Breakout Zones Metatrader 4 Forex Indicator
The Breakout Zones MT4 forex indicator works well for breakout trading on any currency pair and time frame.
The Breakout Zones indicator for Metatrader 4 draws 2 red lines on the Metatrader 4 chart.
The upper red line is called resistance while the lower red line support.
How to trade the indicator
A buy breakout trade occurs when price exceeds and closes above the upper red resistance line. This is the signal to go long.
A sell breakout trade occurs when price exceeds and closes below the lower red support line. This is the signal to go short.
Tip: Trade breakouts in the direction of the overall trend
Overall trend up? Trade resistance breakout signals (buy) and ignore support breakout signals (sell).
Overall trend down? Trade support breakout signals (sell) and ignore resistance breakout signals (buy).
The GBP/USD 30-Minute chart below displays the Breakout Zones Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Breakout Zones MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when price crosses and closes above the upper red resistance line.
Sell Signal: Open sell trade position when price crosses and closes below the lower red support line.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Pips for entry, Local time zone) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the breakout-zones.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)