BTS - Breakout, Trend, Scalping

Want to find Breakouts? Trends? or find scalping opportunities? BTS is a multifunctional trading tool that can help us trade smarter.

Find Insights.

At first, BTS can look a bit unstructured with non -regular moves. It can be hard to grasp how to use the indicator. It will be all clear after reading this.

Time based

The default version of the indicator is based on time, which means that the indicator uses real-time price data combined with historical levels data to find the trend and oversold/overbought areas. This means that once time passes, the historical behavior of the indicator will differ (slightly) from the real-time behavior. Some sort of repainting.

But Hey! We designed the indicator to behave like this for a reason! Let us explain why.

If you want to use non-time based you can enable it in the indicator! (The indicator will not repaint then!)

Why time based? (The trade-off between having a slightly repainting function vs not having it).

Just, first of all, repainting is not always an issue or a problem, it can actually enhance the performance of an indicator. However, the word "repainting" has with no doubt got a negative meaning and it's a word everyone uses without really knowing what's behind the behavior. Remember that there are many ways an indicator can repaint.

The reason

The reason for having a time-based BTS function is that the indicator responses much quicker to price moves at certain key price areas. The indicator will fluctuate around these areas in real-time.

Which is a good thing when trying to find retracements/pullbacks in trends. The indicator will in real-time push much faster to the lower or the upper band to indicate a possible area of retracement, reversal, or oversold/overbought. whatever we want to call it.

Let's say the market is trending, and we try to find a good entry point within that trend. We're willing to enter at the next pullback. Then we can use the time-based BTS indicator to get quite accurate entry points, due to its quickness to respond to the current price action.

Since a pullback/retracement in a trend is not always a significant price move we need an indicator that can identify it. Our Time-base BTS does it for us!

Non-Time base

The non-time based will not react as quick around historical levels, and will not take into account the real-time price action/fluctuations around these levels. So it will only update it values on closing bars, and does not take into account how price reacts to levels. Only if the price is above or under the level after closing bars.

So with that said, the Non-Time Base can be better to use if we want to identify the trend.

However, sometimes we get significant moves around historical levels, both the Time-Based and the Non-Time base will produce similar results.

When using Non-Time based

Make sure to enable "Upper & Lower Boundary" when using the Non-Time Based. It will make the indicator into an oscillator (overbought/oversold), rather than a trend/impulse indicator.