The Risk Reward Box Forex indicator for Metatrader 4 draws a risk-to-reward box on the chart that can be fully modified with your mouse button.
The indicator can be applied to any MT4 instrument and desired time frame.
The risk box is colored light red, while the reward box is colored green.
Just push the “Reset All Box” to reset the risk-reward box indicator.
Key Points
- Risk-to-reward tool
- Works for any trading instrument
- Works for any time frame
- Well worth adding to your indicator collection
This indicator can work together with any existing trading strategy or system.
Free Download
Download the “Risk Reward Box.mq4” MT4 indicator
Indicator Example Chart
The EUR/USD 1-hour chart below shows the Risk Reward Box indicator in action.
Trading Strategy: Combining Risk Reward Box with Multi Time Frame Forex Breakout Indicator
Overview
To improve trade planning and execution, this strategy integrates the Risk Reward Box Indicator with the Multi Time Frame (MTF) Forex Breakout Indicator.
While the Risk Reward Box assists in visualizing and adjusting risk-to-reward ratios, the MTF Breakout Indicator identifies potential breakout points across different time frames, providing clearer entry signals.
Required Indicators
- Risk Reward Box Indicator: Allows traders to draw and adjust risk-to-reward boxes directly on the chart, facilitating precise trade planning.
- Multi Time Frame Forex Breakout Indicator: Highlights breakout levels by drawing support and resistance lines based on multiple time frames, aiding in identifying potential trade entries.
Trading Rules
Buy Setup
- Wait for the price to close above the yellow resistance line drawn by the MTF Breakout Indicator, indicating a potential bullish breakout.
- Use the Risk Reward Box to set a stop loss below the purple support line and a take profit level that ensures a risk-to-reward ratio of at least 1:2.
- Enter a long position after confirming the breakout and setting appropriate risk-reward levels.
Sell Setup
- Wait for the price to close below the purple support line drawn by the MTF Breakout Indicator, indicating a potential bearish breakout.
- Use the Risk Reward Box to set a stop loss above the yellow resistance line and a take profit level that ensures a risk-to-reward ratio of at least 1:2.
- Enter a short position after confirming the breakout and setting appropriate risk-reward levels.
Tips for Implementation
- Apply this strategy on time frames of 30 minutes or higher to reduce market noise.
- Ensure that the breakout is confirmed by a significant candle close beyond the breakout line to avoid false signals.
- Regularly adjust the Risk Reward Box to reflect changes in market volatility and price movements.
- Always test the strategy on a demo account before applying it to live trading.
Strategy Conclusion
By combining the Risk Reward Box Indicator’s visual trade planning capabilities with the Multi Time Frame Forex Breakout Indicator’s breakout signals, traders can enhance their decision-making process.
This integrated approach aims to provide more reliable trading opportunities by aligning clear entry signals with well-defined risk-to-reward parameters.
Download Now
Download the “Risk Reward Box.mq4” MT4 indicator
Adjustable Parameters & Settings
Draw a box on all opened charts, chart time frame, colors, and style
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
Technical Information
Currency Pairs: works on any currency pair
Trading Platform: developed for Metatrader 4 (MT4)
Time Frames: any
Indicator Type: risk/reward
How to install the Risk Reward Box indicator in Metatrader 4?
- Copy and paste the Risk Reward Box.mq4 indicator into the MQL4 indicators folder.
- You can access this folder from the top menu as follows:
- File > Open Data Folder > MQL4 > Indicators (paste here)
