Introduction to the Forex Trend & Breakout System
The Forex Trend & Breakout System analyses and determinate the market trend direction, and identifies possible breakout opportunities plus entry and exit points.
It consists of three indicators: HBF, HBH and BBands Stop – trading signals genarated by them are simple and easy-to-follow.
This system fits all kinds of timeframes and currency pairs.
Check also: Perfect Trend Line Indicator
How does it work? How to apply in trading?
Trading Rules Explanation
Open long trade when the following conditions are met:
- HBH turns blue – this indicator looks similar to Heiken Ashi candles
- BBands Stop turns blue and appears below the current price bar
- HBF turns blue color and goes to a positive value – this indicator is placed in a seperate window below the main chart
- Place your stop loss a few pips below last swing low.
Open short trade when the following conditions are met:
- HBH turns red – this indicator looks similar to Heiken Ashi candles
- BBands Stop turns red and appears above the current price bar
- HBF turns red color and goes to a negative value – this indicator is placed in a seperate window below the main chart
- Place your stop loss a few pips above last swing high.
Exit Trade / Take Profit
Close your open position when the opposite signal appears, or use your own preferred method of trade exit.
As always, to achieve good results, remember about proper money management.
How to set up the Forex Trend & Breakout System in MT4?
- Forex Trend & Breakout System.tpl
Copy and paste indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, that goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Similarly, copy and paste template file to the Templates folder.
Now, right-click on the chart, hover over Templates. You will have displayed a list of available systems, left-click template name you want to run.
Click the link below:
The Forex Trend & Breakout System is well worth adding to your trading collection but remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, it will provide false signals occasionally. Its performance will vary significantly depending on market conditions.