Forex High Low Breakout MT4 Indicator – Free MT4 Indicator

The Forex High Low Breakout MT4 Indicator is a very simple trading indicator which plots ‘x’ day’s high and low levels on the charts. Useful for traders who prefer to trade the break outs, the High Low breakout indicator is simple and can be a great addition to existing trading strategies.

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High Low Breakout MT4 Indicator – Settings

The settings are relatively simple, where the option is to set the break out number of days. You can choose from 1 day and go as far out as you would like to. The picture below shows the indicator settings that can be configured.

Once the value is selected, the indicator plots two lines, the green line marking the high of the ‘X’ number of days and the red line marking the low of the ‘X’ number of days. The values are also shown on the chart on the top left corner of your screen.

The chart below shows the High Low Breakout MT4 Indicator with 1 day used on a 30 minute chart. As you can see, the indicator plots the previous day high and low on the chart including the values.

High Low Breakout MT4 Indicator

High Low Breakout MT4 Indicator – Trading Rules

There are many strategies governing the High/Low breakout method. Some traders prefer to buy on a break of the high and sell on the break of a low, which typically depicts a trend. In other words, in an uptrend, prices tend to break out above the previous day high and in a downtrend, prices tend to break below the previous day’s lows.

Other methods to trade the High Low Breakout MT4 Indicator is to look at the daily candlestick chart. When there is a bullish or a bearish engulfing, traders can take their positions accordingly on the break of the previous day’s high or a low, which is nothing but multi-time frame analysis.

One of the drawbacks of the High Low Breakout MT4 Indicator is that you can use only one instance of the indicator on the chart. For example, if you want the indicator to plot 1 day high low and a 5 day high low, you will need to manually note the levels on the chart. The chart below shows how this can be achieved, where we first make use of a 5 day high low value and then use the horizontal line tool to mark these levels and then we switch to a one day high/low value.

High Low Breakout MT4 Indicator – Key Support and Resistance Level

The thick horizontal line shows the 5 day high and low while the thin horizontal lines are the 1 day high and low. In the above example, note how the 1 day and 5 day low are clustered close together, thus indicating a key support level. A typical way to trade this set up would be to buy on a bullish candlestick pattern off the support level, targeting the one day high, or to sell the support breakout.

Traders can also make use of moving averages, or oscillators to time their entries or use pivot points as well to target the intraday support and resistance levels.

To make it easier, here’s the summary of the trading rules for High Low Breakout MT4 Indicator

Entry Rule
When the price breaks above key resistance level, it’s time to go long.
When the price breaks below key support level, it’s time to go short.

Exit Rule
Target 30 pips for each trade.

Stop Loss
For long position, use the session low as stop loss.
For short position, use the session high as stop loss.
Be aware that if the session candle is very long, then your risk is higher.
You can either skip the trade or enter a smaller lot size.
It’s all about risk management first, profit second.

Time Frames
Technically speaking, you can use this indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.

High Low Breakout MT4 Indicator – Simple Breakout Strategy

If you have read to this point then you have learnt this powerful strategy – all you need now is to just practice this strategy on a demo account now. The High Low Breakout MT4 Indicator can at best be used to help traders plot the key high and low levels in price, which can then be used in conjunction with a trend based trading strategy or traders could employ intraday scalping strategies to trade based off the support and resistance levels marked by the high and the low lines plotted by the High Low Breakout MT4 Indicator.

High Low Breakout MT4 Indicator – Download

We have provided this powerful trend trading indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.

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