Reversal indicator mt4 indicator:
The indicator used to detect the change in direction in trend is called the reversal indicator.
Many indicators are used to detect the trend reversal, but not all of them are accurate. This one, however, is a reliable and valid indicator for detecting the change in direction.
Working of reversal indicator mt4:
When you apply this indicator to the charts, you will see yellow dots with blue and red circles around them. This indicator places a yellow dot with a red circle around it at the top of the candle, where the trend starts to go bearish.
Similarly, the indicator is a yellow dot with a blue circle around it at the bottom of the candle, where the trend starts to go bullish.
Settings of reversal indicator for mt4:
In the settings of the reversal indicator, you can change the frequency of the signal by choosing a fast or slow mode, and you can also customize the circle to different shapes around the yellow dot.
Trading strategy for reversal indicator mt4:
Buy signal:
The indicator is giving you a buy signal when it plots a yellow dot with a blue circle around it. You can put your stop loss a few pips below the candle where reversal took place.
Sell signal:
The indicator is giving you a sell signal when it plots a yellow dot with a red circle around it. You can put your stop loss a few pips above the candle where reversal took place.
Conclusion:
Trading only on the basis of reversal indicators is considered very risky. That’s why I always encourage you to use it with other reversal indicators where it can act as a confluence. Using that combination will have a higher probability of a winning signal and can save you stress and losses. One such good indicator is Aroon Indicator.
Download indicator