The Key Reversal Signal Metatrader 5 forex indicator is a technical indicator that shares a lot of similarities with the engulfing price action pattern and is made up of three bars.
Two of the price bars are trend-following, while the third one is such that it absorbs the preceding (second) one.
The indicator adopts a basic configuration setup:
Bullish Fundamental Reversal
this configuration setup is comprised of two bearish bars and a bullish bar (the third bar). The close of the third bar must exceed the high of the previous (second) bar.
Bearish Fundamental Reversal
this configuration setup is comprised of two bullish bars and a bearish bar (third one). The close of the third one must be lower than the low of the previous (second) bar.
The EUR/JPY H1 chart below displays the Key Reversal Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the blue upward pointing arrow of the Key Reversal Metatrader 5 custom forex indicator gets aligned slightly below the candlesticks.
Sell Signal: Go short when the red downward pointing arrow of the Key Reversal Metatrader 5 custom forex indicator gets placed somewhat above the price bars.
Exit buy trade: Close all buy orders if while a bullish trend is running, the Key Reversal indicator pops up a red downward pointing arrow.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the Key Reversal indicator puts on display a blue upward pointing arrow.
Tips: Combining the Key Reversal indicator with other raw candlestick patterns will increase your winning rate.
Adding other technical indicators to the whole mix will aid in eliminating false positives, and further reinforce profitability.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (Trend detection period, Use trend detection filter, Show alerts, Send mails, Send push-notification), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the Key_Reversal.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)