5 Bar Reversal Indicator

5 Bar Reversal Indicator

5 Bar Reversal Indicator For MT4 provides buy and sell forex trading signals if the price moves 5 consecutive bullish or bearish candles

The 5 bar reversal indicator for MT4 provides buy and sell forex trading signals based on the 5 bar theory. The theory states that prices expected to reverse after 5 consecutive bullish or bearish candles. Though the indicator provides trading signals traders should use additional indicators for confirmation. As a result, traders can look for reversal signals and buy and sell accordingly.

The indicator provides up and down arrows and is easy for new and advanced traders. Moreover, trader the indicator works well in all chart time frames including the daily, weekly and monthly charts. So, it caters to a wide range of forex trading strategies from scalping to long term trading.

5 Bar Reversal Indicator For MT4 Trading Signals

The indicator provides red down arrow to indicate a bearish forex trading signal. Similarly, a yellow up arrow signals an upmove. After the closing of 5 consecutive candles the indicator may provide multiple trading signals in the same direction.

The trading strategy is simple and straight forward and is based on the arrows. Traders can enter a BUY trade once the indicator provides an up arrow with a stop loss below the previous swing low. On the other hand, traders can look to book profits on an opposite trading signals or with a good risk reward ratio.

Forex traders can use the similar technique for entering sell positions; however, the indicator helps to anticipate a potential price reversal. So, traders should use the indicator in confluence with others for technical analysis and trade confirmation.

Conclusion
The 5 bar reversal indicator for MT4 is a simple yet powerful indicator for forex traders using this theory. However, the indicator may provide multiple trading signals in a trending market.