Of the countless trend reversal indicators all around the MT4 community, some of them are nothing to write home about, while some others are decent. The Forex Reversal Indicator falls in the category of the decent.
Its indicator is one of the most reliable reversal indicators. It appears on your charts in the form of yellow dots coated in red and blue rings. The yellow dot in red rings appears at market tops to signify a reversal to downtrends. Blue rings around yellow dots suggest a reversal to the uptrend.
How to use Forex Reversal Indicator in your trading
The first impulse of many forex traders might be to avoid this trend reversal indicator because it tends to repaint signals. However, there are ways to use the indicator without having much trouble when it repaints.
Combining our indicator with other trend trading indicators
Let’s use the FXSSI Trix Crossover indicator as our other trend trading indicator, for instance. Open it alongside the trend reversal indicator on your MT4. All you then need to do is to trade in the direction of the trend. If our reversal indicator says the market has reversed to an uptrend, use the Trix Crossover to make all uptrend trades as long as the trend remains. And when the indicator changes its bias to a downtrend, use the Trix Crossover to scout for downtrend entries alone.
Trading the signals of the forex reversal indicator
This is a riskier method to use this indicator since it repaints its signals. A way around this is to only use the signals in confluence with signals from other technical analysis tools. The technical analysis tools could be simple resistance and support levels, indicators, price action, or more. When more technical analysis tools confirm the signals of the forex reversal indicator, the signals have more credibility.
Setting
Forex reversal indicator gives a lot of room for traders to tweak it. There are several options in the settings menu of the indicator, and many have effects on the signals it provides. Here are the options:
- Period 1, Period 2 Period 3: Fast, medium, slow ZigZag periods. The longer the period, the fewer signals.
- Dev_Step_1, Dev_Step_2, Dev_Step_3: Invokes the appearance of red and blue rings which show minor tops and bottoms within major market bottoms and tops. The less the number, the more rings appear.
- Symbol_1_kod, Symbol_2_kod, Symbol_3_kod: Determines the appearance of blue, yellow, and red rings for tops and bottoms.
- Box_Alerts: To show an alert box when a new signal appears.
- Email_Alerts: To receive alerts in the mail when a new signal appears.
- Sound_Alerts: Makes sounds when a new signal appears.
- Alert_Lv1, Alert_Lv2, Alert_Lv3: Alert for fast, medium, slow ZigZag.
Who is The Forex Reversal Indicator Best For?
Indicator is best for expert and intermediate forex traders. These traders may already have some experience in combining different strategies and tools to get trading signals. Also, traders, such as swing and position traders, who trade on higher timeframes might find more reliable signals using this trend reversal indicator. Scalpers should steer clear of this indicator.
