Indicator Overview
The Directional Breakout averages 2 indicator for MT4 helps visualize breakout strength based on moving average deviation. It uses colored histogram bars to indicate upward or downward momentum relative to a moving average. This makes it easy to spot when the price starts breaking out in a certain direction with increased strength.
The indicator calculates the difference between price and the selected moving average and displays that as a histogram. Green bars typically show bullish momentum, while red or orange bars highlight bearish pressure or reversal attempts.
How to Use It in Practice
In practical use, this indicator helps traders:
- Identify the direction and strength of breakouts based on MA deviation.
- Confirm trend continuation or spot early signs of reversal.
- Use visual color cues for fast reaction in live markets.
- Optionally get alerts for breakout signals through sound, pop-up, or email.
It’s especially useful for breakout traders or those who rely on MA-based trend filtering.
Parameter Explanations
TimeFrame
Selects the timeframe on which the indicator calculations are based. You can set it to use the current chart or a specific one like H1 or D1.
Price
Determines which price type to use in the calculation, such as Close, Open, High, or Low.
Method
Sets the moving average method — options include SMA, EMA, etc. This affects how breakout deviation is calculated.
Length
Specifies the period of the moving average used in the calculation. Shorter values react faster to price changes.
alertsOn
Enables or disables all alert types.
alertsOnCurrent
Set to true if you want alerts to trigger on the current bar; false waits for bar close confirmation.
alertsMessage
If true, displays a pop-up message when a breakout condition is met.
alertsSound
Plays a sound notification when a breakout occurs.
alertsEmail
Enables email alerts if configured in the MT4 terminal settings.
soundFile
Specifies which sound file to play for sound alerts.
ShowArrows
If true, shows arrows on the chart to mark breakout signals.
arrowsIdentifier
Sets the label name for arrows drawn by the indicator, useful for differentiating from other tools.
arrowsUpperGap
Defines the vertical gap (in pixels) above the candle where the upward arrow appears.
arrowsLowerGap
Sets the gap below the candle for downward arrows.
arrowsUpColor
Color of the upward breakout arrow.
arrowsDnColor
Color of the downward breakout arrow.
arrowsUpCode
Defines the character code for the up arrow symbol.
arrowsDnCode
Defines the character code for the down arrow symbol.
