The Trend Lines Day forex indicator for Metatrader 4 is a great price action based trend line breakout indicator.
This indicator draws only two trend lines on the chart, one trend line to buy above and one to sell below.
As can be seen on the GBP/USD H1 chart below, the resistance trend line is colored red while the support trend line is colored magenta.
How to trade trend line breakouts?
For buy trades: wait until price breaks and closes above the resistance trend line. This is the signal to go long.
For sell trades: wait until price breaks and closes below the support trend line. This is the signal to go short.
The GBP/USD H1 chart below displays the Trend Lines Day forex indicator in action.
Basic Trading Signals
Signals from the Trend Lines Day forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade when price breaks and closes above the red resistance trend line. Place stop-loss 1-3 pips below the most recent support level.
Sell Signal: Open sell trade when price breaks and closes below the magenta support trend line. Place stop-loss 1-3 pips 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: Variable (nPeriod, Limit) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Trend Line
Copy and paste the trendlinesday-indicator.ex4 indicator 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)