You can now download the Dynamic SNR Breakout Forex Trading Strategy for free on AtoZ Markets indicators gallery.
Breakout strategies are one of the most commonly used type of strategies among professional and retail traders. This indicator conveniently plots horizontal supports and resistances, with blued dots as supports and red dots as resistances. These are based on the previous swing highs and lows, which is how a normal support and resistance is plotted.
Then, we wait for a full-bodied momentum candle to break through it and close outside of the range. Our entries will be pending stop entry orders. This is because often times, even with a momentum candle, there will be a slight retest of the previous support or resistance when it is broken. During these phase, we still don’t know if it is a real breakout or a fake-out. It is better to enter when the breakout is confirmed, and we do this by using pending stop orders.
Indicator: Support Resistance Levels
Currency Pair: any
Timeframe: 1-hour chart and above
Trading Session: any
How to trade with Dynamic SNR Breakout Forex Trading Strategy?
Buy (Long) Trade Setup Rules
- A bullish momentum candle should break and close above the resistance level (red dots)
- Set a pending buy stop order a little above the high of the breakout candle, which should be triggered on the next candle.
- If stop order is not triggered on the next candle, cancel the buy stop order
- Set the stop loss below the resistance level
- Set the take profit at 2x the risk on the stop loss
Sell (Short) Trade Setup Rules
- A bearish momentum candle should break and close below the support level (blue dots)
- Set a pending sell stop order a little below the low of the breakout candle, which should be triggered on the next candle.
- If stop order is not triggered on the next candle, cancel the sell stop order
- Set the stop loss above the support level
Set the take profit at 2x the risk on the stop loss
How to download and install an indicator?
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on “Download Indicator” button located at the top right corner of the screen.
- Save the file to your computer.
- Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select “Dynamic SNR Breakout Forex Trading Strategy” template to apply it on the chart.
Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.