The Trade Day Breakout forex indicator for MT4 provides buy and sell breakout trade information that works on any forex pair.
The indicator displays the name of the trading day (Monday to Friday) and draws a highest – lowest price box for each trading day.
Interpretation:
The trend is upward when the low price of the current box is higher than the low price of the previous day’s box, and the high price is higher than the high of the previous day’s box. Currency traders look for buy trade opportunities.
The trend is downward when the low price of the current box is lower than the low price of the previous day’s box and the high price is lower than the high of the previous day’s box. Currency traders look for sell trade opportunities.
Breakout trades:
In an uptrend, go long when the high price of the current box exceeds the previous day’s high price.
In a downtrend, go short when the low price of the current box falls below the previous day’s low price.
Free Download
Download the “trade-day.mq4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD 1-Hour chart below displays the Trade Day Breakout Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Trade Day Breakout MT4 indicator are easy to interpret and go as follows:
Buy Signal: Open a breakout buy trade when the current day’s box high price bar exceeds the previous day’s high price. The overall trend must be upward.
Sell Signal: Open a breakout sell trade when the current day box low price bar falls below the previous day’s low price. The overall trend must be downward.
Trade Exit: Use your own method of trade exit.
Trade Day Breakout and BOS CHOCH MT4 Strategy
This strategy combines the Trade Day Breakout MT4 Indicator with the BOS CHOCH MT4 Indicator to identify strong breakout opportunities in the Forex market.
By using the daily breakout box from the Trade Day Breakout indicator and the market structure signals from BOS CHOCH, traders can enter high-probability trades with clear trend direction.
This strategy works best on higher time frames, such as H1, H4, and D1, but it can also be adapted for lower time frames for more active traders.
The strategy is suitable for swing traders, day traders, and breakout-focused scalpers who want a structured approach to capture moves after consolidation.
It leverages market structure analysis to confirm the direction of the breakout, reducing the chance of entering false moves.
Buy Entry Rules
- Confirm that the trend is upward: the low of the current breakout box is higher than the low of the previous day box, and the high is higher than the previous day box.
- Price closes above the BOS CHOCH indicator support level.
- Enter a buy trade at the close of the breakout candle above the box.
- Place the stop loss just below the lower boundary of the breakout box or below the most recent swing low.
- Set take profit at 1.5 to 2 times the risk, or target the next major resistance level.
Sell Entry Rules
- Confirm that the trend is downward: the low of the current breakout box is lower than the low of the previous day box, and the high is lower than the previous day box.
- Price closes below the BOS CHOCH indicator resistance level.
- Enter a sell trade at the close of the breakout candle below the box.
- Place the stop loss just above the upper boundary of the breakout box or above the most recent swing high.
- Set take profit at 1.5 to 2 times the risk, or target the next major support level.
Advantages
- Provides clear trade direction using market structure and breakout confirmation.
- Works well on multiple time frames, allowing flexibility for traders.
- Helps avoid false breakouts by combining two indicators for confirmation.
- Simple rules make it easy to follow for beginner and experienced traders alike.
Drawbacks
- Stop loss placement can sometimes be tight if the breakout box is small.
- Requires monitoring to adjust take profit levels based on market conditions.
- Not ideal for choppy or sideways markets without a clear structure.
Example Case Studies
Case Study 1
On the EURUSD H4 chart, the breakout box for the day showed a high of 1.1050 and a low of 1.1000.
The low of the current box was higher than the previous day’s low, and the high was higher than the previous day’s high, indicating an upward trend.
Price closed above the BOS CHOCH support level, triggering a buy entry at 1.1060.
Stop loss was set at 1.1000, and take profit at 1.1150.
The trade captured 90 pips over two days.
Case Study 2
On the GBPUSD H1 chart, the breakout box indicated a downward trend.
The current box low was lower than the previous box low, and the high was lower than the previous box high.
Price closed below the BOS CHOCH resistance level.
A sell entry was executed at 1.3120, with stop loss at 1.3180 and take profit at 1.3020.
The trade captured 100 pips over the next trading session.
Strategy Tips
- Wait for the breakout candle to close above or below the box before entering to avoid false breakouts.
- Check that BOS CHOCH confirms the direction: only take buy trades above support and sell trades below resistance.
- Consider the overall higher time frame trend for additional confirmation. If the higher time frame trend aligns, the breakout is more reliable.
- Adjust take profit levels based on recent swing highs and lows instead of fixed multiples when market volatility is high.
- Combine with volume analysis or candlestick patterns to further confirm breakout strength.
- Use a trailing stop after the trade moves in your favor to capture extended trends while protecting profits.
- For range-bound sessions, skip trades until a clear breakout occurs, reducing the risk of false entries.
- Keep a trading journal of all breakout trades to refine the strategy and identify the most profitable currency pairs and time frames.
Download Now
Download the “trade-day.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customisation options: Variable (limit) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: information
