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The winner of a contest is announced and given an iBot Xbox with lifetime license and updates. A Box Breakout Indicator is reviewed for forex and crypto trading, sponsored by Binance, the largest cryptocurrency exchange. The indicator identifies consolidation zones and provides statistical data for traders to make informed decisions on trading breakouts. The video encourages traders to try different settings and provide feedback. The video also promotes Binance’s services and offers a 10% discount on trading fees for referred accounts.
Breaking Down the Box Breakout Indicator for Successful Trading: A Review
Introduction:
In this video, we will review the Box Breakout Indicator, which is a useful tool for trading in the Forex and Crypto markets. We will discuss what the indicator is, what it does, and how it can be used to benefit traders. This video is sponsored by Binance, the largest cryptocurrency exchange, which offers a variety of crypto-related services.
What is the Box Breakout Indicator?
The Box Breakout Indicator is designed to identify areas of extreme consolidation, also known as consolidation zones, on the chart. The consolidation zones are identified according to user-defined parameters and are painted on the chart along with buffer lines and recent swing values. A statistical dashboard then highlights every consolidation zone found within the days back parameter, breaking each consolidation zone down by wins and losses while displaying other useful statistics.
How to Trade with the Box Breakout Indicator:
Once a new consolidation zone is formed, the trader has several ways to trade it. A safer trader might focus on just the initial breakout, while a riskier trader might choose to build a multi-trade basket around the consolidation zone. The various settings and search parameters of this indicator are sensitive, and even the smallest adjustments to any of the inputs will drastically alter the statistical dashboard.
The trading strategy:
The underlying concept behind this trading strategy is simple: wait until the market is doing nothing before setting out your plan of action. When the market is active, do nothing, and when the market does nothing, this is when you plan for your next trade. For this indicator, this nothing comes in the form of consolidation zones. As part of this trading strategy, swings or trends are not traded, only breakouts, without regard to direction.
Calculations:
All basic calculations performed by the indicator are based on a one-to-one win to loss ratio for both the take profit and stop-loss values. The only exception to this fixed rule is the quick take profit setting, which allows for a larger than average win only on the first trade of a set.
User-Defined Parameters:
The Box Breakout Indicator has a few user-defined parameters that can be tuned to fit your trading preferences. A detailed description of all parameters is provided in the download pack, which can be obtained for free by clicking on the link in the description.
Example Signals on Pound US Dollar Pair:
The indicator identified a consolidation zone and set the buffer lines. There was a breakout of the top buffer line, and a signal was triggered. The price went down to the middle level of the consolidation and went up again, hitting the quick profit target set at 20 pips. Then there was a consolidation zone broken out by the price at the bottom buffer line. The price then moved around the buffer line and went down nicely, hitting the quick profit target first and then going down even further to the 50 pips level. Lastly, there was a false breakout at the bottom, and the price hit a stop-loss. A long signal was given at the top buffer line, which resulted in profit and compensation for the previous loss.
Conclusion:
The Box Breakout Indicator offers traders of all experience levels something to work with, but it does require fine-tuning and experimentation to find the best settings. Overall, this indicator has great potential, and we encourage traders to try different settings and provide feedback. We hope you found this video helpful and informative. Don’t forget to leave your comments, give us a thumbs up, and subscribe to the channel. Thank you for watching, and we wish you profitable trading.
