Multi-Timeframe Structure + Breakout Strategy

Strategy Idea

This strategy combines higher timeframe trend direction with lower timeframe structure breakouts. Instead of trading every breakout, it aligns entries with the broader market direction and waits for confirmation from recent price structure.
The goal is to improve trade selection by filtering signals through both trend context and local market behavior.

How It Works

1. Higher Timeframe Trend Filter
A higher timeframe EMA is used to define the overall direction.

• Price above HTF EMA → bullish bias
• Price below HTF EMA → bearish bias This helps avoid trades against the dominant trend.

2. Market Structure Levels
The script tracks recent highs and lows over a lookback period.

• Highest high → resistance reference
• Lowest low → support reference These levels act as structure zones.

3. Breakout Confirmation
Trades are triggered only when price breaks these structure levels:

• Break above recent high → potential continuation upward
• Break below recent low → potential continuation downward

4. Volatility-Based Risk Management

• Stop-loss and take-profit levels are calculated using ATR.
• Stop-loss adapts to volatility
• Risk-to-reward ratio defines the target

Key Features

• Multi-timeframe trend alignment
• Structure-based breakout entries
• ATR-based adaptive exits
• Non-repainting logic
• Designed for backtesting and experimentation

When It May Perform Better

• Trending markets
• Volatility expansion phases
• Higher timeframe directional moves

It may produce fewer signals in low-volatility or sideways conditions.

Important Note

This strategy is intended for testing and learning purposes. Results vary depending on market conditions, timeframe, and parameter selection. Always validate across multiple instruments before using it in live environments.

Pine Script v6 Strategy Code

//@version=6
strategy(
    "MTF Structure Breakout Strategy",
    overlay = true,
    initial_capital = 100000,
    default_qty_type = strategy.percent_of_equity,
    default_qty_value = 3,
    commission_type = strategy.commission.percent,
    commission_value = 0.05,
    slippage = 1
)

// ───── INPUTS ─────
htfTF     = input.timeframe("60", "Higher Timeframe")
htfEmaLen = input.int(100, "HTF EMA Length")

lookback  = input.int(20, "Structure Lookback")
atrLen    = input.int(14, "ATR Length")
atrMult   = input.float(1.8, "ATR Stop Multiplier")
rr        = input.float(2.0, "Risk Reward")

// ───── HIGHER TIMEFRAME TREND ─────
htfEMA = request.security(
     syminfo.tickerid,
     htfTF,
     ta.ema(close, htfEmaLen),
     lookahead = barmerge.lookahead_off
)

trendUp   = close > htfEMA
trendDown = close < htfEMA

// ───── STRUCTURE LEVELS ─────
recentHigh = ta.highest(high, lookback)
recentLow  = ta.lowest(low, lookback)

// ───── BREAKOUT CONDITIONS (GLOBAL SAFE) ─────
breakUp   = ta.crossover(close, recentHigh[1])
breakDown = ta.crossunder(close, recentLow[1])

// ───── ENTRY CONDITIONS ─────
longCondition  = breakUp and trendUp
shortCondition = breakDown and trendDown

if longCondition and strategy.position_size == 0
    strategy.entry("Long", strategy.long)

if shortCondition and strategy.position_size == 0
    strategy.entry("Short", strategy.short)

// ───── RISK MANAGEMENT ─────
atrVal = ta.atr(atrLen)

longStop   = strategy.position_avg_price - atrVal * atrMult
longTarget = strategy.position_avg_price + atrVal * atrMult * rr

shortStop   = strategy.position_avg_price + atrVal * atrMult
shortTarget = strategy.position_avg_price - atrVal * atrMult * rr

strategy.exit("Exit Long", from_entry="Long", stop=longStop, limit=longTarget)
strategy.exit("Exit Short", from_entry="Short", stop=shortStop, limit=shortTarget)

// ───── VISUALS ─────
plot(htfEMA, title="HTF EMA", color=color.orange)
plot(recentHigh, title="Structure High", color=color.green)
plot(recentLow, title="Structure Low", color=color.red)