FIP Forex Reversal is a free mt4 (Metatrader 4) indicator that identifies major trend reversals and displays a buy or sell arrow on the chart.
The indicator appears in the main MT4 chart window as a green-colored buy or sell arrow.
For scalping, the indicator tends to work the best during the London and U.S. trading sessions.
Buy & Sell Trade Example
- A green UP arrow represents a bullish trend reversal.
- A green DOWN arrow represents a bearish trend reversal.
The FIP 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 exotics) and shows promising results when used correctly.
Free Download
Download the “FIP.ex4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the FIP Forex Reversal mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the FIP 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.
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.
Why This Works & For Whom
The FIP Reversal indicator gives visual arrows when price may reverse—green upward arrows for bullish reversals and green downward arrows for bearish reversals.
But reversal signals alone can be noisy in intraday markets.
The SuperTrend MTF adds a trend filter: you only take reversal signals that align with the direction of the trend from a higher timeframe or multiple timeframes.
This combination helps you avoid fading strong momentum.
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—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.
