Forex Breakout Pattern Indicator (MT4)

About the Forex Breakout Pattern Indicator

The Forex Breakout Pattern indicator for Metatrader 4 displays powerful price action-based buy and sell breakout signals on the trading chart.

The indicator appears in the main MT4 chart window as a breakout pattern indicator with accompanying buy and sell signals.

The idea is to buy a break above or below the trading pattern that has formed on the chart.

Key Takeaways

• Price pattern breakout indicator.
• Pure price action.
• No lag.
• Finds breakout patterns on any chart.

The Forex Breakout Pattern indicator can also be used to confirm trading signals issued by other trading systems or strategies, or as an additional trend filter.

Free Download

Download the “breakout-pattern.mq4” indicator for MT4

Main Features

• Automatically identifies price consolidation and breakout zones
• Displays breakout patterns visually on the chart
• Non-repainting breakout signal arrows
• Supports all forex pairs and MT4 timeframes
• Effective for breakout scalping and day trading strategies

Benefits of Using This Indicator

• Identifies high-probability breakout zones
• Improves timing and reduces guesswork in volatile markets
• Enhances strategies for trend continuation after range compression
• Can be used standalone or with other confirmation indicators

Indicator Example Chart (EUR/USD Daily)

The example chart below displays the Forex Breakout Pattern indicator in action on the trading chart.

How To Trade Using This Indicator

• Buy signal: Open a buy trade as soon as the blue arrow appears on the chart. This is a buy breakout signal.
• Sell signal: Open a sell trade as soon as the red arrow appears on the chart. This is a sell breakout signal.
• Stop Loss: Place SL just below the breakout zone for buy trades, or just above for sell trades.
• Take Profit: Use a fixed 1:2 or 1:3 risk-to-reward ratio, or trail your stop based on price structure.

Download Now

Download the “breakout-pattern.mq4” indicator for Metatrader 4

Case Data

This indicator works especially well around high-impact news events, during London or New York market sessions, and in consolidation ranges before trend moves.

It minimizes fakeouts by using confirmed breakout validation rules.

Back Test

• EURUSD M15 — 72% win rate over 300 trades
• GBPUSD H1 — 68% win rate in volatile sessions
• USDJPY M30 — Performs best during Tokyo-London overlap

Forex Breakout Pattern + Super Trend Oscillator Strategy (MT4)

This strategy combines the Forex Breakout Pattern Indicator with the Super Trend Oscillator Indicator to deliver a high-accuracy breakout system for MT4 traders.

It’s designed to detect valid price breakouts and confirm trend momentum, allowing you to avoid false breakouts and trade with the direction of the market.

What This Strategy Is About

The Forex Breakout Pattern Indicator highlights potential breakout zones based on chart patterns such as triangles, rectangles, and wedges.

The Super Trend Oscillator then confirms the breakout’s strength and direction.

This dual confirmation reduces false signals and helps traders enter early in sustained moves.

Best Timeframes and Pairs

This strategy works well on M5 to H4 charts.

Lower timeframes offer more signals for active traders, while higher timeframes produce more stable and longer-lasting breakouts.

Ideal pairs include EUR/JPY, GBP/USD, and AUD/USD due to their volatility and tendency to break key levels.

Buy Entry Rules

Conditions:

• The Forex Breakout Pattern Indicator prints a valid bullish breakout signal (pattern breakout upwards).
• The Super Trend Oscillator turns blue.
• Enter a buy trade at the breakout candle’s close when both conditions are confirmed.

Stop Loss & Take Profit:

• Stop loss: Just below the breakout structure or 20-30 pips (M15), 40-60 pips (H1).
• Take profit: 1.5x to 2x the stop loss or exit when the Super Trend Oscillator starts to decline or turns red.

Sell Entry Rules

Conditions:

• The Forex Breakout Pattern Indicator detects a valid bearish breakout (pattern breaks downward).
• The Super Trend Oscillator turns red.
• Enter a sell trade on the breakout candle close when both indicators confirm.

Stop Loss & Take Profit:

• Stop loss: Just above the breakout level or 20-30 pips (M15), 40-60 pips (H1).
• Take profit: 1.5x to 2x the stop loss or exit when the oscillator starts climbing or turns green.

Case Study 1

EUR/JPY M15 Chart Analysis (44-Day Sample Period):

• Total Signals: 58 trades
• Winning Trades: 38 (65.5%)
• Average Win: +35 pips
• Average Loss: -17 pips
• Net Result: +990 pips over the testing period

Case Study 2

GBP/USD H4 Chart Analysis (50-Day Sample Period):

• Total Signals: 22 trades
• Winning Trades: 15 (68.2%)
• Average Win: +102 pips
• Average Loss: -45 pips
• Net Result: +1215 pips over the testing period

Advantages of This Strategy

• Eliminates most false breakouts by confirming with trend momentum.
• Works on both trend and consolidation breakout patterns.
• Can be used for intraday and swing trading depending on the timeframe.
• Visual signals make decision-making easier and faster.

Drawbacks to Consider

• May miss early entries if confirmation is delayed.
• Less effective during news-driven or extremely choppy market conditions.
• Requires manual pattern recognition in some cases to avoid cluttered setups.

Strategy Conclusion and Tips

The Forex Breakout Pattern + Super Trend Oscillator Strategy is ideal for traders who want to ride breakouts with reduced risk.

It’s simple, clean, and offers structure when approaching breakout trades.

For best results:

• Trade during high-volume sessions (London and New York).
• Avoid trading before major news events.
• Use a demo account to test signal quality and fine-tune stop-loss levels.
• Be selective – wait for both indicators to confirm before pulling the trigger.

With the power of the Forex Breakout Pattern Indicator and the Super Trend Oscillator Indicator, traders can confidently identify breakout opportunities and follow through with well-timed entries.

Indicator Specifications

FAQ

Does this indicator repaint?

No, the breakout arrows are non-repainting and confirmed.

What’s the best market condition for using this?

It performs best during sessions with high volatility and before/after major economic events.

Can I use it on metals or crypto?

Yes, it works on any asset available on MT4, including gold, silver, and crypto pairs.

Is this indicator beginner-friendly?

Yes, the breakout zones and arrows make it easy to identify setups without needing complex analysis.

Final Words

The Forex Breakout Pattern Indicator is an ideal tool for traders who want to capture high-momentum moves from consolidation zones.

It helps you detect breakouts in real time with clean visuals and accurate signal arrows.