Introduction to the Intraday Channel Breakout Indicator
The Intraday Channel Breakout Indicator is an awesome trading tool for scalpers and intraday traders.
As the name suggests, the main concept behind that gauge is to utilize breakouts and ICB does a great job at spotting them.
Additionally, it colorizes candles to green or red, depending on breakout direction.
It fits all kinds of currency pairs, but you should trade lower time frames like M5 or M15.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
Signals provided by the Intraday Channel Breakout Indicator are really intuitive and will not cause you difficulties. Simply follow the suggestions below.
Buy Entry: Open long trade when the price breaks and closes above the green resistance dotted line and the triggering candle has closed. The candle should be green. Place your stop loss a few pips below the last swing low.
Sell Entry: Open short trade when the price breaks and closes below the red support dotted line and the triggering candle has closed. The candle should be red. Place your stop loss a few pips below the last swing high.
Exit Trade / Take Profit: Close your open position when the price starts to reverse or the current day is coming to an end.
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
Example of EUR/USD M15 Chart
This screenshot below shows an example of the Intraday Channel Breakout Indicator in action.
As you can see, that forex indicator has huge potential – it can be really profitable in the disciplined hands.
How to set up the Intraday Channel Breakout indicator in MT4?
Download the Intraday Channel Breakout.rar archive at the bottom of this post, unpack it, then copy and paste the Intraday Channel Breakout.ex4 or Intraday Channel Breakout.mq4 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, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Intraday Channel Breakout indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.
Download Free Forex MT4 Intraday Channel Breakout Indicator
To download the Intraday Channel Breakout Indicator for Metatrader 4 (MT4) for free just click the button below: