True Three Soldiers Method (TTSM) - Breakout Confirmation

Indicator Overview
True Three Soldiers Method (TTSM) - Made in China is a quantifiable evolution beyond traditional candlestick pattern recognition. It replaces subjective visual analysis with an objective, data-driven momentum system featuring smart breakout confirmation.

Core Innovation: Beyond Traditional Pattern Recognition
Traditional three-soldier patterns merely check for three consecutive bullish/bearish candles. TTSM goes much deeper:

1. Dual Signal System: It identifies both single-candle and three-candle momentum signals, providing earlier warnings of potential trend changes.
   
3. Quantifiable Strength Metrics: Each signal must meet customizable thresholds for both absolute price movement (percentage change) and relative efficiency (close-to-open distance relative to total range).
   
5. Breakout Confirmation Logic: The real innovation lies in the "True Signal" mechanism. Preliminary signals are tracked, and only when price breaks above the highest high of recent bullish signals (or below the lowest low of recent bearish signals) does it trigger a confirmed entry signal. This eliminates false breakouts and ensures you're trading with confirmed momentum.
   

• Absolute Strength: Quantifies momentum via percentage price change.
  
• Relative Strength: Measures candlestick efficiency (close-to-open vs. total range).
  
• True Signal Validation: A "True" entry signal triggers only after price confirms momentum by breaking above/below a cluster of recent preliminary signals, filtering out false moves.
  

Dual-Layer Signal System
Key Features

• 🔴 Amber Signals (Preparation): Single-candle or three-candle patterns that meet strength criteria. These indicate potential momentum building and can be used for preparation or light positioning.
  
• 🟢 Green Signals (True Breakout): Triggered only when price breaks above/below the recent signal cluster extremes. These represent confirmed momentum and are ideal for main entries.
  
• 🎚 Fully Customizable: Every parameter—absolute/relative strength thresholds, lookback periods, and average calculations—can be adjusted to match your trading style and market conditions.
  
• 📊 Clear Visual Feedback: Color-coded labels and reference lines make signal identification instant and intuitive.
  

Parameter Customization Guide

• All parameters are organized in intuitive groups:
  
• Strength Thresholds: Adjust absolute (%) and relative (%) strength requirements for both long and short signals.
  
• First Signal Thresholds: Special thresholds for when a signal is the first in the lookback period.
  
• Lookback & Averages: Control how many bars are considered for signal tracking and moving averages.
  

Strategic Application

• Preparation Signals: Use amber signals to prepare for potential moves, set alerts, or enter with smaller positions.
  
• True Signals: Green/red "True" signals indicate confirmed momentum—ideal for main entries with proper risk management.
  
• Combination Strategy: Pair TTSM with trend indicators (like Supertrend) for higher probability trades—only take True Signals in the direction of the main trend.