
Intraday Channel Breakout Indicator
Platform: MT4 Type: Channel Last update: October 7, 2024The 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.
How to apply the intraday channel breakout 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.
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.