3 Shade Forex Trend Reversal Indicator (MT4)

About the 3 Shade Forex Trend Reversal Indicator

The 3 Shade Forex Trend Reversal Indicator for MT4 uses a visually shaded yellow background to highlight potential reversal zones along with arrow signals.

It helps traders quickly spot shifts in price direction, making trend reversal entries clearer and more reliable.

Key Features

• Shaded trend zones: Background colors change to signal bullish or bearish bias
• Arrow reversal alerts: Green and red arrows show specific reversal moments
• Fully customizable: Adjust shade opacity, reversal sensitivity, alert types, and visuals
• Multi-timeframe compatible: Works well from M15 up to daily charts
• Non-repainting: Shades and arrows remain static once formed

Free Download

Download the “3shadeopen.mq4” indicator for MT4

How It Works

1. Trend shading: The Indicator evaluates price momentum and colors the background green for bullish, red for bearish.
2. Reversal detection: When momentum weakens inside the shaded zone, an arrow appears to signal a potential reversal.
3. Entry confirmation: The Trader looks for an arrow plus a shaded color change or a squeeze for validation.

Benefits of Using This Indicator

• Visual clarity with shaded zones and arrows
• Reduces the need to monitor candlestick patterns constantly
• Allows easy identification of trend reversals across multiple timeframes
• Non-repainting design ensures trust in historical signals
• Great for swing trading and trend-following strategies

Indicator Example Chart (EUR/USD H1)

How to Trade Using This Indicator

Trade Signals

• Buy: The candlestick closes above the yellow colored box from below, indicating a bullish reversal.
• Sell: The candlestick closes below the yellow colored box from above, indicating a bearish reversal.

Stop‑Loss & Take‑Profit Setup

• Stop‑Loss: Place just below the reversal swing low for Buys or above the swing high for Sells—typically 5–10 pips buffer
• Take‑Profit: Target recent swing highs/lows, aim for 2:1 reward-to-risk; consider trailing stop once reversal confirmed

Example Trade Setup

1. USD/CAD H1: Shade changes from green to red, red arrow appears → Sell signal.
2. Enter on candle close, confirming the arrow and shade shift.
3. Place Stop‑Loss above the recent swing high (~X pips).
4. Target Take‑Profit near next support or apply 2:1 R/R.

Download Now

Download the “3shadeopen.mq4” indicator for Metatrader 4

3 Shade Trend Reversal + ZWinner Trend Strategy for MT4

This strategy combines the early reversal detection of the 3 Shade Forex Trend Reversal Indicator with the trend-following confirmation of the ZWinner Trend Forex Indicator.

By blending both indicators, this method aims to catch high-probability trend reversals while staying in sync with the broader market direction.

What is this Strategy About?

The 3 Shade Indicator highlights potential trend exhaustion zones using price structure and shade-based visual cues.

It helps traders spot early signs of reversals and potential turning points.

On the other hand, the ZWinner Trend Indicator confirms trend direction using a filtered momentum and trend detection algorithm.

By combining the two, the strategy only trades reversals that are supported by confirmed trend transitions, filtering out noise and improving accuracy.

This system is ideal for swing traders and intraday traders who prefer to enter at the beginning of new trends or after a confirmed reversal, rather than chasing price.

Buy Setup Rules

• Look for a bullish reversal signal from the 3 Shade Trend Reversal Indicator (e.g., green shade or signal dot appearing below price).
• Wait for the ZWinner Trend Indicator to confirm an uptrend (e.g., green trend direction).
• Enter a buy trade at the close of the confirmation candle.
• Stop Loss: Place below the recent swing low or below the reversal signal zone.
• Take Profit: Use a 1:2 or 1:3 risk-reward ratio or exit at the next resistance zone.

Sell Setup Rules

• Watch for a bearish reversal signal from the 3 Shade Indicator (e.g., red shade or signal dot appearing above price).
• Confirm that the ZWinner Trend Indicator has turned bearish (e.g., red trend direction).
• Enter a sell trade on the close of the confirmation candle.
• Stop Loss: Set above the recent swing high or above the reversal shade zone.
• Take Profit: Target 2x or 3x your risk or the next support level.

Advantages of the Strategy

• Combines early reversal detection with trend confirmation for higher accuracy.
• Reduces false reversal signals with trend filtering.
• Suitable for M15, M30, and H1 charts for both intraday and swing trading.
• Clear visual indicators make the system beginner-friendly.

Drawbacks

• Reversal signals may appear early and require patience before confirmation.
• Fewer trades due to the double confirmation requirement.
• Sideways markets may generate mixed signals, requiring extra caution.

Strategy Conclusion

The 3 Shade + ZWinner Trend Strategy is a well-balanced approach that identifies reversals backed by real trend shifts.

It avoids premature entries and improves win consistency by ensuring both a reversal trigger and a trend confirmation are present.

This makes it an excellent strategy for disciplined traders who prefer a structured and visual trading system.

Pros & Cons

Pros

• Easy-to-read visuals with shaded zones and arrow signals
• Non-repainting—backtest-friendly
• Effective across a variety of currency pairs and timeframes

Cons

• May lag slightly on rapid reversals
• Can give false signals in choppy, ranging conditions
• No auto-exit logic included—requires trader-defined exits

Indicator Specifications

Final Words

The 3 Shade Forex Trend Reversal Indicator brings together visual trend zoning and precise reversal signals, making MT4 chart analysis intuitive and efficient.

Pair it with solid stop‑loss/take-profit rules and trend confirmation filters for improved consistency.

A great choice for traders focused on clarity and reliability in market reversals.