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
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:
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:
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.
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.
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.
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