Swing Breakout Sequence Indicator

Created 06 Sep 2024 · Updated 07 Mar 2025

The Quantower Swing Breakout Sequence indicator is a Premium indicator inspired by Stoic Trader's trading model.

Prerequisites

To use this indicator you should have the following prerequisites available.


Description

This indicator implements a high-probability entry model with a defined risk/reward ratio. The entry model is based on a sequence of 5 swings — the long-model entry; the short-model entry is the exact inverse.

Examples

Detection of Entries Based on the Swing Breakout Sequence

On the NQ instrument on the 15-second timeframe, a bullish Swing Breakout Sequence was triggered when Swing 3 was broken. A dashed line links the breakout bar and the Swing 3 price, marking the breakout level. In real-time mode, the sequence is only drawn once the breakout occurs — the whole SBS pattern is drawn at once, along with a sound alert if that parameter is enabled.

Swing Breakout Sequence entry detection example
Click to enlarge
Not All Sequences Are Winning Sequences

A second bullish pattern, detected with the same parameters, was not a success — price immediately pulled back in the other direction. Not all SBS sequences are profitable; the pattern isn't perfect. The Quality Filter filters out bad SBS instances, but some will always slip through.

Failed Swing Breakout Sequence example
Click to enlarge
Two Successful Sequences on the Same Chart

A third example illustrates two successful sequences, bullish then bearish, on the 1-minute NQ chart. The strategy here is to open a trade when the breakout is triggered, set the stop loss either on Swing 4 or Swing 5's price, and use a 1:1 profit-to-loss ratio.

Two successful Swing Breakout Sequences example
Click to enlarge

Features

The Swing Breakout Sequence indicator has a set of unique features:

  • Plots the Swing Breakout Sequence on any timeframe
  • Sound alerts
  • Highly customizable, lightweight, and adaptable to a wide range of instruments

Parameters

We always try to keep the parameters to a minimum.

License
LicenseThe license key you get when you create an account on automated-trading.ch. After creating an account, copy your license key from the billing page. You need to set this parameter only once — once validated, it will be remembered.
Swing PeriodSwings are higher lows, higher highs, lower highs and lower lows. After each price bar closes, a swing can be detected, but the next bar (or the one after) can cancel it by creating a new swing of the same type. The swing period sets how many bars are enough to separate two swings of the same type — a value of 3 or 4 is common.
Quality Filter Sets a filter on the quality of detected SBS based on certain criteria.
  • Only High Quality: filters out SBS patterns that don't respect certain ratio rules, keeping only high-quality ones
  • No Filter: deactivates the filter, showing all detected SBS
Show Sequence NumbersEnables/disables drawing number labels below/above each swing sequence point.
Show Sequence LinesEnables/disables drawing lines connecting the swing sequence points.
Draw Breakout LevelEnables/disables drawing a line between the breakout swing and the current bar that triggered breaking that swing level.
Show Signal ArrowEnables/disables drawing the arrow on each valid swing sequence breakout.
Play SoundEnables playing an alert sound when a swing sequence is detected.
Breakout Swing
  • Prior Swing: validates and draws the pattern when price closes above/below the last Higher High/Lower Low formed right before the 1st swing of the sequence
  • Swing 1 through Swing 4: validates and draws the pattern when price closes above/below that swing of the sequence
  • Fibonacci Retracement: validates and draws the pattern when price closes above/below the Fibonacci retracement level specified by Breakout Fibo Level
Breakout Fibo Level Only used if Breakout Swing is set to Fibonacci Retracement — validates and draws the pattern when price hits the chosen Fibonacci level (23.60%, 38.20%, 50%, 61.80%, or 76.40%) calculated from Swing 4 in the sequence.
Rendering
Bullish Brush / Bearish BrushDraw color of bullish/bearish items on the chart.

Download & Installation Instructions

License Requirements

At automated-trading.ch you can choose to either purchase a monthly subscription to use our premium products, or use our free products without subscribing.

In both cases, you need to create an account so you can get a License you can use for both premium and free products.

To obtain your license, simply sign up and then get your license on the billing page.

Important: This is a Premium product. It can be run in Backtest, Playback, and Optimization modes for free; an active Premium subscription is required to run it live.
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Latest Version v1.2.0.0 · Published 1 year ago
This file was downloaded 210 times.

You can also download this strategy — and every other automated-trading.ch strategy or indicator — anytime from your centralized Downloads page.

Installation Steps
1
Extract the whole content of the downloaded .zip file into your Quantower indicators folder, by default at {C:\Users\{Windows Username}\Documents}\Quantower\Settings\Scripts\Indicators, making sure it ends up inside a new folder called ATCHSwingBreakoutSequence.
2
Open a new chart window, then right-click the chart and choose Indicators → Add Indicator.
3
Select Custom/ATCHSwingBreakoutSequence from the list and double-click it.
4
Copy/paste your license number, found on the billing page, into the License parameter of the indicator's settings panel.
5
If your license isn't recognized, an error message appears on the chart. Once submitted successfully, the indicator runs on historical data for a couple of seconds, then continues running on live market data.

Frequently Asked Questions

General

Yes — if you have an idea that you believe can improve this indicator, use the contact page to send us a message.

No, the source code of the indicator is protected for copyright reasons.

No, this indicator only does rendering and doesn't provide data that can be used from within a strategy — check out our other strategies for one based on this same concept.
Subscriptions Q&A

After you sign up, you'll get access to the billing page, where you can grab your license and use it on every free or premium product. We don't use NinjaTrader's built-in vendor licensing system — we've built our own, where you submit the license number on each product you're using.

Yes, you can cancel/resume your subscription with a click of a button, no questions asked. You don't even need to request something or send a message — you can manage your subscription in a completely autonomous way.

Our products verify the license validity on the 1st day of each month. At that date, you need to provide the license number to the product (with a simple copy/paste) so that it stays valid for the rest of the month.

We do not store payment credentials — they are encrypted and passed to Stripe or PayPal for a safe & secure way to purchase subscriptions on our site.

Please send us a message from the Contact page.

Release Notes

  • Updated the indicator for Quantower v1.141.19; Fixed bad drawing of numbers and arrows on lower timeframes

  • Removed strong condition on Swing5 price. Before this update, Swing5 required to be below/above Swing4. This condition was removed which now means that Swing4 and Swing5 are only required to be successive Swing Lows (for bullish) or Swing Highs (for bearish) regardless of whether Swing5 is higher or lower than Swing4

  • First Release of the indicator
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Quick Facts
Platform Quantower
Category Indicator
Plan Required Premium
Latest Version v1.2.0.0
Last Updated 1 year ago
Downloads 210