MT4 indicator (Breakout_PANCA_EAGLE.mq4)

MT4 indicator (Breakout_PANCA_EAGLE.mq4)

The purpose of Breakout_PANCA_EAGLE indicator

This is a breakout indicator, which is used on a daily basis to capture the price breaks out of the predefined breakout zones. While many traders are known to use it as is without changing default parameter, PANCA_EAGLE is rather a versatile tool that helps to:

- better highlight and visualize the breakout zone
- time your trading on a daily basis (by setting your custom breakout range)- improve trading discipline (by letting you trade only when it's time to trade)
- filter early insignificant breakouts and tests of the breakout lines
- even helps with possible re-entries later during the day

Breakout_PANCA_EAGLE 1 hour EURUSD:

How to read Breakout_PANCA_EAGLE indicator signals

The indicator draws colored boxes:

Red box - stretches form the beginning to the end of the breakout zone. This is a no trading zone. Traders have to wait till the red box ends.

Green line - BoxBreakout Offset zone - creates a green buffer above and below the breakout zone. This buffer serves as a filter for:

breakout line tests, noise around the breakout line and it prepares traders to trade.

Blue zone - this is the exact High to Low price range in between the hours that were picked as the breakout range.

Breakout_PANCA_EAGLE 5 min EURUSD:

Breakout_PANCA_EAGLE settings

NumberOfDays - only affects how many days will be shown with the PANCA_EAGLE drawings on the chart, doesn't affect the calculation in any way.

PeriodBegin - the hour at which the range for the PANCA_EAGLE channel starts
PeriodEnd - the hours at which the range for the PANCA_EAGLE channel ends
BoxEnd - the hour at which all PANCA_EAGLE drawings will end

BoxBreakOut_Offset - the number of pips you want to have for that green buffer zone

Filtering breakout directions with Breakot_PANCA_EAGLE

PANCA_EAGLE can be used in combination with other indicators mainly for filtering the direction of the breakout.

Among such trend indicators is BBands_Stop_v1.mq4, which is used for identifying trends.

BBands_Stop_v1.mq4 

The rule of using BBands_Stop with PANCA_EAGLE suggested that traders look to take breakouts with PANCA_EAGLE signals only if the direction of the breakout agrees with the trend direction shown by the BBands_Stop indicator. 

However, it is not the ultimate tool. There are many other trend indicators that can be used instead of the BBands_Stop, even a simple Parabolic SAR indicator.

Breakout_PANCA_EAGLE.mq4