The indicator to detect the trend’s direction change is the reversal forex indicator.
Many indicators detect the chart trend reversal, but not all are accurate. This one, however, is a good and valid forex indicator for detecting the change in direction.
Working of reversal forex indicator mt4
When you apply this forex indicator to the charts, you will see yellow color dots with blue and red color circles around them. This indicator places a yellow color dot with a red color circle around it at the top of the chart candle, where the chart trend starts to go bearish.
Similarly, the forex indicator is a yellow color dot with a blue circle around it at the bottom of the chart candle, where the trend starts bullish.
Settings of reversal forex indicator for mt4
In the settings of the reversal forex indicator, you can change the frequency of the entry signal by choosing a slow or fast mode, and you can customize the color circle to different shapes around the yellow dot.
Trading strategy for reversal forex indicator mt4
Buy entry signal
The indicator gives you a buy entry signal when it plots a yellow color dot with a blue circle around it. You can put your stop loss(SL) a few pips below the candle where the reversal occurred.
Sell entry signal
The indicator gives you a sell signal when it plots a yellow color dot with a red circle around it. You can put your stop loss(SL) a few pips above the candle where the reversal occurred.
Trading only based on reversal indicators is considered very risky. That’s why We 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.