New breakout Point Indicator Aims to Predict 2026 Financial Security

This article introduces the "Explosion Point" sub-chart indicator, which helps investors identify potential investment opportunities and mitigate risks through volume-price relationships and moving average arrangements. The article elaborates on the indicator's principles and applications through case studies, logical analysis, and usage tips. It aims to provide investors with a more scientific and rational investment tool to safeguard family wealth. The indicator focuses on identifying moments of significant price action and provides signals based on predefined criteria related to volume, price, and moving averages.

Late at night, when the world is quiet, have you ever found yourself staring at stock charts with frustration, lamenting missed opportunities? Imagine having a tool that could serve as an experienced navigator, lighting the way before the storm hits. In 2026, the "Breakout Signal" indicator could become your family's financial guardian.

The Starting Point: Two Trading Records, Two Different Lives

In Nanjing, an ordinary investor we'll call "Melon" experienced a story that might sound familiar. In 2025, Melon bought a stock based on a simple feeling that "it might rise." Instead, the market proved merciless, with consecutive drops resulting in an 18% loss. When his father required emergency surgery, Melon had to sell his property to cover medical expenses.

Meanwhile, Melon's investment group friend "Tomcat" used the "Breakout Signal" indicator to precisely capture a rising opportunity in another stock from the same sector, achieving a 31% return in just seven days. Tomcat's profit screenshots created quite a stir in the group and prompted Melon to reevaluate his investment approach.

Melon's story isn't unique—it reflects the struggles of countless investors navigating markets with limited information and technical knowledge. Tomcat's success demonstrates how scientific tools can significantly improve investment outcomes.

The "Breakout Signal" Explained: Simplifying Investment Logic

The "Breakout Signal" indicator isn't some mysterious black box technology—it distills complex market information into three intuitive building blocks:

Foundation: The Vanguard of Capital. When a stock price reaches its 20-day high, it signals that capital has begun entering the market—like scouts surveying territory before the main force advances.
Pillar: Volume-Price Confirmation. A daily gain ≥3% with moderately increased trading volume indicates genuine market recognition, reducing the risk of temporary spikes. This serves as the structural support for the investment thesis.
Roof: Moving Average Alignment. When short- and medium-term moving averages form an upward pattern, it confirms the stock is in an established uptrend—like sailing with favorable winds.

When these three conditions align, the indicator displays a distinctive red dot labeled "Breakout"—not as a buy command, but as a beacon suggesting "the winds are shifting here."

Financial Security: The Power of Preparedness

Another Nanjing investor, "North," incorporated the Breakout Signal into her premarital financial planning. She and her partner agreed to jointly save 3,000 yuan monthly as a "family risk fund," conduct annual health checkups, and only invest in understandable stocks. Her partner added one rule: "When signals appear, maximum 20% position—the rest stays for living."

North's approach embodies true financial security—not blind market optimism, but measured risk awareness and control. When charts turn red late at night, having someone say "Don't worry, we planned for this" becomes the most reassuring comfort.

Indicator Code: Illuminating Your Financial Path

The complete "Breakout Signal" indicator code is provided below for immediate use in Tongdaxin software. The unencrypted source allows seamless mobile and desktop synchronization.

  {Breakout Signal—Secondary Chart Indicator Source: Xiangbo Software}
  
  N:=20; {Recent high period}
  
  M:=5; {Average volume period}
  
  PriceChange:=(C-REF(C,1))/REF(C,1)*100;
  
  HighPrice:=HHV(H,N);
  
  VolumeRatio:=VOL/MA(VOL,M);
  
  MAAlignment:=MA(C,5)>MA(C,10) AND MA(C,10)>MA(C,20);
  
  BreakoutCondition:=C>HighPrice*0.98 AND PriceChange>=3 AND VolumeRatio>1.2 AND MAAlignment;
  
  DRAWICON(BreakoutCondition,1,1); {Icon 1: Red dot}
  
  STICKLINE(BreakoutCondition,0,2,2,0),COLORRED;
  
  DRAWTEXT(BreakoutCondition,2.5,'Breakout'),COLORWHITE;

Practical Usage Tips

When signals appear, avoid chasing prices—first add to watchlists and consider entering during pullbacks to moving averages.
Set the signal day's low as your stop-loss. Investment discipline outweighs blind conviction.
Adjust parameter N for market conditions: decrease to 15 during volatility for sensitivity, increase to 25 in bull markets to filter noise.

The Larger Picture: Risk Management for Family Protection

After achieving profits using the Breakout Signal, Melon's first action was purchasing commercial health insurance for his parents. He noted that while he once invested to "earn more," he now prioritizes "losing less"—because reduced losses mean proactively managing family risks.

The 2026 markets will bring uncertainty. But when that red dot appears on your charts, remember it represents more than an opportunity—it's responsibility and commitment to your family's future.