A break of a range with no participation often fails. The volume breakout indicator asks for both: a close beyond the highest high or lowest low of the prior twenty bars, and tick volume at least one and a half times its twenty-bar average. By default the break candle must also close in the break direction.
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: Volume Breakout Buy, Volume Breakout Sell, Breakout High, Breakout Low |
| Alerts | popup, push notification, email, sound |
| Inputs | 12 |
A look at the plots
Two channel lines and two marks on price.
`Breakout High` traces deep sky blue.
`Breakout Low` traces orange.
`Volume Breakout Buy` prints lime with arrow 233.
`Volume Breakout Sell` prints red with arrow 234.
A comment line shows the settings.
- Volume Breakout Buy: arrow, lime, width 2, arrow code 233
- Volume Breakout Sell: arrow, red, width 2, arrow code 234
- Breakout High: line, deep sky blue, width 1
- Breakout Low: line, orange, width 1
Working through the maths
Channel
`Lookback` `20` finished bars set the high and low. A bar is never part of its own channel.
Volume check
`VolPeriod` `20` averages tick volume. A break bar needs `VolMult` `1.5` times that average or more.
Candle
With `RequireMomentum` on, a buy needs a bullish candle. `CooldownBars` `3` blocks any mark for three bars after the last one.
Reading the result
Blue marks the channel top, orange the bottom.
A lime mark is a high break on heavy volume.
A red mark is a low break on heavy volume.
Quiet breaks get no mark at all.
`ArrowGapPips` `1.0` sets the mark gap.
Warm-up needs about twenty-one bars.
Alert channels in this build: popup, push notification, email and sound, one message per closed bar.
A break with a volume spike sends one message per bar. `EnableAlerts` decides, and the popup is the route set to deliver when you first attach the file.
Every Volume Breakout Indicator input
Core settings
| Setting | What it does | Default |
|---|---|---|
Lookback |
Breakout channel lookback (bars). Bars in the channel, `20`. | 20 |
VolPeriod |
Volume average period. Bars in the volume average, `20`. | 20 |
VolMult |
Volume-spike multiple of average. Volume spike size, `1.5`. | 1.5 |
RequireMomentum |
Breakout bar must be a momentum candle. Break candle must point the same way, `true`. | on |
CooldownBars |
Bars between repeated signals. Bars after a mark before the next, `3`. | 3 |
Display settings
| Setting | What it does | Default |
|---|---|---|
ArrowGapPips |
Arrow offset from the bar (pips). Mark gap in pips, `1.0`. | 1.0 |
Alert settings
| Setting | What it does | Default |
|---|---|---|
EnableAlerts |
Master alert switch, `true`. | on |
EnablePopup |
Popup, `true`. | on |
EnablePushNotify |
Mobile route, `false`. | off |
EnableEmail |
(see inputs panel) | off |
EnableSound |
Speaker, `false`. | off |
SoundFile |
(see inputs panel) | alert.wav |
Getting the chart right
Tick volume spikes cluster around session opens and news. EURUSD H1 is the reference chart, with a few volume breaks a week. On M15 the London open produces most of them. On D1 spikes are rare and notable.
Where it stops working
Tick volume only approximates real volume.
News spikes pass the check and often reverse.
The cooldown blocks both sides at once.
Only the popup starts switched on.
Copy the compiled Volume 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.
Download the Volume Breakout Indicator for MT4 and MT5
The zip holds the compiled Volume 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
How big a tick volume spike does VolMult 1.5 want?
Tick volume on the break bar of at least one and a half times its 20-bar average. Breaks on ordinary or light volume are ignored, however far price travels.
What changes with RequireMomentum off?
The break candle can close in either direction, as long as the close is beyond the channel and volume spikes. Expect a few more marks, some on long-wicked bars.
Does Breakout High include the current bar?
No. It covers the twenty bars before, so a bar cannot lift its own ceiling. The close must beat a level that was already there.
Why does CooldownBars 3 block a Sell right after a Buy?
This build checks for any mark in the last three bars, whatever its side. After a buy, the chart stays quiet for three bars before any new signal.
Are results guaranteed?
No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Volume Breakout Indicator as one input. Always backtest before trading live.
Category: this is part of our Volume collection. Browse more Volume for MetaTrader, or explore every MT4 indicator and MT5 indicator on the site.
External references
- The core method is documented in Midpoint (company) on Wikipedia.
- Additional market context is at Prings Inflation And Deflation Indexes 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.