Forex Two Bar Breakout MT4 Indicator:
About the Forex Two Bar Breakout MT4 Indicator
Complete System for the Starter in Forex
The indicator produces blue en red arrows as buy and sell signals. Use it on low timeframes as reversal system with the first new arrow in the other direction or as trend following system on the higher time frames.
When two special consecutive bars in the same direction are found and the ADR and ADX indicators are confirming, an entry arrow is placed. The idea is that one is not looking for the holy grail of systems, but uses a system to have a disciplined way of entering the market. One should focus on money and risk management instead.
Advised is to use pivot points as target lines to decide if a possible entry has space to grow to a profit and only then enter the market if the reward/risk ratio is minimal two to one. So the space from your entry place to the next pivot line must be at least twice as big as the space from your entry to the stop loss line.
Risk is the stop loss amount in money, it should be 0.5 – 1.0% of your account value. For starting use even less amount of risk, maybe 0.2%. That seems very little because the profit will be also very little, but it is very important you learn to take several losses in a row. For in all good trading systems you find series of losses and winners, and it would be a shame to exit using a system because you cannot withstand a group of losses.
Scale your position size small enough so that the stop loss is big enough not to be taken out too quickly.
Copy and paste the file 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)