Hi Lo Breakout Channel Metatrader 4 Forex Indicator
The Hi Lo Breakout Channel MT4 indicator is a typical indicator used to trade range breakouts.
You can choose the start hour and end hour of the trading channel.
The indicator draws two lines on the Metatrader 4 chart:
- The upper line marks resistance.
- The lower line marks support.
The basics of breakout trading are rather simple:
- Buy the pair when it breaks and closes above the upper resistance line.
- Sell the pair when it breaks and closes below the lower support line.
In order to yield better performance from breakout trading, trade breakouts in the direction of the overall trend. Often, breakouts against the trend are short-lived.
In an uptrending market, trade breakouts above resistance and ignore breakouts below support.
Conversely, in a downtrending market, trade breakouts below support and ignore breakouts above resistance.
The EUR/USD 1-hour chart below displays the Hi Lo Breakout Channel Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Hi Lo Breakout Channel MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade when the price bar breaks and closes above resistance. Be sure the overall trend is upward. Place a protective stop-loss below short-term support.
Sell Signal: Open a sell trade when the price bar breaks and closes below support. Be sure the overall trend is downward. Place a protective stop-loss above short-term support.
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 (start hour, end hour) 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 high-low-channel.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)