Breakout Bars Trend Indicator For MT5
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I like how the markets and tools are advancing in levels of sophistication and intelligence. The Breakout Bars Trend Indicator For MT5 is a sophisticated trading the tool that offers great value to help you grow your equity curve.
Market sentiment is a key component in trading, the sooner you understand and value this concept the better it is for your trading experience and portfolio. The Breakout Bars Trend Indicator For MT5 is a top class indicator and it is quite handy to use in your MT5 trading platform. I say this because you'll understand when I show you the technicalities of it but I won't go into great detail on this. I shall mainly focus on showing you the pure essence of what makes the Breakout Bars Trend Indicator For MT5 one of the best indicators there is.
Breakthrough Trading In Colour
The Breakout Bars Trend Indicator For MT5 is simply an upgrade or a modification to the Moving Average indicator. As you know in your trading we use the Moving Average to detect the market sentiment within financial markets. That is the gist of it!
So how this Breakout Bars Trend Indicator For MT5 works is that it actually shows you market sentiment using a colour Legend with the default setting showing two sets of colour pairs for an uptrend and a down trend. The default setting for the down trend uses two colours: orange and red. The orange and red candlesticks marks the bullish and bearish candlesticks respectively within in a down trend. And the default setting for an up trend uses two colours: dark blue and light blue. The dark blue and light blue candlesticks marks the bullish and bearish candlesticks respectively within in an up trend.
It's always good to have a visual cue that gives us a quick reference point for what is going on in the market relative to market sentiment or any changes which may occur thereof by perhaps a breakout bar shown in the image above.
So what does the Breakout Bars Trend Indicator For MT5 actually mean by "Breakout Bars"? Well it actually counts the number of breakout candlesticks that are labelled as sort of "pure closing" candlesticks by that I mean it simply looks at the number of candlesticks within the market whereby a candlestick closes above or below the extreme high and extreme low (respectively) of the previous candlestick.
The Breakout Bars Trend Indicator For MT5 actually does it for you and if you had to do this by yourself (manually) it will most definitely prove to be an arduous exercise considering the amount of concentration and time.
Basically to sum it up in a very simple way, is that the Breakout Bars Trend Indicator For MT5 actually deems a candlestick as a successful close if it closes below the previous low of the previous candlestick or above the high all the previous candlestick: that's just how it works so yeah.
Safe Way To Trade
Trading using the Breakout Bars Trend Indicator For MT5 is cool because it manages to reduce a lot of clutter in our analysis, it enables us to trade in a safe way, and it allows us to be patient when we take your trades so that we wait for the market to converge into our tradr setups. By that merit it is an excellent indicator because you would rather be safe than sorry right?
Looking back at the trading opportunity that we talked it became clear to us that the market was actually in the bearish movement for a very long time prior to the orange and red section that shows the bearish market sentiment.
So if look before the orange and red sections of the Breakout Bars Trend Indicator For MT5 and price action. you see that the market was actually in a in a consolidation phase for two and a half weeks from 9 October 2019 until about 24 October 2019 on the H4 trading chart above.
Towards the end of this trading range you could see that a lot of money could still have been made by simply drawing a trend line that has two or three touches made on the resistance (upper) trend line of the downtrend. Because ultimately that's there is one of our strongest key guidelines are for a down trend. We always focus on the upper trend line in a downtrend to look out for breakouts and there were no breakouts being made in that blue phase of the market before it the Breakout Bars Trend Indicator For MT5 turned orange and red to give us a bearish signal.
This instance shows that price action and deep analysis of the market is never needless in the midst of great indicators.
Therefore, it will always be of great value to you to analyse the market objectively and to use the Breakout Bars Trend Indicator For MT5 as a reinforcement tool for your trading system.
How many more confirmations do you need to lure you into executing a sell trade? The market moved close to 80 pips into the downtrend before the Breakout Bars Trend Indicator For MT5. This is the only drawback of the Breakout Bars Trend Indicator For MT5. However, this drawback does not take away the brilliance of the Breakout Bars Trend Indicator For MT5. In many ways, I am actually glad that this drawback exists because it helps to edify your ability as a trader to look at the market and the indicators with a stronger eye because trading 100 hundred percent reliant on indicators is risky!