The 5 Bar Reversal Signal MT4 forex indicator is a short-term trend reversal indicator which works well for scalping and intraday trading currency pairs.
A short-term bullish reversal signal occurs when the indicator paints a blue arrow (short-term bullish).
A short-term bearish reversal signal occurs when the indicator paints a red arrow (short-term bearish).
This technical tool can be used as a standalone indicator or in conjunction with other analysis tools or forex technical indicators.
For instance, use it together with Bollinger Bands or the 200 simple moving average and trade in the direction of the longer-term trend.
Use it on low spread currency pairs such as EUR/USD, GBP/USD and USD/JPY.
The EUR/USD Hourly chart below displays the 5 Bar Reversal Signal Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the 5 Bar Reversal Signal MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate a new buy trade when the 5 Bar Reversal Signal forex indicator paints a blue arrow on the activity chart.
Sell Signal: Initiate a new sell trade when the 5 Bar Reversal Signal forex indicator paints a red arrow on the activity chart.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Trend Reversal
Copy and paste the 5-bar-reversal.ex4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)