About the Steinitz Fractal Breakout Indicator
As the name suggests, the Steinitz Fractal Breakout indicator for Metatrader 4 provides buy/sell signals based on Fractals.
The indicator appears in the main MT4 charts as 3 colored signal lines together with buy and sell arrows, creating a layered confirmation system.
These three lines act as dynamic filters; when the price moves beyond all of them, it signals that a strong trend is underway.
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Download the “Steinitz fractal breakout.mq4” indicator for MT4
Key Features
- It utilizes fractal geometry to identify significant price peaks and troughs automatically.
- The indicator features a triple-line filter system to confirm the strength of a breakout.
- It provides instant visual alerts via green and red arrows for immediate trade recognition.
- The tool works effectively across all timeframes, from M1 scalping to D1 trend following.
Indicator Chart
The Steinitz Fractal Breakout indicator chart displays three distinct colored lines that follow the price action like a moving corridor.
When the price breaks out of this corridor, it triggers a visual arrow signal.
A green arrow appearing when the price is above the lines indicates a high-probability bullish move.
A red arrow appearing when the price is below the lines signifies bearish dominance.
By watching the alignment of the candles relative to the three lines, a trader can easily distinguish between a fakeout and a real trend acceleration.
Guide to Trade with Steinitz Fractal Breakout Indicator
Trading with this tool requires waiting for the “triple-line” confirmation to ensure you are entering during a period of maximum momentum.
Buy Rules
- Monitor the chart for the price to rise and clear the upper boundaries of the three signal lines.
- Open a buy trade when the candlestick is positioned above all 3 signal lines and a green arrow appears on the chart.
- This combination signifies a strongly bullish environment with high follow-through potential.
- Verify that the most recent fractal high has been broken to confirm the breakout logic.
Sell Rules
- Watch for the price to drop decisively below the lower cluster of the three signal lines.
- Open a sell trade when the candlestick is positioned below all 3 signal lines and a red arrow appears on the chart.
- This setup indicates a strongly bearish trend where sellers have full control of the market.
- Confirm the signal by ensuring the breakout candle is large and shows strong selling conviction.
Stop Loss
- Secure your buy entry by placing the stop loss just below the lowest of the three signal lines.
- Protect your sell trade by positioning the stop loss slightly above the highest of the three lines.
- Adjust your exit point to account for the current spread and the volatility of the specific pair.
- Always maintain a disciplined risk-per-trade ratio to ensure long-term account stability.
Take Profit
- Exit the trade when a new fractal forms in the opposite direction or an opposite arrow appears.
- Target a 1:2 risk-to-reward ratio to ensure your winning trades outweigh your losses.
- Alternatively, close the position near a major horizontal support or resistance level.
- You can also trail your stop behind the signal lines to capture a larger portion of a sustained trend.
Intraday MT4 Strategy: Steinitz Fractal Breakout + MA Forex Trend Rainbow
This intraday trading strategy combines the Steinitz Fractal Breakout Indicator MT4 with the MA Forex Trend Rainbow MT4.
The Steinitz Fractal Breakout identifies strong bullish and bearish signals: a buy is triggered when the candlestick closes above all three signal lines and a green arrow appears, while a sell occurs when the candlestick closes below all three signal lines and a red arrow appears.
The MA Trend Rainbow confirms trend direction: a buy trend is indicated when the candlestick crosses above the MA rainbow, and a sell trend when it crosses below.
This strategy works best on M5, M15, and M30 charts and is ideal for currency pairs with good liquidity, such as EURUSD, GBPUSD, and USDJPY.
By combining breakout signals with trend confirmation, traders can enter high-probability intraday trades while minimizing false entries.
Buy Entry Rules
- Confirm that the candlestick closes above all three signal lines on the Steinitz Fractal Breakout indicator with a green arrow.
- Ensure the candlestick has crossed above the MA Forex Trend Rainbow, confirming a bullish trend.
- Enter a buy trade at the close of the confirming candle.
- Place a stop loss below the recent swing low or the lowest of the three signal lines.
- Take profit targets: 20–35 pips on M5, 30–50 pips on M15, 40–70 pips on M30 charts.
Sell Entry Rules
- Confirm that the candlestick closes below all three signal lines on the Steinitz Fractal Breakout indicator with a red arrow.
- Ensure the candlestick has crossed below the MA Forex Trend Rainbow, confirming a bearish trend.
- Enter a sell trade at the close of the confirming candle.
- Place a stop loss above the recent swing high or the highest of the three signal lines.
- Take profit targets: 20–35 pips on M5, 30–50 pips on M15, 40–70 pips on M30 charts.
Advantages
- Combines breakout signals and trend confirmation for higher probability trades.
- Clear entry signals using both arrows and MA rainbow crossovers.
- Works across multiple time frames and currency pairs.
- Helps filter out trades against the prevailing trend.
- Suitable for active intraday scalping and short-term trend trading.
Drawbacks
- Breakout entries may be slightly delayed, causing partial missed moves.
- Requires monitoring both indicators simultaneously for proper alignment.
Case Study 1: EURUSD M15 – London Session
EURUSD on the M15 chart closed above all three Steinitz signal lines with a green arrow at 1.1012.
The MA Trend Rainbow confirmed the bullish trend as the candlestick crossed above it.
A buy trade was entered with a stop loss at 1.0998.
Price moved to 1.1050 within 50 minutes, capturing 38 pips.
Trend confirmation and breakout alignment contributed to a successful trade.
Case Study 2: GBPUSD M5 – New York Session
GBPUSD on the M5 chart closed below all three Steinitz signal lines with a red arrow at 1.2785.
The MA Trend Rainbow confirmed the bearish trend.
A sell trade was entered with a stop loss at 1.2795.
Price fell to 1.2754 in 35 minutes, resulting in a 31-pip profit.
Strategy Tips
- Focus on high-liquidity sessions for reliable breakouts and trend continuation.
- Only enter trades when both the Steinitz breakout and MA rainbow trend align.
- Use strict risk management, limiting exposure to 1–2% of the account per trade.
Download Now
Download the “Steinitz fractal breakout.mq4” indicator for Metatrader 4
FAQ
What is the significance of the 3 signal lines?
The three lines act as a multi-layered momentum filter.
One line tracks short-term price flow, while the others track medium and long-term trends.
When price is “sandwiched” between them, the market is often ranging.
Only when the price breaks above or below all three lines does the indicator confirm a true breakout, helping you avoid the “choppy” price action that often traps traders.
Can I use this indicator for scalping on 5-minute charts?
Yes, the Steinitz Fractal Breakout is highly effective for scalping.
Because fractals are based on price peaks and troughs, they appear on every timeframe.
On the M5 chart, the indicator helps you catch the beginning of intraday moves.
To improve accuracy, only take signals that align with the trend of a higher timeframe, such as the 1-hour chart.
Summary
The Steinitz Fractal Breakout for MT4 is an effective momentum tool that assists in determining the appropriate timing for market entries.
Utilizing the geometric power of fractals helps you identify the exact moment a range-bound market transforms into a trending one.
This tool helps traders maintain a disciplined routine by focusing on confirmed price breakthroughs rather than anticipation.
Using this indicator allows you to filter high-risk trades and focus on high-conviction momentum shifts.
