If you’ve traded for a while, you know how frustrating it is to miss a reversal or to get trapped chasing the price right before it turns. The Three Bar Reversal Pattern Indicator for MT4 is built to solve exactly that problem.
This Forex indicator automatically identifies bullish and bearish three-bar reversal patterns, highlighting them on your chart. It also integrates filters like support/resistance levels and trend alignment to eliminate false signals. Whether you’re scalping, day trading, or swing trading, this tool helps you catch short-term tops and bottoms with confidence.
What is the Three Bar Reversal Pattern?
The three-bar reversal is a classic candlestick formation that traders have used to identify reversal points:
- Bullish Three Bar Reversal
- Appears at the end of a downtrend.
- First candle: bearish.
- Second candle: makes a lower low but closes higher than the first candle’s close.
- Third candle: confirms the reversal, often pushing the price higher.
- Bearish Three Bar Reversal
- Appears at the end of an uptrend.
- First candle: bullish.
- Second candle: makes a higher high but closes lower than the first candle’s close.
- Third candle: confirms bearish momentum, signaling a top.
On the chart, the indicator color-codes the bars (blue for bullish, brown for bearish) and can also plot arrows plus support/resistance dots to help visualize where the reversal is most likely to hold.
1ms Latency to Your Broker
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Max Leverage
Small Accounts
Platforms
1:2000
Yes ✅ (Cent)
MT4, MT5
No Commission
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Up to 90% profit splits
Early payout options are available.
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How to Trade with the Three Bar Reversal Indicator
Here’s a simple way many traders use it:
Bullish Setup
- Look for a blue three-bar reversal forming near a support zone.
- Enter a buy trade once the pattern confirms.
- Place a stop-loss below the recent swing low.
- Target the next resistance or ride the trend with a trailing stop.
Bearish Setup
- Watch for a brown three-bar reversal forming near resistance.
- Enter a sell trade after confirmation.
- Stop-loss goes above the swing high.
- Take profit at the next support or trail the position.
Pro tip: Use a trend filter like a moving average or supertrend so you only trade reversals in the direction of the bigger trend. This avoids fading strong moves and minimizes false signals.
Why Traders Love This Indicator
- Clear visual signals (bars, arrows, SR markers).
- Built-in filters for trend and support/resistance.
- Works on all timeframes (scalping, day trading, swing trading).
- Customizable visuals so your chart stays clean.
- Great for entry timing after pullbacks or fading exhausted trends.
This makes it not just a reversal spotting tool, but also a reliable companion for price action traders who want structure without clutter.
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Conclusion
The Three Bar Reversal Pattern Indicator for MT4 is a must-have for traders who want to sharpen their reversal game. By automatically detecting these classic formations and filtering them with trend and SR zones, it saves time and removes a lot of guesswork.
Whether you use it as a standalone system or combine it with Smart Money Concepts, volume analysis, or trend-following strategies, this indicator brings clarity to reversal trading.
Download it today, add it to your charts, and stop missing those crucial turning points in the market.
