Two prices, and nothing else to decide. The daily breakout indicator pulls yesterday’s high and low straight from the daily bar, draws both across your chart, and marks the close that pushes through either one. Four inputs is the whole configuration.
This build ships as a compiled .ex4 for MT4 and .ex5 for MT5; the screenshots below come from EURUSD H1.
| Platforms | MT4 (.ex4) + MT5 (.ex5) |
|---|---|
| Chart window | Main price chart |
| Plots | 4: PriorDayHigh, PriorDayLow, BuyBreakout, SellBreakout |
| Alerts | popup, push notification |
| Inputs | 4 |
What the Daily Breakout Indicator draws on the chart
Two lines and two marks on price.
`PriorDayHigh` runs dodger blue at width 2.
`PriorDayLow` runs orange red beneath it.
`BuyBreakout` uses arrow 233 in lime.
`SellBreakout` uses arrow 234 in red.
`ShowHL` can hide the lines and keep the marks.
- PriorDayHigh: line, dodger blue, width 2
- PriorDayLow: line, orange red, width 2
- BuyBreakout: arrow, lime, width 2, arrow code 233
- SellBreakout: arrow, red, width 2, arrow code 234
How the Daily Breakout Indicator calculates its values
Reading the daily bar
It asks the daily series directly. iBarShift finds which daily bar covers the previous day, then iHigh and iLow read it. Your own chart never has to count bars.
The crossing test
Two closes decide it. This bar has to finish above the prior high while the bar before sat at or under it. The downside mirrors that exactly.
Placing the mark
`ArrowOffsetPoints` `20` sets the gap. A buy mark hangs that far under the low of its bar, and a sell mark that far above the high.
How to read the signals
Both lines hold flat for the whole session.
They step to new values when a day completes.
A mark needs a close through, not a touch.
Only the first crossing of each side prints.
A wide previous day pushes both lines far apart.
The lines double as reference levels on a quiet day.
Alert channels in this build: popup and push notification, one message per closed bar.
`EnableAlerts` handles the breakout messages and ships true. `EnablePush` adds the mobile terminal and starts off. This build carries no mail or sound route at all, and both checks wait for a bar to close.
Every Daily Breakout Indicator input
Display settings
| Setting | What it does | Default |
|---|---|---|
ArrowOffsetPoints |
Arrow distance from candle in points. Gap between a mark and its candle, `20`. | 20 |
ShowHL |
Show prior-day H/L lines. Draw the two level lines, `true`. | on |
Alert settings
| Setting | What it does | Default |
|---|---|---|
EnableAlerts |
Alert on a new closed-bar breakout. Message on a closed-bar breakout, `true`. | on |
EnablePush |
Push notification. Send that to the mobile terminal, `false`. | off |
Settings that fit your chart
Daily levels want a chart where a session has several bars. EURUSD H1 is the reference chart. Price reaches one of the two most days there. On M5 the lines sit far away for hours. On daily bars each level lasts one candle.
When the Daily Breakout Indicator fails
A quiet yesterday leaves the two lines close together.
A weekend gap can open the week already past a level.
The first close through often fails.
Nothing here judges what happens after the mark.
Copy the compiled Daily Breakout Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.
Related on forexmt4systems.com: London Session Breakout Strategy.
Download the Daily Breakout Indicator for MT4 and MT5
The zip holds the compiled Daily Breakout Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.
Download this indicator free
Enter your email and the file is yours. You also get the full MT4 and MT5 library.
FAQ
Where does the PriorDayHigh line get its price?
From the daily series directly. iBarShift locates the daily bar covering yesterday, then iHigh reads its extreme, which works the same way whichever chart timeframe you load.
Does a wick past PriorDayHigh count?
No. The test compares closes, so price has to finish a bar beyond the level. That skips a lot of quick pokes through and costs you the fastest entries, which buys fewer false marks.
What does ShowHL false leave on the chart?
The two arrow plots only. Some traders already draw their own daily levels and want just the breakout marks, which is what switching the lines off gives you.
Why is ArrowOffsetPoints set to 20?
So a mark clears the candle without floating away from it. Twenty points is two pips on a five-digit major, which reads well on H1. Raise it on a symbol that travels further.
Are results guaranteed?
No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Daily Breakout Indicator as one input. Always backtest before trading live.
Category: this is part of our Signal and Forecast collection. Also, browse more Signal and Forecast for MetaTrader, or explore every MT4 indicator and MT5 indicator on the site.
External references
- For background on this concept, see Daily Stocks on Wikipedia.
- For broader market context, see Chart Types at StockCharts ChartSchool.
About the author
Written by Dominic Walsh, a Forex trader and MT4/MT5 indicator, Expert Advisor and script developer. Every tool on forexmt4systems.com is tested on live charts before release and ships with ready-to-use compiled MT4 (.ex4) and MT5 (.ex5) files. Learn more about the trader and developer behind this site.
How we build, test and correct every tool: Editorial & Testing Policy. Trading carries risk; see the disclaimer.