About the FIP Forex Reversal Indicator
The FIP Forex Reversal Indicator for MT4 is a momentum and trend-based tool designed to identify potential turning points in the market.
Analyzing price action patterns highlights areas where trends are likely to reverse, providing traders with timely buy and sell signals.
Displayed as green arrows directly on the main MT4 chart, the indicator signals bullish reversals with an upward arrow and bearish reversals with a downward arrow.
This visual approach helps traders quickly spot opportunities and adjust positions accordingly.
While suitable for all traders, FIP Forex Reversal is particularly effective for scalping during high-volume trading sessions like London and U.S. hours.
It works across currency pairs and multiple timeframes, making it a versatile addition to any trading strategy.
Free Download
Download the “FIP.ex4” indicator for MT4
Key Features
- Detects potential trend reversals in real time
- Displays green arrows for bullish and bearish reversals
- Effective for scalping, especially during London and U.S. sessions
- Helps traders time entries and exits more accurately
- Simple to use while providing actionable signals for experienced traders
Indicator Chart
The chart shows FIP Forex Reversal arrows marking potential trend changes.
Upward arrows indicate bullish reversals, while downward arrows suggest bearish reversals.
Traders can use these signals to enter trades in the direction of the new trend or exit positions before a trend change occurs.
Guide to Trade with FIP Forex Reversal Indicator
Buy Rules
- Open a buy trade when an upward green arrow appears on the chart.
- Check that the prior trend was bearish to confirm a reversal signal.
- Use the next candle’s open as the entry point for higher probability.
Sell Rules
- Open a sell trade when a downward green arrow appears.
- Confirm that the prior trend was bullish before entering.
- Enter at the opening of the following candle for a smoother entry.
Stop Loss Placement
- For buy trades, place the stop below the most recent swing low or below the low of the arrow candle for tighter risk control.
- For sell trades, place the stop above the most recent swing high or above the high of the arrow candle.
- Alternatively, use Average True Range (ATR) to calculate a dynamic stop distance based on current volatility.
Take Profit Targets
- Set take profit near previous support/resistance levels or pivot points.
- Consider partial exits when the trend shows signs of slowing down.
- Trailing stops can be used to lock in profits as the new trend develops.
Practical Trading Tips
- Best used during London and U.S. trading sessions for maximum accuracy.
- Combine with trend indicators or moving averages to filter false reversals.
- Observe higher timeframe trends to increase confidence in signals.
- Use multiple currency pairs to spot trending markets with higher liquidity.
- Adjust arrow colors and alert settings for better visibility on the chart.
MT4 Intraday Strategy Using FIP Forex Reversal and SuperTrend MTF Signal
This intraday strategy blends the reversal signals from the FIP Forex Reversal Indicator with trend-filtering from the SuperTrend MTF Forex Signal Indicator.
The idea is to catch reversals within the context of an underlying trend.
By filtering reversal arrows through the SuperTrend’s multi-timeframe direction, you reduce false entries and improve trade quality.
This strategy is aimed at intraday traders using timeframes like M5, M15, or M30. It is not for long-term trades.
It suits traders who like defined entries and exits, with tight risk control and multiple trades per day.
Buy Entry Rules
- The SuperTrend MTF indicator must show a green bullish signal line.
- A green upward arrow appears from the FIP Forex Reversal indicator.
- Enter a buy trade at the close of the candle that shows the arrow (provided the SuperTrend condition holds).
- Set the stop loss a few pips below the recent swing low or below the reversal candle’s low.
- Set take profit at risk-to-reward 1.5:1 or 2:1, or at the next intraday resistance zone.
Sell Entry Rules
- The SuperTrend MTF must show a red bearish signal line.
- A green downward arrow appears from the FIP Forex Reversal indicator.
- Enter a sell trade at the close of the candle that shows the downward arrow (if still aligned with SuperTrend).
- Set stop loss a few pips above the recent swing high or above the reversal candle’s high.
- Set take profit at a 1.5:1 or 2:1 ratio or target the next intraday support zone.
Advantages
- Combines reversal signals with trend direction to filter noise.
- Clear visual signals make entries easier to spot.
- Works well in trending intraday markets while avoiding counter-trend traps.
- Reasonable trade frequency if you trade active pairs during volatile sessions.
Drawbacks
- May miss strong reversal trades that occur against the trend if you’re too strict.
- Less effective in choppy or sideways markets, where arrows might fire repeatedly.
- Requires practice to time entries, manage stops, and avoid whipsaws.
- Depending on indicator settings, signal delays might reduce profit potential.
Case Study 1: EUR/USD on 15-Minute Chart
During a London session, SuperTrend MTF showed bullish direction.
Later, a green upward arrow from the FIP Reversal indicator appeared after a pullback. All conditions aligned.
A buy trade was entered at the close of that candle with a stop loss just under the swing low and take profit set at a 2:1 reward.
The trade ran continuously and hit the target, yielding a clean intraday scalp while staying in trend.
Case Study 2: GBP/CHF on 5-Minute Chart
In early New York hours, the SuperTrend MTF flipped to bearish.
Shortly after, the FIP indicator generated a green downward arrow following a small retracement.
Entry was taken at the arrow candle’s close with a stop just above the swing high.
Price headed downward sharply, and the trade hit TP before the end of that intraday range.
This confirmed how reversal + trend alignment can capture quick intraday moves.
Strategy Tips
- Always trade major and liquid pairs (EUR/USD, GBP/USD, USD/JPY, etc.) to ensure tight spreads and reliability.
- Use the higher timeframe SuperTrend (e.g., H1 or H4) as extra confirmation and only take trades that align with that higher trend.
- Avoid trading right before major news events, when reversals and whipsaws are more frequent.
- Backtest the indicator settings (arrow sensitivity, SuperTrend periods) on historical intraday data to find the best combination for your preferred pair.
- Consider partial profits if the price moves strongly, and trail your stop to lock in gains.
Download Now
Download the “FIP.ex4” indicator for Metatrader 4
FAQ
When should I open a trade using the FIP Forex Reversal?
Open a buy trade when an upward arrow appears after a downtrend and a sell trade when a downward arrow appears after an uptrend.
Timing the entry with the next candle often improves accuracy.
Can this indicator be used for scalping?
Yes. It works particularly well during London and U.S. trading sessions when market volatility is higher, allowing for quick reversals and intraday opportunities.
Is it necessary to use other indicators with FIP Forex Reversal?
No. The arrows alone provide clear entry and exit points. However, combining with trend confirmation or support/resistance levels can help filter false signals.
Does it work on all timeframes?
Yes. The indicator can be applied on any timeframe, though it tends to be more reliable on M15, M30, H1, and H4 charts where trend reversals are more pronounced.
Summary
The FIP Forex Reversal Indicator for MT4 is a practical tool for spotting potential trend reversals using clear arrow signals.
It helps traders enter trades at optimal points, improving timing and trade accuracy.
Its simplicity makes it suitable for beginners, while experienced traders can integrate it into larger strategies for confirmation.
When combined with volume analysis, support/resistance, or trend-following indicators, it provides a robust way to capture profitable reversals across multiple currency pairs and timeframes.
