Combined Stochastic, ADX & Breakout

Overview
This technical indicator combines three powerful technical analysis tools - Stochastic Oscillator, Average Directional Index (ADX), and Breakout detection - to identify potential trading opportunities on daily charts. The indicator is designed to identify strong trend movements with momentum confirmation.

TO BE USED ON DAILY CHART ONLY
made by @immortaltraderA
on twitter

Technical Components
1. Stochastic Settings (Fast Stochastic)

Period K: 8 periods
Smooth K: 1 period
Period D: 1 period
This creates a very responsive stochastic that reacts quickly to price changes

2. ADX Settings

ADX Length: 14 periods
DI Length: 14 periods
Key Level: 30 (threshold for trend strength)

3. Breakout Detection

Identifies price breakouts by comparing current high with previous highs
Breakout condition: Current high > Previous high AND Previous high < High two bars ago

Signal Conditions
High Signal (Short Setup)
Triggers when ALL conditions are met:

Stochastic: K < 41
ADX: > 30 (strong trend)
DI+: Greater than DI- (upward pressure)

Low Signal (Long Setup)
Triggers when ALL conditions are met:

Stochastic: K > 60
ADX: > 30 (strong trend)
DI-: Greater than DI+ (downward pressure)

Breakout Confirmation

Identified by yellow triangle (▲) below the bar
Condition: high > high[1] and high[1] < high[2]

Visual Components
Signal Markers

High Signals

Blue triangle down above the bar
Marks potential short entries


Low Signals

Light blue triangle up below the bar
Marks potential long entries


Breakout Signals

Yellow triangle (▲) below the bar
Black text on yellow background
Size: Tiny



Alert Conditions
High Alert

Title: "Stochastic and ADX Conditions Met - High"
Message: "High of last bar marked - Stochastic < 41, ADX > 25, DI+ > DI-"

Low Alert

Title: "Stochastic and ADX Conditions Met - Low"
Message: "Low of last bar marked - Stochastic > 60, ADX > 30, DI- > DI+"