About the Envelopes Forex Reversal Indicator
The Envelopes Forex Reversal indicator for MetaTrader 4 is a free tool designed to spot profitable trend reversals.
It appears as white buy and sell arrows on the main MT4 chart, highlighting potential low-risk trade opportunities.
This indicator is suitable for traders of all levels and works effectively on all currency pairs, including majors, minors, and exotic pairs.
Its signals help identify short-term trend reversals, making it ideal for scalping and day trading.
The Envelopes Forex Reversal indicator can also complement other strategies as a confirmation tool for trade entries.
With its straightforward signals and adaptability across different timeframes, the indicator provides traders with a practical way to monitor market movements and act on potential reversals quickly.
Free Download
Download the “envelope-reverse.mq4” indicator for MT4
Key Features
- Displays white buy and sell arrows directly on the MT4 chart
- Identifies potential trend reversal points
- Suitable for scalping and day trading
- Provides low-risk trade opportunities
- Can be used alone or combined with other indicators
Indicator Chart
The chart below shows the Envelopes Forex Reversal indicator in action.
White arrows mark potential trend reversals. Buy arrows indicate bullish momentum, while sell arrows indicate bearish momentum.
Traders can use these signals to enter trades with higher probability setups.
Guide to Trade with Envelopes Forex Reversal Indicator
Buy Rules
- The white up arrow appears on the chart
- Confirm price action aligns with the arrow direction
- Open a buy trade when the arrow signals a trend reversal
Sell Rules
- The white down arrow appears on the chart
- Confirm price action aligns with the arrow direction
- Open a sell trade when the arrow signals a trend reversal
Stop Loss
- Use a fixed pip stop (e.g., 12–30 pips) depending on pair volatility
- Adjust slightly for high-volume sessions like London or New York
- Keep risk consistent by sizing positions appropriately
Take Profit
- Set a fixed pip target or close the trade when the opposite arrow appears
- Maintain a risk-reward ratio of at least 1:1.5
Envelope Reversal + Supertrend NRP MT4 Intraday Strategy
Introduction
This intraday strategy combines the Envelope Reversal Indicator and the Supertrend NRP Indicator on the MT4 platform to identify high-probability reversal points and trend shifts.
The Envelope Reversal Indicator helps detect overbought and oversold conditions, while the Supertrend NRP Indicator provides clear trend direction signals.
Buy Entry Rules
- The Envelope indicator produces a white buy arrow.
- The Supertrend NRP Indicator turns green, signaling a bullish trend.
- Enter a buy position at the close of the candle that confirms both conditions.
- Stop Loss: Place below the recent swing low or a fixed number of pips, depending on the currency pair’s volatility.
- Take Profit: Set at a risk-to-reward ratio of 1:2 or at the next significant resistance level.
Sell Entry Rules
- The Envelope indicator produces a white sell arrow.
- The Supertrend NRP Indicator turns orange, signaling a bearish trend.
- Enter a sell position at the close of the candle that confirms both conditions.
- Stop Loss: Place above the recent swing high or a fixed number of pips, depending on the currency pair’s volatility.
- Take Profit: Set at a risk-to-reward ratio of 1:2 or at the next significant support level.
Advantages
- Combines two reliable indicators to confirm trade entries, reducing the likelihood of false signals.
- Suitable for various currency pairs and timeframes, offering flexibility in trading.
- Clear entry and exit rules help maintain discipline and consistency in trading decisions.
- Risk-to-reward ratio of 1:2 promotes favorable trade outcomes over time.
Drawbacks
- May produce fewer signals during low volatility periods, potentially missing trading opportunities.
- Requires active monitoring of the charts to identify valid entry points.
- Not suitable for traders who prefer automated trading systems.
Example Case Study 1 — EUR/USD, 15m
During a period of consolidation, the Envelope indicator signaled a buy trade.
Simultaneously, the Supertrend NRP Indicator turned green, signaling a potential bullish trend.
A buy position was entered at the close of the confirming candle.
The price moved upward, hitting the take profit target at the next resistance level, resulting in a successful trade.
Example Case Study 2 — GBP/USD, 5m
After a strong upward movement, the Envelope indicator signaled a sell reversal trade.
The Supertrend NRP Indicator then turned red, signaling a potential bearish trend.
A sell position was entered at the close of the confirming candle.
The price declined, reaching the take profit target at the next support level, yielding a profitable trade.
Strategy Tips
- Always confirm signals with higher timeframes to align with the overall market trend.
- Adjust stop loss and take profit levels based on the volatility of the currency pair being traded.
- Consider using additional indicators, such as RSI or MACD, to further validate trade entries.
- Regularly review and adjust the strategy based on changing market conditions and personal trading performance.
Download Now
Download the “envelope-reverse.mq4” indicator for Metatrader 4
FAQ
How does the Envelopes Forex Reversal indicator generate signals?
The indicator uses envelope bands to detect potential trend reversals. When price interacts with these levels, it plots white arrows to indicate possible buy or sell opportunities.
Can it be used on all timeframes?
Yes, it can be applied to any timeframe. Shorter timeframes are better for scalping, while higher timeframes help spot larger trend reversals.
Does the indicator work with all types of currency pairs?
Yes, it works on major, minor, and exotic currency pairs, providing reversal signals regardless of the market volatility.
Is it suitable for combining with other indicators?
Absolutely. While it can be used alone, combining it with trend indicators or momentum tools can improve signal reliability and filter false reversals.
Summary
The Envelopes Forex Reversal indicator is a reliable MT4 tool for spotting trend reversals and low-risk trade opportunities.
Its white arrows provide clear signals for buy and sell trades across all currency pairs.
With its simplicity and adaptability, traders can use it alone or as part of a broader strategy to improve trade accuracy and decision-making.
