign appears below large bearish candles that meet the highlighting criteria.

2. Optionally plots a line at the low of the previous candle, labeled as "FVG" (Fair Value Gap).

3. Fibonacci Levels:
Plots 61.8% and 50% Fibonacci levels from the low to high of the highlighted candle.

4. Provides options to show/hide labels and adjust line colors.

5. Shaded Area:
Fills the area between the 50% and 61.8% levels with customizable color and transparency.

Stop Loss and Dollar Calculation:
1. Calculates a stop loss level, set a user-defined number of ticks above the high of the highlighted candle.

2. Displays a label with the potential dollar loss from the "FVG" to the stop loss line, using a specified dollar value per tick.

How To Use

1. Highlight Conditions: Adjust parameters like the average body length, threshold multiplier, and close percentage to fine-tune the bearish candle detection. typically I like to use the 4-6 body length with a 1.5 multiplier

2. Visual Elements: Toggle labels, colors, and transparency of Fibonacci and FVG lines, allowing you to customize the display for clarity.

3. Risk Management: Set the dollar value per tick and stop loss distance (in ticks) to display potential risk for your specific instrument , for example dollar per tick on NQ is $5 , ES is $12.50, CL is $10

4. Alerts:
An alert can be set to trigger each time a large bearish candle forms and meets all conditions, helping you stay notified of potential bearish momentum shifts.

5. Parameters:
Threshold Multiplier: Adjusts the size threshold for highlighting a bearish candle.
Close Percent in Range: Sets how close to the bottom of the candle’s range the close must be (0-100%). I like the candle to close in the lower 75 percent of the candle.

6. Stop Loss Ticks Above High: Controls how far above the high of the highlighted candle to place the stop loss.

7. Dollar Value per Tick: Calculates potential dollar loss between the FVG level and stop loss based on the asset’s tick value.

8. To trade this setup I like to wait for the first 1-2 candles after the highlighted breaker candle to pull back into the shaded area for a short position and target the low of the breaker candle or a 2-1 risk to reward.

Ideal For:
This indicator is ideal for traders looking to identify strong bearish momentum, manage risk visually, and use Fibonacci and fair value gaps on large bearish candles as potential areas for short entries with suggested stop loss areas and target profits.

Disclaimer: This indicator is for educational and informational purposes only and should not be used as a sole trading strategy. Always perform your own analysis before making trading decisions.