MGC Wyckoff Second Breakout V3 Candle RR — Strategy by zhangwenjian810

By zhangwenjian810

Performance Metrics

Description

**Gold 15-Minute Wyckoff Second Breakout Strategy V3**## Core IdeaThis strategy is based on a Wyckoff-style breakout confirmation concept.The strategy does **not** enter on the first breakout. Instead, it waits for the market to:1. Break an isolated high or low.2. Form a new breakout extreme.3. Pull back or pause.4. Break that new extreme again.The second breakout is treated as the higher-quality confirmation signal.---## Timeframe```textChart timeframe: 15 minutesMarket: Gold, preferably XAUUSD or MGCTrade type: short-term breakout / intraday-to-swing```---## Long Setup### Step 1: Identify an isolated highAn isolated high is defined as a pivot high.Default setting:```textPivot Left Bars = 4Pivot Right Bars = 2```This means the high must be higher than the highs of the previous 4 candles and confirmed by the following 2 candles.This pivot high is called:```textH = isolated high```---### Step 2: First breakout above HA first breakout occurs when price closes above the isolated high:```textClose > H```The strategy does **not** enter here.This first breakout only activates the setup.---### Step 3: Track the post-breakout highAfter the first breakout, the strategy tracks the highest high made after that breakout.This level is called:```textH2 = high formed after the first breakout```---### Step 4: Wait for a pullback or pauseThe strategy then waits for price to stop pushing higher.A pullback/pause is detected when price closes below H2:```textClose H2```Default waiting window:```textMax Bars After First Breakout = 20 bars```On a 15-minute chart, this is about 5 hours.---## Short SetupThe short setup is the mirror image of the long setup.### Step 1: Identify an isolated lowAn isolated low is defined as a pivot low:```textPivot Left Bars = 4Pivot Right Bars = 2```This pivot low is called:```textL = isolated low```---### Step 2: First breakdown below LA first breakdown occurs when price closes below the isolated low:```textClose L2```---### Step 5: Second breakdown below L2If price closes below L2 within the maximum waiting window, the strategy enters short:```textClose < L2```---## Stop-Loss LogicThe strategy uses a **structure-based stop-loss**.### Long stop-lossFor long trades:```textStop-loss = lowest low between the first breakout and the second breakout - 0.2 ATR```This means the stop is placed below the pullback structure.---### Short stop-lossFor short trades:```textStop-loss = highest high between the first breakdown and the second breakdown + 0.2 ATR```This means the stop is placed above the bounce structure.---## Reward-to-Risk LogicV3 uses a dynamic reward-to-risk model:```textLow-liquidity environment: 1R targetNormal environment: 2R targetTrend expansion environment: 3R target```---## Low-Liquidity ConditionLow liquidity is approximated using small candles and narrow ranges.The strategy checks whether recent candles are smaller than normal:```textRecent average candle body < long-term average candle body × 0.75ANDRecent average candle range < long-term average candle range × 0.75```Default lookback:```textRecent lookback = 10 barsBody average length = 50 barsRange average length = 100 bars```If this condition is true, the strategy uses:```textReward/Risk = 1:1```---## Normal Market ConditionIf the market is neither low-liquidity nor trend-expansion, the strategy uses:```textReward/Risk = 2:1```---## Trend Expansion ConditionTrend expansion is based on the breakout candle.A long trade is considered trend expansion if the second breakout candle:```text1. Is a bullish candle2. Has a body larger than 1.5 × average body3. Has a total range larger than 1.0 × ATR4. Closes near the high of the candle```A short trade is considered trend expansion if the second breakdown candle:```text1. Is a bearish candle2. Has a body larger than 1.5 × average body3. Has a total range larger than 1.0 × ATR4. Closes near the low of the candle```If trend expansion is detected, the strategy uses:```textReward/Risk = 3:1```---## Trade ManagementOnce a trade is entered:```textThe stop-loss is fixed at the structure stop.The take-profit is fixed based on the selected R multiple.The strategy does not trail the stop.The strategy does not scale in.The strategy does not scale out.Only one position is allowed at a time.```---## Default Parameters```textPivot Left Bars: 4Pivot Right Bars: 2Max Bars After First Breakout: 20ATR Length: 14Structure Stop Buffer: 0.2 ATRBody Average Length: 50Range Average Length: 100Low Liquidity Lookback: 10Low Liquidity Multiplier: 0.75Trend Body Expansion Multiplier: 1.5Trend Range ATR Multiplier: 1.0Strong Close Position: 0.30Low Liquidity RR: 1.0Normal RR: 2.0Trend Expansion RR: 3.0```---## SummaryIn simple terms:```textThe strategy waits for a breakout, ignores the first breakout, then trades the second breakout after a pause or pullback.It uses structure-based stops and adjusts the profit target based on candle strength:Small/narrow market = 1RNormal market = 2RStrong breakout candle = 3R```This makes it a **Wyckoff-inspired second-breakout momentum strategy with adaptive risk-reward targets**.

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