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FreeIndicators·ThinkorSwim

Simple Breakout

Clean breakout marks off prior range highs and lows.

How to install in ThinkorSwim

  1. In ThinkorSwim, open a chart, then go to Studies → Edit Studies.
  2. Click Create, clear the editor, and paste the code.
  3. Name it, click Apply, then OK, and it draws on your chart.

How to Use — WeTradePro Simple Breakout

Draws the N-bar high/low channel (Donchian) and arrows the bar that breaks it. The classic turtle breakout, kept simple. Educational, not advice.

What it is (one line)

A Donchian-style breakout marker: it plots the highest high and lowest low of the prior N bars and arrows the bar that closes past either edge — a new N-bar high (long) or low (short).

Who it's for & best timeframe

Trader typeHow you use itBest timeframeRecommended setting
Day traderTrade intraday range breaks (opening range, prior-N-bar high)1-min – 15-minlength 10–20
Swing traderBest fit — 20-day-high breakouts, the turtle stapleDailylength 20
Position traderMajor 55-bar breakouts for trend-following entriesWeekly / Dailylength 55

Best overall: Daily, `length 20`. A 20-day-high break is the textbook trend-following entry.

What you see (overlay on price)

  • Gray dashed upper line: highest high of the prior N bars (resistance).
  • Gray dashed lower line: lowest low of the prior N bars (support).
  • Green up arrow: the first bar to close above the N-bar high — breakout.
  • Red down arrow: the first bar to close below the N-bar low — breakdown.
  • Labels: the live channel levels and any active break.

How to trade it (the core play)

  1. Trade breakouts in the direction of the larger trend — long breakouts above a rising structure are highest-odds.
  2. Enter on the arrow (close beyond the channel) or on a small retest of the broken line.
  3. Stop below the broken upper line (long) / above the broken lower line (short) — the line should now hold.
  4. Trail with the opposite channel line (Donchian trail): exit a long when price closes below the N-bar low.
  5. Filter chop: in a tight range, breaks fail (false breaks); demand volume or a wider length.

Settings (inputs)

  • length (20) — N-bar lookback for the channel. 20 = turtle standard; 55 = slower, major breaks; 10 = faster, more signals.

Best on

  • Trending, liquid names and ETFs: SPY, QQQ, NVDA, AAPL, commodities/futures. Breakout systems thrive on instruments that trend.

Common mistakes

  • Trading every break in a range — choppy markets manufacture false breaks; use the trend and volume as a filter.
  • No stop at the broken line — failed breakouts reverse hard.
  • Chasing far past the arrow — enter at the break or retest, not three bars later.
  • Ignoring the Donchian trail — the opposite line is a built-in exit.

Video script outline (for your WeTradePro tutorial)

  1. Hook: "New 20-day high. That's a signal that built fortunes."
  2. Show the channel and the break arrow.
  3. Entry on the close vs the retest.
  4. Stop at the broken line.
  5. The Donchian trail exit (opposite channel).
  6. Filtering false breaks in a range.
  7. Recap + "import link in description."

Educational analysis, not financial advice.

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