If you have plotted the automated or manual trendline on the chart, then enabling Breakout Detection on the charts will allow the TrendSpider to mark the trendline breakouts, whether upward or downward for you automatically. In this documentation, we will understand how to add the breakout detection on the chart.
Let’s get started 🚀
Step 1: Click on the Breakouts Button as can be observed from the snippet below.
Step 2: You will find the multiple green and red circles plotted on the Trend Lines.
- Green Circle: Represents the trendline breaking up
- Red Circle: Represents the trendline breaking down
Each breakout requires one full candlestick close through a trend line on a given timeframe. For example, on a five-minute chart, a five-minute candlestick must close on the opposite side of a trend line in order for a breakout to be valid.
Breakout detection makes it easier for the traders to view exactly when the breakout occurred while also helping them to precisely spot the fake breakouts on the chart.