The Double Support and Resistance Breakout forex indicator draws two lines of support and two lines of resistance on the Metatrader 4 chart.
The indicator displays the 2 most significant support and resistance levels on the chart based on the previous trading day high/low levels.
It’s a great S&R indicator for easy breakout trading!
- A bullish breakout occurs when price closes above the upper resistance line.
- A bearish breakout occurs when price closes below the lower support line.
The indicator can be used to trade simple breakouts on the shorter timeframes as well as on the larger timeframes.
For breakout scalping on M5 charts, it’s highly recommended to use the indicator during the London and New York trading sessions.
The EUR/USD 1-Hour chart below displays the Double Support and Resistance Breakout Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Double Support and Resistance Breakout MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Initiate buy order when the price bar breaks and closes above the indicator’s upper red resistance line from below. A protective stop-loss should be placed below the most recent support level.
Sell Signal: Initiate sell order when the price bar breaks and closes below the indicator’s lower red support line from above. A protective stop-loss should be placed above the most recent resistance level.
Trade Exit : Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: support | resistance | Breakout
Copy and paste the support-resistance-indicator-2.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)