Cycle-Synced Channel Breakout

27 sept.

📌 Cycle-Synced Channel Breakout – Detect Breakouts Confirmed by Candles and Momentum Cycles

📖 Overview

The Cycle-Synced Channel Breakout indicator is a precision breakout detection tool that combines the power of:
• Adaptive Keltner Channels
• Dominant Cycle Period Analysis (Ehlers-inspired)
• Candlestick Pattern Recognition (Engulfing)

This multi-layered approach helps identify true breakout opportunities by filtering out noise and false signals, making it ideal for swing traders and intraday traders seeking high-probability directional moves.

⚙️ How It Works
1. Keltner Channel Envelope
A dynamic volatility channel based on the EMA and ATR defines the upper and lower bounds of price movement.
2. Engulfing Candle Detection
The script detects strong bullish and bearish engulfing patterns, which often signal trend reversals or momentum continuations.
3. Dominant Cycle Momentum (Ehlers-inspired)
Using a smoothed power oscillator derived from a detrended price series, the indicator assesses whether momentum is accelerating during the breakout — filtering out weak moves.
4. Signal Confirmation Logic
A signal is only shown when:
• An engulfing pattern is detected, and
• Price breaks out of the Keltner Channel, and
• Momentum (cycle power) is rising
5. Visual Feedback
• Breakout signals are plotted with “BUY” or “SELL” labels
• Faded green/red background highlights confirmed breakouts
• Optional display of engulfing candles with triangle markers

⸻

🛠️ Key Features
• ✅ Adaptive Keltner Channels
• ✅ Bullish/Bearish Engulfing Candle Recognition
• ✅ Ehlers-style Cycle Momentum Confirmation
• ✅ Background highlights for confirmed breakouts
• ✅ Optional candle pattern visualization
• ✅ Lightweight and Pine v6 compatible

⸻

🧪 Inputs
• Keltner Length – EMA period for channel basis
• Multiplier – Multiplied with ATR to determine band width
• Cycle Lookback – Used to calculate smoothed cycle power
• Show Engulfing Candles? – Toggles candlestick signals
• Show Breakout Signals? – Toggles breakout labels and backgrounds

⸻

🧠 How to Use
• Look for “BUY” or “SELL” labels when:
• An engulfing candle breaks through the Keltner Channel
• Cycle momentum confirms strength behind the move
• The background color will faintly highlight the breakout direction.
• Use in combination with other trend or volume indicators for added confluence.

🔒 Notes
• This indicator is not repainting.
• It is designed for educational and research purposes only.
• Works across all timeframes and asset classes (stocks, crypto, forex, etc.)

4 oct.

Notes de version

📝 Update Log for v1 – Cycle-Synced Channel Breakout .

🚀 What’s New in This Version

✅ 1. Signal Coverage Improved
• Previously, the indicator only triggered signals on perfect engulfing candles, which missed many strong breakout trends.
• Now includes body breakout logic:
• A signal can be triggered if the current candle shows strong body expansion, even if it is not a classic engulfing.
• This drastically improves detection of real-time momentum breakouts.

✅ 2. Signal Cooldown Feature Added
• Introduced a cooldown mechanism to reduce noise and over-triggering during fast trends.
• You can now control how many bars must pass before a new BUY/SELL signal appears, preventing back-to-back alerts and improving clarity.
• Default cooldown: 5 bars (adjustable)

✅ 3. Toggle: Use Body Expansion Logic
• Added user input:
Use Body Breakout if No Engulfing?
• ON (default): Uses body expansion when engulfing pattern is missing.
• OFF: Only uses engulfing candles.

✅ 4. Clean Signal Visualization
• Signals now appear only when all breakout criteria are met AND cooldown allows.
• Background color also respects cooldown condition.

⸻

⚙️ Recap of Indicator Logic

Signals only appear when:
• Price breaks above/below the Keltner Channel
• There is either:
• An engulfing candle, or
• A strong breakout candle with large body
• Cycle momentum (Ehlers-style) is increasing
• Cooldown period has passed since last signal

⸻

🔄 Version: v1

📅 Updated: 4th Oct 2025
🔧 Pine Script: v6
🔁 Compatible with all instruments and timeframes
🎯 Ideal for: Breakout Traders, Trend Riders, Momentum Scalpers