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D-Shape Breakout Signals

By LuxAlgoAug 29, 2024

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D-Shape Breakout Signals turns support and resistance into geometry. The distance between two swing points defines a semi-circular arc (the "D") and that curve, not a horizontal line, becomes the breakout boundary. Each shape resolves exactly once: through the top, through the bottom, or expiring at its right edge. The approach shares DNA with arc-based fib geometry tools, which likewise scale curved reaction zones from swing distances.

How to Trade the D-Shape Breakout Signals?

  • Green dot: price broke above the arc; the shape recolors green and the resolution is bullish.
  • Red dot: the arc broke to the downside; the shape recolors red.
  • Blue dot: a Neutral Breakout: price reached the arc's right edge without crossing either boundary, and the shape turns blue.
  • Trailing stop-loss line: after a confirmed break, the midline of the broken D-shape nearest to price becomes the TSL, updating only with new highs or lows in the breakout's direction, usable as a stop, an entry reference, a support/resistance level, or a trend gauge.

One signal per shape keeps the chart honest: resolved arcs age out under your minimum-pattern budget while active ones keep working, and the width you choose moves both the detection line and the eventual stop placement.

D-Shape Breakout Signals Settings

  • Swing Length: the detection period for the swing highs and lows that anchor each shape.
  • Minimum Patterns: the minimum number of D-shapes kept visible before older ones are cleared.
  • D-Width: arc width as a percentage of the distance between swing points.
  • Included Swings: build shapes from Swing Highs, Swing Lows, or Both.
  • Style Historical Patterns: display resolved shapes as Arc, Midline, or Both, plus label sizing, a connecting swing-level line, and TSL color fill.

Frequently Asked Questions

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