Break & Retest 369

Break & Retest 369

The Break & Retest 369 is a high-precision technical indicator designed for price action traders who specialize in market structure shifts and "S/R Flip" (Support becoming Resistance and vice versa) strategies. Unlike standard oscillators that lag behind price, this tool focuses on **horizontal price levels** that have historically acted as turning points, providing visual zones where the market is likely to offer a "second chance" entry.

Core Philosophy

The script is built on the principle of Market Memory. In a trending market, a "Breakout" signifies a change in order flow. However, smart money often returns to the point of origin (the breakout level) to fill remaining orders or test the strength of the new trend. This indicator automates the identification of these "Retest" zones, which are often the highest-probability entry points for trend continuation.

How It Works: The Logic

The indicator follows a strict, multi-step calculation process:

1. Swing Point Identification: It utilizes a Pivot High/Low** algorithm. It scans for "peaks" and "valleys" that are isolated by a specific number of bars on either side (defined by the `Lookback` input).
2. **Breakout Detection:** The script monitors these pivot levels. A **Buy Zone** is triggered only when the price achieves a clean **Close** above a previous Pivot High. Conversely, a **Sell Zone** is triggered by a **Close** below a previous Pivot Low.
3. **Zone Construction:** Once a break is confirmed, the script draws a box centered exactly at the price level of the broken pivot.
4. **Forward Projection:** These zones are projected forward in time using the `Zone Extension` parameter, creating a visual "landing strip" for future price action.

### Key Features & How to Use It

* **Dynamic Support/Resistance Flips:** Green zones represent former resistance levels that are now expected to act as support. Red zones represent former support levels now expected to act as resistance.
* **Zone Customization:** Traders can adjust the `Zone Height (Ticks)` to account for market volatility or specific asset spreads (e.g., wider zones for XAUUSD, tighter for EURUSD).
* **Scannability:** The script helps traders filter out the "noise" of mid-range price movement and focus only on significant structural levels.

### Default Configuration

To get the most out of the **369** logic, the indicator comes pre-configured with the following defaults:

* **Swing Detection Lookback (18):** Optimized for medium-term structure, avoiding "micro-pivots" that lead to false signals.
* **Zone Height (1 Tick):** Focuses on the precise price point of the pivot for maximum accuracy.
* **Zone Extension (90 Bars):** Projects levels far enough to catch "deep" retests that occur several hours or days later.

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### Pro Tip for Traders

Wait for price to return to a **Buy Zone** and look for a bullish rejection candle (like a pin bar or engulfing candle) before entering. This combines the "Where" (the zone) with the "When" (the price action confirmation) for a robust trading system.

Would you like me to add a **"Mitigation"** feature that automatically deletes or fades the zone once the price has successfully touched it?