Just wanted to know if anyone knows a way to predict when a breakout is about to occur.
I would imagine it's very difficult to chase breakouts in the 1M becuase you will get a lot of false movements before the underliing trend appears.
However I guess, once you have the general trend direction from the larger time frames, 5M/15M -- I would use MACD Histogram divergence along with some sort of volatility indicator also Stochastic would be helpful.
I found that volatility greatly increases right before a major price movement, eventhough the price doesn't move at all. When volatility increases and price does not, look for a breakout to occur. Use MACD Histogram divergence to confirm with Stochastic on direction and strength. If it is the same on all timeframes you will have a stronger breakout.
![MQL5 - Language of trade strategies built-in the MetaTrader 5 client terminal](https://c.mql5.com/i/registerlandings/logo-2.png)
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
Just wanted to know if anyone knows a way to predict when a breakout is about to occur.