SDX Zone Breakout MT4 Indicator - Free MT4 Indicator

SDX Zone Breakout MT4 Indicator – Free MT4 Indicator

The SDX Zone Breakout MT4 Indicator is based on price breakout. A breakout is defined as an area where price action has moved beyond the boundaries of a defined range of prices. Usually, such a range is defined by a support and a resistance. For this strategy, the SDX Zone Breakout.ex4 indicator looks for areas where price highs and lows can be delineated to form resistance and support zones respectively. What is traded here is a breakout of price action from these zones. If you like automated trading solutions that work, then you gotta check out this PROVEN MT4 solution.

SDX Zone Breakout MT4 Indicator Trading Rules

The strategy is simple as the SDX Zone Breakout indicator does most of the work for the trader. It traces support and resistance areas to form a range. We therefore look for where price will break above or break below the “zone”.

Long Trade Entry Rules

The long trade entry signal occurs when the following is seen on the charts:

  • Price action candle has moved above the solid red line and closed above it.
  • The long trade entry is made when the next candle either pulls back on the solid red line, or bounces off the dotted red line located slightly above the solid red line. The chart example is shown below.

Stop Loss and Take Profit Settings

The stop loss is set a few pips below the solid red line which now acts as a support. You should watch to see where the preceding candles have made lows so your stop loss is not too tight as to potentially get triggered by errant price action. That would be very frustrating if price action eventually goes in the anticipated direction.

The Take Profit point should be set at the nearest resistance level. The trader may have to scroll back on the chart using the direction buttons on the computer to see where price previously formed a resistance. We see this in the chart example.

Short Trade Entry Rules:

  • Price action candle has moved above the solid green line and closed below it.
  • The short trade entry is made when the next candle either pulls back on the solid green line, or bounces off the dotted green line located slightly below the solid green line.

SDX Zone Breakout MT4 Indicator Trading RulesSDX Zone Breakout MT4 Indicator Trading Rules

In this chart, we can see two short trade setups and one long trade setup.

Stop Loss and Take Profit Settings

The stop loss is set a few pips above the solid green line which now acts as a resistance to price action. You should watch to see where the preceding candles have made highs so your stop loss is not too tight as to potentially get triggered by errant price action.

The Take Profit point should be set at the nearest resistance. The trader may have to scroll back on the chart using the direction buttons on the computer to see where price previously formed a support. Otherwise, the trader may simply use discretionary tactics in choosing the area to close the trade in profit.

Precaution when Trading with the SDX Zone Breakout MT4 Indicator

It is very essential that the trader identifies the breakout candle as this forms the basis for the trade. Fortunately, the programmers of the SDX Zone Breakout indicator have done all the hard work here by inserting a code which draws a black circle exactly at the breakout point. This dot appears when the signal candle closes. So this way, the trader knows by sight when a candle has broken above the red line(s) for a long entry, or when the candle has broken to the downside below the green lines for a short entry.

The best entries are made using the Limit orders. So the long entry is actually a BUY LIMIT order while the short entry is a SELL LIMIT order. In both cases, the price used for the limit entries is the price corresponding to the red lines or the green lines.  All trades should be protected with trailing stops the moment price action is seen to show a good advance into profit territory.

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.

Trading with Candlestick Breakout Patterns Video Tutorial


Trading with Candlestick Breakout Patterns


SDX Zone 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.

Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.

And if you can, you really should invest in a proven MT4 Expert Advisor to help you generate some profit on full autopilot.

We highly recommend this powerful MT4 Expert Advisor.

Visit our Free MT4 Indicator Download page.

We hope you have enjoyed this post as much as we have creating it.

Good luck and thank you for your readership.


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