Here we will review the Pipbreaker indicator which has been developed for the ever-popular MetaTrader 4 and MetaTrader 5 platforms. If you haven’t already, you can download the MetaTrader platforms free of charge from a forex broker. It is well known as one of the most user-friendly platforms. If you are looking for a broker, please feel free to brose my best forex brokers page. Pipbreaker can be used on any chart timeframe to spot potential entry and exit signals into any market of your choice. In this Pipbreaker indicator review, we will take a look at what exactly this trading tool does, in order to help you decide if it is something that you would like to implement into your day trading routine.
What is the Pipbreaker Indicator?
Pipbreaker is a technical indicator developed to be used as part of a manual trading strategy. The Pipbreaker indicator will conduct analysis of the chart that it is running on, using a built-in algorithm that runs behind the scenes. It will then display on the charts a clear indication to the user of what it deems the market movement to be. Users can then decide if they would like to use the Pipbreaker signals for entry or exit into the market, or as an additional indicator as part of a more complete trading system.
Personally, I would not take the Pipbreaker signals blindly without my own market analysis. I would conduct my own technical analysis to try and confirm the current market conditions. I would also look at analysing the fundamentals and market sentiment for extra confirmation. Furthermore, I think price action is one of the best ways to try and determine what the market is doing at any given moment, rather than relying on potentially lagging indicators.
How does the Pipbreaker Indicator work?
It’s really simple. You simply choose the trading instruments and chart timeframes that you would like to use. You can then apply the Pipbreaker indicator to your charts and read the signals that it produces. The Pipbreaker strategy is very flexible, it can be used for day trading, scalping and even more long-term swing trading. This makes it available to traders with all different needs.
If you cannot dedicate much time to trading, you may consider the longer-term time frames such as the daily charts. If you have plenty of time and like fast moving action, you could use the lower time frames such as the 5-minute to scalp trades throughout the day.
You can even set it to alert you when there is a trading signal so that you do not need to stare at the charts all day. You could even install the MetaTrader app and get alerted on your mobile device. When there is a signal, you could then enter and manage the position directly via the app. This makes it possible to trade Pipbreaker whilst on the go.
I prefer to trade the 1-hour charts and above as I tend to find this filters out some of the noise from the lower timeframes. I would also look at trading the more popular currency pairs such as the EUR/USD and GBP/USD. This is because they tend to have lots of liquidity which can lead to some good market moves. However, the Pipbreaker indicator can be used on any trading instrument of your choice, including forex, stocks, commodities, precious metals, cryptocurrencies and more.
The developer claims that the Pipbreaker indicator has a 90%+ win rate. I find this slightly misleading due to a number of reasons. This includes the fact that a lot will depend on the money management used, the instrument, the time frame, the market conditions, traders’ discipline and psychology, along with the trading plan. It is too general to make such guarantees.
Think of it this way. If the Pipbreaker indicator had a 90%-win rate but the user had a terrible risk to reward ration where 1 trade would wipe out 10 winning trades in a row, the winning rate wouldn’t actually make any difference. On the other hand, a trading system could have a win rate of just 40% but still make profit if the risk to reward ratio was say 1:3, with a winning trade 3 times greater than a losing trade. There are many variables to consider when talking about win-rate and all online trading involves significant risks that you should be aware of.
That being said, the Pipbreaker indicator does give customizable stop loss and take profit levels. You can take them as they are or adjust according to your own individual preferences. The stop loss levels might not be suitable for all traders. I find that previous support or resistance levels can have a cluster of stop losses as traders often look at these areas collectively.
When trading with the Pipbreaker indicator, you will probably need to pay your broker a commission fee and the spread, which is the difference between the bid and ask price. In order to save on trading costs in the long term, I would consider using an ECN forex broker. They tend to have some of the tightest spreads and most reliable execution speeds from my experience.
Pipbreaker Summary
There is no doubt that the Pipbreaker indicator can pick some god entry and exit signals into the market. It is very flexible as it can be used on any financial market and chart time frame of your choice. It is also easy to setup and interpret the trading signals that it generates.
However, this is not an indicator that I would use by itself. I would want to use other indicators and forms of analysis to confirm all signals and cherry pick trades. Personally, I feel a similar strategy could be created using the default MetaTrader indicators that cost nothing. This indicator is not cheap compared to other forex indicators available. At the same time, I also understand why some traders like things represented in a visually appealing and clear way.
Pipbreaker comes with free installation and setup, along with 24/7 support. If you would like to learn more about the Pipbreaker indicator and see it in action, please feel free to visit the official Pipbreaker website by using the link below.
Pipbreaker
$249
Pros
- Manual Trading Signals
- User Friendly Design
- All types of Trading style
- Dedicated Support
- Trading Session Indications on Chart
- Customizable Indicator Inputs
- Customizable Money Management
- Signal Alert Notifications
- Full Support & Free Setup
- MetaTrader Platforms
Cons
- Takes Time To Learn How To Use
- Not Ideal For Beginners
- Requires Some User Initiative
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