Indicator for Identifying False Breakouts (Titan_LiquiditySweepDetector)
Indicator Overview
Focus on "Break and Return" Movements
In the market, it is common to see price movements where important highs or lows are broken once, but then quickly return to the original range. At first glance, it may appear to be a breakout, but in reality, the movement does not continue and often reverses direction.
This Titan_LiquiditySweepDetector is an indicator that focuses on such "break and return" movements. It clearly displays potential false breakouts or stop hunts with arrows.
How It Works
This indicator is based on recent highs and lows. After the price exceeds these levels once, if the closing price returns back within the original range, it is detected as a "liquidity sweep."
For example, even if the price slightly breaks above a recent high, if it ultimately closes below that high, the upward breakout may have been invalidated. In such cases, the upward momentum may not continue and could move in the opposite direction.
When the indicator detects such movements, it displays arrows on the chart. If the price is pushed back by an upper wick, a downward arrow is shown; if pushed back by a lower wick, an upward arrow is shown, making it easier to visually understand the situation.
How Beginners Should Use It
Just because an arrow is displayed does not mean you need to enter a trade immediately. What is important is recognizing the possibility that "the breakout may have been invalidated."
For example, if an upward breakout is invalidated, the subsequent price movement may weaken or turn downward. In such situations, it is important not to chase the trend blindly, but to pause and assess the situation.
By combining this with other technical indicators and line analysis, you can make more reliable decisions.
This indicator works only on the Windows version of MT5 and MT4 provided by TitanFX.
Indicator Terms of Use
Only those who agree to all the following items may use the indicators distributed on this website (https://research.titanfx.com):
1.The indicators and related descriptions are based on various data believed to be reliable, but their accuracy and completeness are not guaranteed.
2.The data displayed by the indicators do not guarantee your investment results. Also, the displayed content may vary due to market conditions and communication environments.
3.Please make investment decisions using indicators at your own risk. We are not responsible for any disadvantages or damages arising from the use of indicators.
4.Specifications of the indicators are subject to change without notice. Changes will be announced on the indicator description pages, etc.
5.Indicators should only be used by customers who have downloaded them. Transferring or selling the indicators to third parties is prohibited.
Indicator Settings
Input (for MT5), Parameter Input (for MT4) Tab Settings
| Variable Name | Description | Default |
|---|---|---|
| Lookback Bars | Specifies the number of bars used to measure highs and lows. | 20 |
| Minimum Sweep Threshold | Specifies in pips how much the price must exceed a high or low to be considered a sweep (false movement). | 1.0 |
| Arrow Offset from Bar | Specifies the distance between the bar and where the arrow is displayed. | 3.0 |
| Minimum Interval Between Same-Direction Signals | Specifies how many bars to wait before generating another signal in the same direction after one has occurred. | 3 |
Color (for MT5), Color Settings (for MT4) Tab Settings
Not used in this indicator.
| MT5 Variable Name | MT4 Variable Name | Description |
|---|---|---|
| 0 | 0 | Specifies the color and thickness of the arrow indicating a potential false breakout due to a low being broken. |
| 1 | 1 | Specifies the color and thickness of the arrow indicating a potential false breakout due to a high being broken. |