Breakout Quality Engine
Know instantly whether a breakout is real or a fake-out
The Breakout Quality Engine (BQE) watches important price levels on your chart and tells you when price breaks through them — and more importantly, whether that breakout is real or likely to fail.
Every breakout gets a quality score so you can quickly see how much you should trust it.
This indicator works right out of the box. Just add it to your chart and it automatically monitors the most important price levels for you.
What It Does
The indicator tracks key price levels that traders watch closely:
- Previous Day High/Low — Yesterday's highest and lowest price
- Previous Week High/Low — Last week's range boundaries
- Previous Month High/Low — Last month's range (optional)
- Opening Range — The opening range of the New York session (optional)
- VWAP — The volume-weighted average price for the day (optional)
When price approaches and breaks through one of these levels, BQE evaluates the breakout and gives it a quality rating:
| Rating | What It Means |
|---|---|
| Elite | Exceptional breakout — multiple factors confirm this is a real move |
| Strong | Reliable breakout — several confirmations aligned |
| Mid | Decent breakout — proceed with some caution |
| Weak | Low confidence — consider waiting for more confirmation |
What You'll See on Your Chart
Signal Labels
Labels appear on your chart to tell you what's happening:
- Setup — Price is approaching an important level (heads up, something may happen)
- ACCEPT — The breakout is confirmed! Price broke through and is holding beyond the level
- RETEST — After breaking through, price came back to test the level and held — this is the highest-confidence signal
- FAIL / SWEEP — The breakout didn't work — price reversed back. This helps you avoid getting trapped
Bullish signals appear below the candle in green. Bearish signals appear above in red. Each label includes the quality score so you can see at a glance how strong the breakout is.
Level Lines
The indicator draws lines on your chart showing the important levels it's monitoring. The active level (the one price is closest to breaking) is highlighted more prominently.
Dashboard (Optional)
A compact panel that shows:
- Which trading session is active (London, New York, Asia)
- Current market zone (are we in a buying or selling area?)
- Active setups and their quality scores
- Nearest levels above and below price
How to Use
Add the indicator to your chart by searching for "Pagani" in TradingView's indicator menu. It starts monitoring key levels automatically.
Watch for "Setup" labels. These appear when price approaches an important level — it's your heads-up that a breakout attempt may be coming.
Wait for "ACCEPT" or "RETEST" signals. These confirm the breakout is real. The quality score tells you how confident to be — scores in the Strong and Elite range are the most reliable.
Pay attention to "FAIL" and "SWEEP" labels. These tell you a breakout attempt didn't work. If you see these, it's a warning that the level held and price may reverse.
Use quality scores to filter. Not all breakouts are created equal. Focus on Strong and Elite rated breakouts for the best results.
The Breakout Lifecycle
Every breakout goes through a natural progression, and BQE tracks each stage:
Approach — Price gets close to an important level. You get a Setup alert.
Attempt — Price crosses beyond the level. The indicator starts evaluating.
Accepted — Price holds beyond the level — the breakout is confirmed. This is your first entry opportunity.
Retest — Price pulls back to the broken level. If it holds (bounces off from the other side), that's the strongest confirmation — the old resistance has become new support (or vice versa).
If at any point the breakout fails (price crosses back), the indicator marks it as Failed or Sweep and moves on. No ambiguity.
Trading Tips
Alerts
BQE can notify you at every stage of a breakout so you don't have to watch the chart:
- Setup alerts — Price is approaching a key level
- Accepted alerts — A breakout has been confirmed
- Retest alerts — A broken level was retested and held
- Failed alerts — A breakout attempt failed
See the Alerts Setup guide for step-by-step configuration instructions.