Swing Trading System v5 - Dynamic SL/Targets with Labels

The Swing Trading System v5 is a fully-automated swing-trend framework designed to identify high-confidence breakout entries, generate dynamic stop-loss and target levels, and visually label actionable trade zones on the chart.
It adapts to market conditions using structure breaks, EMA trend filters, candle confirmation, and volume expansion signals.

Core Features
1. Swing Breakout Engine (Structure-Based)

The system detects short-term swing highs/lows and evaluates whether price has broken out above resistance or broken down below support.
A directional bias is established using a structure-based confirmation variable and automatically updated trailing stop logic.

2. Trend Filter (EMA 20/50/200)

To avoid counter-trend trades, the engine uses:

EMA-200 for primary trend direction

EMA-20 and EMA-50 for near-term momentum
Signals align only when structure breaks AND the major trend confirm each other.

3. Candle Confirmation

Entry signals require classical reversal momentum patterns:

Bullish Engulfing for long trades

Bearish Engulfing for short trades

This filters out weak structure breaks and ensures institutional momentum.

4. Volume Confirmation

Volume must exceed a configurable SMA-based threshold.
This prevents false signals during low-liquidity or consolidation phases.

Signal Logic
Long Signal Triggers

A Buy signal is printed when:

Price crosses above the dynamic trailing stop (swing resistance)

Price is above EMA-200 (bull trend)

Candle forms a bullish engulfing confirmation

Volume > SMA(10) × Multiplier

Short Signal Triggers

A Sell signal occurs when:

Price crosses below the dynamic trailing stop (swing support)

Price is below EMA-200 (bear trend)

Candle forms a bearish engulfing confirmation

Volume expansion confirms downside momentum

Dynamic Stop-Loss & Profit Targets

When a signal triggers, the system automatically calculates:

Stop-Loss (SL):

Long trades: last swing low

Short trades: last swing high

Target 1 (TP1): 1.5R relative to swing distance

Target 2 (TP2): 3.0R for trend continuation moves

SL, TP1, and TP2 are displayed on-chart using extended line plots and right-side labels for clean visualization.

Labels for old signals are automatically deleted to keep the chart uncluttered.

Visual Components

The indicator provides:

BUY/SELL signal labels

Dynamic SL, TP1, TP2 lines with color coding

SL/TP labels positioned at the end of each new trade

Clean breakout detection based on structural pivots

All elements update automatically as new swings form.

Intended Use

This system is built for:

Swing Traders

Systematic Discretionary Traders

Trend Followers

Breakout/Momentum Traders

Works well on:

Stocks

Crypto

Forex

Indices

Commodities

Optimal timeframes: 1H, 4H, Daily, Weekly

Summary

The Swing Trading System v5 provides:

High-quality breakout entries

Trend-aligned signals

Volume-filtered confirmation

Automated risk-reward generation

Clean and dynamic chart labels

A complete, self-contained swing-trading solution for systematic execution and disciplined risk management.