Breakout Zones indicator in MetaTrader 5 Download - Free - [TradingFinder]

The Breakout Zones Indicator in MetaTrader 5 automatically draws support levels and resistance levels based on price movements on the chart.

When the price crosses the resistance line, it indicates the start of an uptrend, and when it drops below the support line, it signals the formation of a downtrend. This indicator effectively helps identify bullish and bearish market trends.

Indicator Specifications

The table below provides a summary of this indicator's details:

Indicator in an Uptrend

In the EUR/CAD price chart with a 5-minute timeframe, the price initially declines upon hitting the Resistance Zone. After a liquidity grab, it reattempts to breach the resistance line and successfully breaks it.

Following this breakout, the resistance zone turns into a support zone, and the price uptrends. With the necessary confirmations, traders can open buy positions.

Indicator in a Downtrend

In the 30-minute chart of the AUD/USD pair, after reaching the resistance zone, the price fails to create a higher high and starts to decline sharply.

Upon breaking the Support Zone, traders can enter sell positions by confirming with candlestick patterns according to their trading strategy.

Breakout Zones Indicator Settings

The indicator settings are fully visible in the image below:

• Chart Theme: Background color of the chart;
• Zone Start Hour: Start hour of the zone;
• Zone End Hour: End hour of the zone;
• Entry Offset: Distance between the extended lines and the main zone lines;
• Lines Color: Line color.

Conclusion

The Breakout Zones Indicator in MetaTrader 5 is a key support and resistance-based trading tool. Traders can identify a zone and wait for a breakout to determine the probable market direction. However, they must watch out for false breakouts.