3 Candle Breakout EA for MT4 – Simple, Price Action-Based Trading
3 Candle Breakout EA is a Price Action-based expert advisor for MetaTrader 4 that focuses on one of the most recognizable market behaviors: breakouts following short consolidations formed by three candles.
Unlike complex grid or averaging systems, this EA relies on a clear, structural market concept. It monitors recent price action, waits for a confirmed breakout beyond a defined range, and enters the market with fixed Stop Loss and Take Profit levels. This makes it a transparent, easy-to-follow system for traders who prefer clarity in trade logic.
Recommended Settings for 3 Candle Breakout EA
- Currency Pairs: EURUSD, GBPUSD, USDJPY, AUDUSD (low-spread majors recommended)
- Timeframes: M15, M30, H1
- Minimum Deposit: $100–$300 (starting with 0.01 lot)
- Leverage: 1:100 or higher
- Account Type: ECN / Raw Spread recommended
- Max Spread Control: Default 3 pips to avoid poor market conditions
Proper account selection and spread monitoring are crucial, especially during volatile sessions or major news events.
Features of 3 Candle Breakout EA
- Trades based on a 3-candle breakout structure
- Adjustable breakout buffer (default 5 pips)
- Fixed Stop Loss and Take Profit
- Spread filter to avoid poor market conditions
- Optional break-even and trailing stop functionality
- Optional recovery martingale after a loss with lot multiplier control
- Maximum lot cap for risk management
- Auto reset to base lot after profitable trades
- Magic number support for multi-EA setups
This EA provides full control over risk management while keeping trading logic simple and disciplined.
Trading Strategy
Core Concept:
- Analyze the last three candles to define a local high and low.
- Trigger a trade when price breaks above or below this range, factoring in the configurable breakout buffer (default 5 pips).
- Default Stop Loss: 50 pips | Take Profit: 100 pips, giving a natural 1:2 risk-to-reward ratio.
- Trailing stop activates at a configurable profit threshold to lock in gains.
- Optional recovery (martingale) can double lot size after a losing trade but should be used with caution.
Buy Signal: Price breaks above the highest high of the last three candles plus the breakout buffer.
Sell Signal: Price breaks below the lowest low of the last three candles minus the breakout buffer.
This system only responds to structural expansion beyond recent price compression, avoiding random trades and maintaining disciplined entries.
Conclusion
3 Candle Breakout EA is a technically disciplined MT4 expert advisor that simplifies trading by focusing on clear price action breakout logic. Its fixed risk-to-reward structure provides transparency and predictability for traders who prefer non-grid, non-averaging systems.
✅ Ideal for traders seeking controlled exposure on major pairs with stable spreads
✅ Easy-to-understand entry and exit logic based on short-term Market Structure
⚠️ Forward testing and proper lot management are essential before deploying this EA with live capital.
