The Envelopes Forex Reversal indicator for MT4 finds profitable trend reversal signals for any currency pair on the chart.
This indicator creates low-risk trade opportunities and appears in the main MT4 chart window as white buy/sell arrows.
Envelopes Forex Reversal can be used in multiple ways.
Buy and Sell Example
- Open a buy trade when the white up arrow gets printed on the chart.
- Open a sell trade when the white down arrow gets printed on the chart.
The Envelopes Forex Reversal indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “envelope-reverse.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Envelope Reverse MT4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy when trading with the Envelopes Forex Reversal indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Reversal
Does the indicator repaint? No.
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.
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Download the “envelope-reverse.mq4” indicator for Metatrader 4
