The Stretch Breakout Channel Indicator for MT4
Table Of Contents:
- The Stretch Breakout Channel Indicator for MT4
- Advantages of using the Stretch Breakout Channel Indicator for MT4
- Some Trade Ideas
The Stretch Breakout Channel Indicator for MT4 is a very powerful and reliable indicator that tells the trader using it where the price direction for the entire trading day is most likely to be. The accuracy of its signals has been tested over time by very prominent traders especially in trading the shorter term timeframes of the market.
The developer of the Stretch Breakout Channel Indicator for MT4 created it from ideas derived from a book on trading shorter timeframes by Toby Crabel and he has a very impressive track record to show for it since he was able to trade so efficiently between 1991 and 2002 without experiencing a single losing year.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Advantages of using the Stretch Breakout Channel Indicator for MT4
The Stretch Breakout Channel Indicator for MT4 was developed from the work of a legendary trader and as such helps the trader to leverage on all the work that has been done for so many years by this trader. It is a very powerful indicator for getting into trends when day trading.
The Stretch Breakout Channel Indicator for MT4 once used, would immediately constitute an indispensable part of any trader's tools when trading as this indicator easily complements any trading system and even as a standalone signal provider, has the potential to generate a lot of profits for the trader.
The Stretch Breakout Channel Indicator for MT4 is one of the few very robust and sturdy trading tools for Meta Trader 4 (MT4) as it rarely crashes and experiences technical setbacks when it is used for trading the markets in Meta Trader 4 (MT4). This makes the Stretch Breakout Channel Indicator for MT4 one of the indicators that are actually essential to the trading career of any trader.
The Stretch Breakout Channel Indicator for MT4 keeps a trader alive for long enough in the markets. The reason a lot of traders lose their accounts within 3 trading months or less is simple. This is mostly because they do not allow price action the freedom to move around and actually give them profits. Price action actually needs enough room depending on how volatile a particular currency is, in order to range successfully and then move to where it has planned to get to.
The Stretch Breakout Channel Indicator for MT4 keeps the trader alive by generating a very safe distance to be used by the trader in calculating stop loss and account size at risk even before the trade is placed, thereby allowing the trader to plan efficiently for the trade before he takes it.
Usually, in a sell trade, the trader would use the upper channel as the stop-loss placement and would then calculate the amount of their account they want to put at risk using the derived parameter.
In a long trade, the trader should then use the lower end of the channel for stop loss placement and should then calculate the amount of their account they want to risk-based also on the derived parameter.
The Stretch Breakout Channel Indicator for MT4 helps the trader to stay on the right side of the trend as the signals produced from the Stretch Breakout Channel Indicator for MT4 are usually breakouts and they happen mostly from the actual side the market is currently and would be tending to in the future. That way, the trader is almost always on the right side of the trend with his trades.
A very beautiful way to use the Stretch Breakout Channel Indicator for MT4 would be to wait for multiple timeframe alignment before any trades are taken. The Stretch Breakout Channel Indicator for MT4 can be placed on the H4, H1 and 15m and 5m timeframes. Breakouts can then be expected to happen in the same direction from all 4-time frames for instance, and then only trades from such aligning breakouts are taken. This keeps the trader in the correct direction at least 90% of the time.
Since all major trends are characterized by big moves in price action, the Stretch Breakout Channel Indicator for MT4 helps the trader to get in and ride the big trends as it is primarily designed to catch such big trends.
The breakouts signaled by the Stretch Breakout Channel Indicator for MT4 allow the trader to filter out market noise as the trader can won't be taking any trades except the ones that break out of the range they are in.
The power of using the Stretch Breakout Channel Indicator for MT4 in multi-timeframe trading cannot be overstated. Simply put, whenever the timeframes are aligned together in one direction, the trader has the unique opportunity to catch very big moves in price.
The Stretch Breakout Channel Indicator for MT4 works effortlessly in every single timeframe as it can generate signals for big price action moves which could result in huge profits in any timeframes the indicator is placed on. It would, however, serve the trader well to mostly utilize the Stretch Breakout Channel Indicator for MT4 on the bigger timeframes as they usually generate less false entries and then, the trader won't have to endure too many whipsaws unlike in the lower timeframes where price whipsaws are very rampant.
The Stretch Breakout Channel Indicator for MT4 tells the trader about the possibility of a very good trade based on the time of day and the trading session when the trade emerges. Hence, from statistics, breakouts that emerge earlier in the day or trading session rather than later have more likelihood to be successful than those that emerge late in or at the end of the day or trading session and can even be added to at the end of the trading day.
The Stretch Breakout Channel Indicator for MT4 uses a 10-period simple moving average to calculate and create breakout signals. such breakouts usually have the uncanny likelihood of taking place many times across many time frames of the same currency at the same time. The trader can capitalize on this to generate massive returns. In essence, higher timeframe breakout signals using the Stretch Breakout Channel Indicator for MT4 must be observed and respected and trades must not be taken against such moves because that would be very dangerous.
The signals from the Stretch Breakout Channel Indicator for MT4 can be very profitable when followed vigorously and consistently. The system can also be used as a standalone system or purely for signal confirmation across different trading systems or indicators.
The breakout signals usually happen around the NY session and the London session and are very ideal for scalpers to get in and out and make quick gains during the day.
Some Trade Ideas
Combine a minimum of about 3 to 4 timeframes starting from the daily or H4 and watch out for moves in the same direction from all 3 timeframes at the same time. Use the much lower timeframes to get into quick trades during the London and New York sessions. use the lower channel for stop-loss during buys and the higher channel for stop-loss during sells.
