MetaTrader5
Mastering the Breakout Bars Trend Indicator for MetaTrader 5
If you're looking to refine your trading strategy, the Breakout Bars Trend indicator for MetaTrader 5 might just be your new best friend. This tool serves as a clever alternative to traditional moving averages, helping you pinpoint trend directions more effectively. Think of it as a hybrid between a linear reversal and the iMovement indicator, but with a twist.The primary distinction lies in how the reversal parameter, or delta, is calculated. Instead of relying solely on the closing price, it utilizes the extremums—specifically the high and low points. The indicator identifies a reversal not just based on the delta, but also on what we call the breakthrough bar, which occurs when the price surpasses a specific level. A breakthrough bar is essentially one that closes above the previous bar's high or below its low. This isolation of such bars can be visualized as the formation of a new box on your chart, resembling three linear reversals.Recommendations:The main goal of the Breakout Bars Trend indicator is to help you establish the trend direction, though it's best paired with other settings to pinpoint your entry and exit points.It can also stand alone. For example, if the last 3-4 series show just 1-3 breakthrough bars, it indicates a flat market lacking a clear direction. This often precedes the emergence of a strong uptrend. In our example above, we see a sequence of -2, 3, -3 that leads to a robust trend with 20 breakthrough bars—resulting in about 6000 pips before the next turn. Here, the reversal parameter is set at 1500.
2012.12.10
