Do you like to trade solid breakouts? The daily support & resistance breakout forex MT4 indicator is all you need.
The indicator draws the daily support and resistance levels on the chart.
The red line represents daily resistance while the blue line daily support.
How to trade?
Buy breakout: the price must cross and close above daily resistance from below.
Sell breakout: the price must cross and close below daily support from above.
Tip: Breakout traders often use price action techniques to confirm the long or short breakout trade.
Free Download
Download the “daily-support-and-resistance-special.mq4” MT4 indicator
Indicator Chart (EUR/USD H4)
The EUR/USD 4-Hour chart below displays the Daily Support & Resistance Breakout Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Daily Support & Resistance Breakout MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Open buy order when the currency pair crosses and closes above daily resistance (red line).
Sell Signal: Open sell order when the currency pair crosses and closes below daily support (blue line).
Trade Exit: Use your own method of trade exit.
Daily Support Resistance Breakout + Price Reversal Signal Strategy for MT4
This strategy combines the breakout detection of the Daily Support Resistance Breakout Indicator with the momentum confirmation of the Price Reversal Signal Indicator.
Buy trades are considered when price closes above a daily resistance and a green dot appears.
Sell trades are considered when price closes below a daily support and a red dot appears.
This method captures strong intraday movements while reducing false breakouts through momentum confirmation.
The strategy works best on M5 and M15 charts during active sessions when price reacts to daily levels.
Trades should only be taken when both breakout and reversal conditions are met, providing higher probability entries with defined risk management.
Buy Entry Rules
- Price closes above a daily resistance level.
- Price Reversal Signal indicator shows a green dot at or shortly after the breakout candle.
- Enter a buy trade at the close of the breakout candle or the next candle open.
- Place a stop loss a few pips below the breakout candle low or below the broken resistance.
- Take profit at the next swing high, or exit when a red dot appears.
Sell Entry Rules
- Price closes below a daily support level.
- Price Reversal Signal shows a red dot at or shortly after the breakout candle.
- Enter a sell trade at the close of the breakout candle or the next candle open.
- Place a stop loss a few pips above the breakout candle high or above the broken support.
- Take profit at the next swing low, or exit when a green dot appears.
Advantages
- Uses strong daily support and resistance levels, giving breakout moves more significance.
- Reversal signal confirmation filters false breakouts and improves timing of entries.
- Works on lower timeframes, allowing multiple trade opportunities per session.
- Stop loss and take profit levels are based on recent price structure for logical risk management.
Drawbacks
- Breakouts can fail, especially in low volatility or sideways markets.
- Waiting for both breakout and confirmation signals can limit the number of trades.
- Requires checking daily zones first, adding preparation time before trading lower timeframes.
- Profit targets may be small if price stalls after a breakout or if zones are wide.
Case Study 1 – Buy Trade on AUDUSD M5
During the London session, daily resistance at 0.6750 was broken when price closed at 0.6762.
The Price Reversal Signal displayed a green dot shortly after.
A buy trade was placed at 0.6762 with a stop loss at 0.6738.
Price moved up to 0.6790, and the trade was closed for a profit of 28 pips when the trend showed signs of slowing.
Case Study 2 – Sell Trade on USDCAD M15
On USDCAD, daily support at 1.3350 was broken when a 15-minute candle closed at 1.3340.
A red dot appeared on the Price Reversal Signal shortly after.
A sell trade was opened at 1.3340 with a stop loss at 1.3370.
Price dropped to 1.3308, and the trade was closed for a profit of 32 pips.
Strategy Tips
- Draw daily support and resistance zones before the market opens and update them after major daily candles close.
- Trade during high liquidity sessions such as London and New York for stronger breakout moves.
- Use reasonable position sizes and avoid overleveraging because false breakouts are possible.
- Exit trades early if an opposite signal appears to protect profits.
- Review past daily zone behavior because zones respected multiple times produce stronger breakouts when broken.
Download Now
Download the “daily-support-and-resistance-special.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: support|resistance
