The Order Block Breaker Indicator is a popular technical analysis tool used by forex traders to identify key support and resistance levels based on the order block concept. The indicator is designed to detect and highlight order blocks, which are areas of consolidation where institutional traders place their orders. In this article, we will discuss the definition, working, and best settings of the Order Block Breaker Indicator, and how to use it to trade in MT4.
Definition
The Order Block Breaker Indicator is a technical analysis tool that uses the order block concept to identify key support and resistance levels in the market. An order block is a consolidation area where institutional traders place their orders, and the Order Block Breaker Indicator is designed to detect and highlight these areas.
Working of Order Block Breaker Indicator in MT4
The Order Block Breaker Indicator is calculated by analyzing the price action and volume traded at each price level over a specified period of time. The indicator plots colored rectangles on the chart to highlight areas where significant buying or selling activity has occurred. These areas represent order blocks, and can be used to identify key support and resistance levels in the market.
The Order Block Breaker Indicator can be used to identify potential breakouts and trend reversals. When the price breaks through an order block with high volume, it indicates that a breakout or reversal may be occurring, and traders can look to enter a trade in the direction of the breakout or reversal.
Best Settings for Order Block Breaker Indicator
The best settings for the Order Block Breaker Indicator depend on the trading strategy and the time frame being used. Generally, a shorter time frame, such as 5 minutes or 15 minutes, is used for intraday trading, while a longer time frame, such as 1 hour or 4 hours, is used for swing trading.
The table below shows the best settings for the Order Block Breaker Indicator for different time frames:
| Time Frame | Color of Order Blocks |
|---|---|
| Intraday | Blue |
| Swing | Green |
| Positional | Red |
How to Trade with Order Block Breaker Indicator?
The Order Block Breaker Indicator can be used in a variety of trading strategies. Here are two common ways to use the Order Block Breaker Indicator to trade in MT4:
- Identify Key Support and Resistance Levels: The Order Block Breaker Indicator can be used to identify key support and resistance levels based on the order block concept. Traders can look for areas of consolidation where significant buying or selling activity has occurred, and use these levels to enter and exit trades.
- Confirm Breakouts and Reversals: The Order Block Breaker Indicator can be used to confirm breakouts and reversals by analyzing the price action and volume traded at each price level. When the price breaks through an order block with high volume, it indicates that a breakout or reversal may be occurring, and traders can look to enter a trade in the direction of the breakout or reversal.
Features of Order Block Breaker Indicator
The Order Block Breaker Indicator has several features that make it a useful tool for traders. Some of these features include:
- Identifying key support and resistance levels based on the order block concept
- Highlighting areas of significant buying or selling activity
- Customizable settings to suit different trading strategies
- Works well with other technical analysis tools, such as moving averages and trend lines.
Free Download Link
To download the Order Block Breaker Indicator for MT4 for free, click the download button below. Once you have downloaded the indicator, you can easily install it in your MT4 platform and start using it in your trading.
Remember, it is important to use the Order Block Breaker Indicator in combination with other technical analysis tools and to always practice proper risk management techniques when trading.
Download indicatorConclusion
The Order Block Breaker Indicator is a powerful tool that can help forex traders identify key support and resistance levels in the market based on the order block concept. Traders can use the indicator to identify potential breakouts and trend reversals, and customize the settings to suit their trading strategies. By incorporating the Order Block Breaker Indicator into their trading approach, traders can gain an edge in the markets and improve their chances of success.