Two Zones Strategy - Nested Zone Breakout

📌 Two Zones Strategy – Nested Zone Breakout

This indicator identifies two consecutive contraction zones (Nested Zones) and waits for a clean candle-close breakout to confirm strong momentum entry.
It is designed for swing/positional traders who want structured entries with clear risk-reward levels.

🔍 Concept (How it Works – High-Level Explanation)

This strategy tracks two back-to-back compression zones:

1️⃣ Zone 1 High & Zone 1 Low
2️⃣ Zone 2 High & Zone 2 Low

When price forms two tight zones consecutively, it indicates:

Market accumulation

Low volatility

Possible big expansion move (breakout)

After the second zone completes, the tool:

✔ Draws Zone High & Low
✔ Waits for candle-close breakout above the zone
✔ Marks a clean Entry level
✔ Auto-detects Stoploss (2nd Zone Low )
✔ Calculates Target using fixed Reward Ratio

(Protected logic internally detects the zones, filters noise structures, and confirms breakout strength.)

🎯 Entry Rule

A valid breakout happens only when:

Candle closes above Zone High

Wicks are ignored; only candle-close matters

Entry = Breakout candle close price

This ensures momentum confirmation before entering a trade.

🚫 Stop Loss

SL = 2nd Zone Low

🎯 Target Calculation (1 : 2 Reward Ratio)

Target =2nd Zone size × 2
Zone size = (Zone High – Zone Low)

Example:
If zone size = 1 point → Target = 2 points

⭐ Strategy Highlights

✔ Two-zone structure = Higher probability breakouts
✔ Very clear entry confirmation (no wick noise)
✔ logical stoploss
✔ Works best during momentum moves
✔ Beginner-friendly, rule-based system
✔ No guesswork or discretion
✔ Suitable for swing & positional trades

🧲 Best Timeframes

✔ Weekly (1W) – Most accurate
✔ Daily (1D) – Works w

Avoid: 5m / 15m in volatile stocks.

👥 Who Can Use This

Swing traders

Positional traders

Breakout traders

Higher timeframe followers

(Manual Backtesting is supported, allowing users to analyze past performance with accuracy.)

🔒 Why This is Published as Protected

The core logic uses a proprietary zone-detection approach with custom breakout filtering.
To preserve originality and prevent misuse, only high-level explanation is provided while keeping the internal logic protected. same rules ni telugu lo ivvandi