BreakOut (MetaTrader indicator) — indicates the distance of the current price (Close or High/Low) from breaking out of the recently set support or resistance levels, which are detected using local minimums and maximums.
- L (default = 50) — period of the indicator. The higher is the value the less breakouts are signaled but the better their quality.
- PriceType (default = 1) — type of price to be used in calculations. In theory, Close is better for daily/weekly timeframes, High/Low is better for short-term timeframes. In MT4: 0 - Close, 1 - High/Low. In MT5: self-explanatory parameter values.
The chart above displays the TradeBreakOut indicator at its default settings. When the green line reaches zero level from below, it means a bullish breakout of the local maximum. When the red line reaches zero level from above, it means a bearish breakout of the local minimum. The bigger is the distance from the line to zero level the less probable its breakout.