Retracement Finder Indicator

Retracement Finder Indicator

Forex market trend finder from the best Retracement Finder Indicator for MT4. Find trend reversals.

The Retracement Finder Indicator is a simple MT4 indicator that finds market retracements. By retracements, we mean market reversals. Generally, retracements occur when the price pulls back after a strong uptrend or downtrend.

The Retracement Finder Indicator uses the same principle to find key market reversals. There are two aspects of the indicator; zero line, and bars. The zero line act as a middle line; whenever the bars go above or below it, we can find market reversals. The other aspect of the indicator is the bars. These bars come in three colors; yellow, magenta, and aqua.

The aqua bars represent an uptrend, the yellow bars illustrate a downtrend, and the magenta bars mention a strong trend. It can either be an uptrend or a downtrend. The Retracement Finder Indicator works on every time timeframe, but it’s better to use it on a longer timeframe to avoid market noise and capture larger reversals rather than shorter ones.

How to use the Retracement Finder Indicator for MT4?

The above USD/JPY H4 chart shows the Retracement Finder Indicator’s BUY/SELL signals. You have to look at the bars to find the BUY/SELL signals. When the yellow bars appear, it means bulls are starting to lose strength, and we can anticipate a bearish reversal. On the other hand, if the aqua bars emerge, it suggests the weakening of a bearish trend and the start of a bullish trend.

These bars can act as a trend continuation. For instance, if the indicator plots aqua bars consistently, it illustrates an uptrend. A key point to remember is magenta bars appear when there is a strong bullish or bearish momentum. Usually, this happens when there is a news event. These bars can be used as trend reversal. However, it’s best to avoid taking positions at magenta bars and wait for trend confirmation. In addition, when there is a period of consolidation, the indicator can switch between yellow and aqua bars.

For example, before a major news event, the market participants may not choose one side, leading to a consolidation phase. In this case, Retracement Finder Indicator may not work properly. So, you need further signal confirmation. For trend confirmation, you can use other technical indicators like the RSI, MACD, or Stochastics.

Conclusion
The Retracement Finder Indicator for MT4 applies colored bars to find the market reversals. The indicator can be used to find reversal and trend continuation. You can try Retracement Finder Indicator for free by downloading it from our website.