Breakout Box Indicator, Support and resistance indicator. Auto breakout indicator.

A breakout trading is one of the most traded techniques in the forex industry because of its potential to deliver massive pips. The breakout box indicator for MetaTrader is the best forex indicator for trading breakouts. The indicator identifies and automatically draws a rectangle box around a significant support or resistance zone.

This MT4 indicator does the technical analysis on timeframes that are less than 4hours. It doesn’t draw the rectangle boxes on timeframes that are higher than H1. It is also worthy to state that the breakout box indicator works best on the H1 timeframe. Additionally, the indicator can also be incorporated into different trading styles such as scalping, day, and intraday trading.

The indicator can potentially add more value to your trading because it helps you to easily identify a valid support or resistance level. With such information, you can make trading projections and be prepared for further price movement.

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 what the market is trying to do.

Breakout Box Indicator BUY/SELL Signals

The picture above is a GBPUSD chart that shows how the breakout box indicator looks on a forex dashboard. The annotations on the other hand demonstrate how to find a high probability BUY/SELL signal with the breakout box indicator.

This MT4 indicator is so powerful that you can use it in isolation to trade successfully. It doesn’t need any supporting indicators or deep technical analysis skills to pick viable setups. Regardless, understanding price action can further increase your winnings.

You can use this indicator to trade in two ways. The first approach is to study the overall trend of the market bias. Then wait for 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 is illustrated with the chart sample above. 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.

Conclusion

The breakout box indicator for MT4 is a trading tool that needs to be on your forex chart. It is very efficient when used appropriately. Nonetheless, ensure you stick to good money management as no indicator/strategy is insulated from false signals. 

INDICATOR SETTINGS

PeriodBegin: This shows the beginning of the period’s value.

PeriodEnd: This shows the end of the period’s value.

BoxEnd: Value to end the box.

BoxHLColor: Displays the HL color of the box.

BoxPeriodColor: Displays the period color of the box.