Mastering the Breakout and Retest Strategy on TradingView: A Complete Pine Script Guide

//@version=5
strategy("Pineify Breakout and Retest Strategy", overlay=true, initial_capital=10000, default_qty_type=strategy.percent_of_equity, default_qty_value=10)

// --- Inputs ---
lookback = input.int(20, "Pivot Lookback Period", minval=5, help="Number of bars to identify pivot highs/lows")
retest_threshold = input.float(0.1, "Retest Threshold (%)", minval=0.01, step=0.01, help="How close price must get to the level to count as a retest")
atr_length = input.int(14, "ATR Length for SL/TP")
risk_reward = input.float(2.0, "Risk/Reward Ratio")

// --- State Variables ---
var float res_level = na
var float sup_level = na
var bool breakout_long = false
var bool breakout_short = false
var int breakout_bar = 0

// --- Level Identification ---
ph = ta.pivothigh(high, lookback, lookback)
pl = ta.pivotlow(low, lookback, lookback)

if not na(ph)
    res_level := ph
if not na(pl)
    sup_level := pl

plot(res_level, "Resistance", color=color.red, style=plot.style_linebr)
plot(sup_level, "Support", color=color.green, style=plot.style_linebr)

// --- Breakout Logic ---
if ta.crossover(close, res_level) and not breakout_long
    breakout_long := true
    breakout_bar := bar_index
    breakout_short := false

if ta.crossunder(close, sup_level) and not breakout_short
    breakout_short := true
    breakout_bar := bar_index
    breakout_long := false

// --- Retest and Entry Logic ---
atr = ta.atr(atr_length)
long_retest = breakout_long and low <= res_level * (1 + retest_threshold/100) and close > res_level
short_retest = breakout_short and high >= sup_level * (1 - retest_threshold/100) and close < sup_level

// Reset breakout if too much time passes without a retest (e.g., 20 bars)
if bar_index - breakout_bar > 20
    breakout_long := false
    breakout_short := false

// --- Execution ---
if long_retest and strategy.position_size == 0
    sl = res_level - (atr * 1.5)
    tp = close + (close - sl) * risk_reward
    strategy.entry("Long", strategy.long, comment="Breakout Retest Long")
    strategy.exit("Exit Long", "Long", stop=sl, limit=tp)
    breakout_long := false // Reset after entry

if short_retest and strategy.position_size == 0
    sl = sup_level + (atr * 1.5)
    tp = close - (sl - close) * risk_reward
    strategy.entry("Short", strategy.short, comment="Breakout Retest Short")
    strategy.exit("Exit Short", "Short", stop=sl, limit=tp)
    breakout_short := false // Reset after entry

// Visual Cues
plotshape(long_retest, "Long Retest", shape.triangleup, location.belowbar, color.green, size=size.small)
plotshape(short_retest, "Short Retest", shape.triangledown, location.abovebar, color.red, size=size.small)