A breakout trading is one of the most popular techniques in the forex industry because of its potential to deliver great and stable results. The “Breakout Box” indicator for MetaTrader4/MetaTrader5 is the best forex indicator for trading breakouts to my mind because of its simplicity and efficiency.
Indicator Description
The “Breakout Box” indicator identifies and automatically draws rectangle boxes around significant support or resistance zones. The indicator can potentially add a lot of value to your trading because with such information you can make trading predictions and be prepared for further price reversals.
The indicator does its technical analysis and draws the boxes on the following timeframes: M1, M5, M15, M30 and H1. It is also worth mentioning that the indicator works best on the H1 timeframe. What is more, the indicator can also be incorporated into different trading styles such as scalping, intraday and swing trading.
Breakout Box Indicator Installation
1. Unzip the file you’ve downloaded.
2. Find the file that is called “Breakout Box.ex4/.ex5” and copy it.
3. Open your MT4/MT5.
4. Go to “File – Open Data Folder – MQL4/MQL5”.
5. Paste the file into the “Indicators” folder in MQL4/MQL5.
6. Restart your MT4/MT5.
After the installation, your MT4 trading chart will look like this:
Basic Trading Signals
You can use this indicator to trade in two ways. The first approach is to study the overall trend and then wait for a price to break out of the indicator’s box and close in the direction of the trend before taking a BUY/SELL entry. For instance, in an UPTREND market, you pick a BUY trade after price breaks and closes above the indicator’s box.
The second approach which is a better way of using the breakout box indicator to my mind is illustrated in the chart below. To get high probability trade setups, wait for a candlestick to break out of the indicator’s box. Then wait for the NEXT candlestick to retest the box and show a sign of visible rejection (long wick). Take your entry in the direction of the breakout immediately after the second candle that got rejected ends.
The logic behind this second approach is simple. Once price breaks out of a support or resistance zone and is immediately followed by a candlestick that gets rejected implies that the breakout zone is very strong and price would likely go in that direction.
My Conclusion on the Breakout Box Indicator
To my mind, the “Breakout Box” indicator would be of immense benefit to novice traders that may not know how to spot significant support or resistance levels. Of course, expert traders are not left out as the indicator also makes technical analysis easy for them. You only need a glance at your chart to know where the market is heading to.
P.S. Have problems with installation? Email me at olivermurphy@altraforex.com or support@altraforex.com
I would love to help!
P.S.S. Check out software by Altra Forex Group here
Muchas gracias.
Hi! I’m your loyal customer and a happy Forex Aurum user. Please help me decide what to buy: Oracle Scalper or your new Bizon scalper? Thank you
Hi Gabriel! I think Forex Aurum and Bizon Scalper will compliment each other nicely because they are for different trading strategies. Moreover, Bizon Scalper is my most advanced software for scalping, you will benefit greatly with it on the lower timeframes