Discussing the article: "Automating Trading Strategies in MQL5 (Part 35): Creating a Breaker Block Trading System"
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Check out the new article: Automating Trading Strategies in MQL5 (Part 35): Creating a Breaker Block Trading System.
In this article, we create a Breaker Block Trading System in MQL5 that identifies consolidation ranges, detects breakouts, and validates breaker blocks with swing points to trade retests with defined risk parameters. The system visualizes order and breaker blocks with dynamic labels and arrows, supporting automated trading and trailing stops.
The breaker block strategy is a trading strategy that identifies consolidation ranges where price moves within a tight range, followed by a breakout and an impulsive move, forming order blocks that, when invalidated, become breaker blocks for potential retest trades. It capitalizes on price returning to these blocks after a significant move away, entering trades in the direction of the breakout with defined stop-loss and take-profit levels, enhanced by visual chart elements. Have a look at the different breaker blocks we could have below.
Bearish Breaker Block:
Bullish Breaker Block:
Our plan is to detect consolidation ranges by analyzing a set number of bars, identify breakouts when price exits the range, and confirm impulsive moves using a multiplier-based threshold. We will implement logic to validate breaker blocks with swing points, execute trades on retests with customizable parameters, and visualize blocks with dynamic labels and arrows, thereby creating a system for identifying and trading breaker block opportunities.
Author: Allan Munene Mutiiria