Dynamic Breakout Master by tradingbauhaus

🌟 Code Description:
This Pine Script implements a trading strategy called "Dynamic Breakout Master" 💥. The core idea of the strategy is to identify breakouts (price movements) at key support 💙 and resistance 🔴 levels, through a dynamic channel that adapts to the market’s conditions. Here's how it works:

🔧 Customizable Input Parameters:
🧭 Pivot Period: This defines the number of bars (candles) to the left and right used to detect pivots (highs and lows) that mark the support and resistance zones.

📊 Data Source: You can choose whether to use highs and lows or closes and opens of the candles to identify the pivots.

📏 Max Channel Width: Specifies the maximum width allowed for the support/resistance channel, expressed as a percentage over the last 300 bars.

💪 Minimum Pivot Strength: This defines the minimum number of pivots needed for a support or resistance level to be considered valid.

🏔 Max Support/Resistance Zones: Limits the number of key zones displayed on the chart.

📅 Lookback Period: Adjusts how many bars back the system should check to find and validate support and resistance levels.

🎨 Custom Colors: You can choose colors for the support, resistance, and in-channel zones.

📉 Moving Averages (MA): The strategy allows adding up to two moving averages (SMA or EMA) to assist in making trading decisions.

📊 Calculating Support/Resistance Levels:
The system uses an algorithm to identify pivots from prices and calculates dynamic support and resistance zones 🔒🔓.

The closer the pivots are and the stronger their influence, the more relevant the zone becomes for the strategy.

The dynamic channel is drawn on the chart, with a maximum width limit for these zones defined by the input parameter.

📈 Trading Logic:
🚀 Identifying Breakouts:

The strategy looks for when the price breaks (breakouts) a resistance or support level.
If the price breaks upward through the resistance level, a buy order 📈 is triggered.
If the price breaks downward through the support level, a sell order 📉 is triggered.
🔔 Alerts:

Resistance Break (ResBreak) and Support Break (SupBreak) alerts are configured to notify users when a significant breakout occurs.
💰 Commissions:

The strategy includes a commission (0.1%) to simulate transaction costs for each trade.
📊 Chart Visualization:
The support and resistance zones are displayed as colored rectangles:
🔴 Resistance (red) and
🔵 Support (blue).

Pivots of support and resistance can be labeled as P (for resistance) and V (for support).

Breakouts of support or resistance levels are marked with triangles that appear on the chart 🔺🔻.

📈 Trading Strategy:
If the price breaks upward through the resistance level, a long position (buy) 📈 is opened.

If the price breaks downward through the support level, a short position (sell) 📉 is opened.

🏆 Conclusion:
This script is a dynamic breakout strategy 💥 that allows traders to capture significant price movements when support or resistance channels break. The customizable parameters let users fine-tune the strategy according to their preferences, while the visual alerts on the chart make it easier to follow trading opportunities. The inclusion of moving averages and key price zones adds an extra layer of analysis to improve decision-making 💡.