Stretch Breakout Channel
Info
The Stretch Breakout Channel is a Indicator for MetaTrader 4 that the stretch is calculated by taking the 10-period simple moving average (sma) of the absolute difference between the open and either the high or low, whichever difference is smaller. It represents the minimum average price movement/deviation from the open price during a period of time, and this value is used to calculate breakout thresholds for the current trading session, enabling the plotting of a multi-timeframe breakout channel.
Usage
This tool is typically used for breakout trading when price moves beyond key support/resistance levels.
Platform
This Indicator works exclusively on MetaTrader 4 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL4/Indicators folder via File ? Open Data Folder in MetaTrader 4.
How to Install and Use Stretch Breakout Channel
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
The Stretch is calculated by taking the 10-period simple moving average (SMA) of the absolute difference between the open and either the high or low, whichever difference is smaller.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 4.
Compatible Platform & Setup
This Indicator works on MetaTrader 4. Place the file in the MQL4/Indicators folder and restart the terminal.
Description & Settings
Related: 5-day breakout indicator - another powerful indicator for MetaTrader 4 traders.
The Stretch is calculated by taking the 10-period simple moving average (SMA) of the absolute difference between the open and either the high or low, whichever difference is smaller. It represents the minimum average price movement/deviation from the open price during a period of time, and this value is used to calculate breakout thresholds for the current trading session, enabling the plotting of a multi-timeframe breakout channel.Also recommended: breakout rhonchus pro: professional momentum breakout indicator - similar indicator with strong performance on MetaTrader 4.
The Opening Range Breakout (ORB) trading strategy involves placing a buy stop just above the open price plus the Stretch and a sell stop just below the open price minus the Stretch. The first triggered stop enters the trade, while the other stop becomes the protective stop.
Research shows that earlier entries in the trading session increase the likelihood of profitability at the close. Quick market movements that initiate trends during the current session can significantly enhance profits by the close, making them suitable for multi-day trades.
As time progresses without an early fill, the risk increases, and it becomes advisable to reduce position size. Trades filled towards the end of the day carry the highest risk, and the later the trade is filled, the less appealing it becomes to hold overnight.
The Opening Range Breakout Preference (ORBP) strategy is a one-sided ORB trade. When other technical indicators indicate a strong trend, traders exercise a preference for the direction of the ORB trade. A stop to open a position is placed on the side of the trend, and if filled, a protective stop is set. The calculation for the 'stop to open' is the same as for the ORB trade: for longs, the open price plus the Stretch, and for shorts, the open price minus the Stretch.
You may also like: trend line breakout alerter - excellent alternative for indicator users on MetaTrader 4.
Source Code
#property copyright "robotfx"
#property link "https://robotfx.org"
#property indicator_separate_window
#property indicator_buffers 2
#property indicator_color1 mediumseagreen
#property indicator_color2 red
#property indicator_width1 2
#property indicator_width2 1
#property indicator_style2 style_dot
#define mamethod 2.......
⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.