Breakout trading is always an attractive feature especially for the forex scalpers and intraday traders. From the practical point of view, a breakout strategy is only profitable when you be able to avoid getting caught by the false breakouts.
You also need to determine the breakouts with a greater probability of success to progress in the long run. Intraday Channel Breakout Indicator helps you out with such tasks and puts you in a comfortable trading atmosphere despite the uncertainty of breakout trades.
Intraday Channel Breakout Indicator is suitable for newbie forex breakout traders. It suits all sorts of timeframe charts of your MT4 platform and also supports trading all kinds of forex currency pairs in the market.
Intraday Channel Breakout Indicator Overview
Download and install the indicator on your MT4 terminal. Once you’re done, find your trading chart like the following image:
Intraday Channel Breakout Indicator Explanation
Intraday Channel Breakout Indicator plots a tri-band breakout envelope for determining the trade opportunities. The upper band is the breakout resistance and the lower band works as the breakout support.
The mid-level represents the main support level of the indicator. In the first place, you need to determine the possible direction of the price movements by observing the intention of the price to hold on above or below the main support level.
For a bullish momentum, look for a long opportunity when price breaks above the breakout resistance level successfully. For short entry, the price must hold below the main support level with a successful break below the current breakout support.
Intraday Channel: Buy Conditions
- Price keeps holding its position above the Main Support Level
- Price candle breaks and closes above the current Breakout Resistance level
- Buy triggers after the above conditions are met
- Set stop loss below the present Breakout Support Level
- Exit long or take profit whenever price returns back and closes below the Breakout Resistance area
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Intraday Channel: Sell Conditions
- Price keeps holding its position below the Main Support Level
- Price candle breaks and closes below the current Breakout Resistance level
- Sell triggers after the above conditions are met
- Set stop loss above the present Breakout Resistance Level
- Exit short or take profit whenever price returns back and closes above the Breakout Support area