JL Swing Signal - {UT}

Hello all, This signal is created based on Jesse Livermore's formula, I have tried to enhance it by including other elements to make the experience better and rewarding.

1. Swing Highs and Swing Lows:

>Identifies a swing high when the current high is higher than the highs of the specified number of bars to its left and right.
>Identifies a swing low when the current low is lower than the lows of the specified number of bars to its left and right.
>Also marks the confirmed swing highs (SH) and swing lows (SL) on the chart for visual reference.

2. Breakout Confirmation:

> Finds out when the closing price crosses above the last confirmed swing high.
> Ensures that the breakout is sustained for the defined number of confirmation bars to filter out false breakouts.
>BuySignal: A buy signal is generated only when both the breakout and hold conditions are met.

3. Trend Filter:

>EMA Calculation: A 50-period EMA is used to filter trades in the direction of the existing trend. Trades are only taken in the direction of the trend.
>Ensures buy signals are only triggered if the price is above the EMA, indicating an uptrend.

4. Volume Confirmation:

Volume Moving Average: A 20-period Simple Moving Average (SMA) of volume is calculated to compare current volume levels.

5. Profit Target:

ATR-Based Profit Target: A dynamic profit target is set based on a multiple of the ATR. This helps capture profits when the market moves in the trade's favor.

6. Exit Strategy:

Stop Loss and Profit Target: The script exits the trade if the price hits the stop loss or the profit target.

Interpretaion:

Buy Signals: Displayed with a green "BUY" label.
Stop Loss and Profit Target: Plotted as orange and green lines, respectively.
Exit Signals: Displayed with a red "EXIT" label when the exit conditions are met.