About the Forex Trend Reversal Signals Indicator
The Forex Trend Reversal Signals indicator for MT4 is designed to identify potential market turning points with minimal complexity.
It focuses on spotting shifts in market direction early, allowing traders to react before a new trend gains momentum.
Once added to the chart, the indicator displays colored trend bars positioned slightly above or below the candlesticks.
These bars change color to reflect bullish or bearish reversal conditions, making signals easy to recognize even in fast-moving markets.
The indicator can be traded on its own or combined with other tools for added confirmation.
It adapts well to different trading styles and performs best during active market sessions, particularly on major currency pairs such as EUR/USD, GBP/USD, and USD/JPY.
Free Download
Download the “MA HISTOGRAM v 1.10.ex4” MT4 indicator
Key Features
- Identifies bullish and bearish trend reversals.
- Appears directly on the main price chart.
- Suitable for scalping, day trading, and swing trading.
- Can be used as a standalone system or with other indicators.
- Works on all currency pairs and timeframes.
Indicator Chart
Example chart showing the Forex Trend Reversal Signals indicator applied to a major currency pair.
The chart highlights blue and red trend bars appearing near price action.
These bars indicate potential reversal zones where traders can prepare for new directional moves.
Guide to Trade with Forex Trend Reversal Signals
Buy Rules
- Wait for the trend bars to change color from red to blue.
- Open a buy trade after the color change is confirmed.
- Trade preferably during active market sessions.
Sell Rules
- Wait for the trend bars to change color from blue to red.
- Open a sell trade after the color change is confirmed.
- Focus on major currency pairs for better reliability.
Stop Loss
- Place the stop loss beyond the most recent swing high or swing low.
- Adjust the stop loss distance based on current market volatility.
Take Profit
- Target the next visible support or resistance level.
- Use a fixed risk-to-reward ratio such as 1:2 or higher.
Forex Trend Reversal + Wildan Trend MT4 Scalping Strategy
This MT4 scalping strategy combines the Forex Trend Reversal Signals MT4 Indicator and the Wildan Trend System Forex Indicator MT4.
The Forex Trend Reversal indicator shows blue bars for buy signals and red bars for sell signals, while the Wildan Trend System uses a blue histogram for bullish trends and a red histogram for bearish trends.
This setup is ideal for fast scalping on M1 and M5 charts, helping traders capture short-term price moves on major currency pairs during high-volatility sessions.
Buy Entry Rules
- Confirm that the Wildan Trend histogram is blue, indicating a bullish trend.
- Enter a buy trade when the Forex Trend Reversal indicator shows blue bars aligned with the blue histogram.
- Place a stop loss a few pips below the recent swing low or the low of the signal bar.
- Set a take profit of 5–12 pips for M1 charts and 10–20 pips for M5 charts, or close when the Wildan histogram turns red or red bars appear.
Sell Entry Rules
- Confirm that the Wildan Trend histogram is red, indicating a bearish trend.
- Enter a sell trade when the Forex Trend Reversal indicator shows red bars aligned with the red histogram.
- Place a stop loss a few pips above the recent swing high or the high of the signal bar.
- Set a take profit of 5–12 pips for M1 charts and 10–20 pips for M5 charts, or close when the Wildan histogram turns blue or blue bars appear.
Advantages
- Combines trend confirmation (Wildan histogram) with precise reversal signals (colored bars) for high-probability entries.
- Effective for very short-term scalping on M1 and M5 charts.
- Visual indicators are easy to interpret and execute quickly.
- Works well on major pairs with high liquidity and active sessions.
Drawbacks
- Rapid trading on M1 charts can be mentally demanding and increases the chance of execution errors.
- Indicators may lag slightly in sudden reversals, potentially triggering stop losses.
- Requires constant monitoring due to fast timeframes; not suitable for passive traders.
Case Study 1: EURUSD M1 Chart
During the London session, EURUSD showed a blue Wildan histogram.
The Forex Trend Reversal indicator displayed blue bars at 1.0825.
A buy trade was entered at 1.0825 with a stop at 1.0818.
Price moved to 1.0837, securing 12 pips before red bars appeared and the histogram turned red, prompting exit.
Case Study 2: GBPUSD M5 Chart
In the New York session, GBPUSD had a red Wildan histogram.
Red bars appeared at 1.2658 from the Forex Trend Reversal indicator.
A sell trade was entered at 1.2658 with a stop at 1.2670.
Price dropped to 1.2635 (23 pips) before blue bars appeared and the histogram turned blue, signalling the exit.
Strategy Tips
- Use highly liquid pairs such as EURUSD, GBPUSD, USDJPY, and AUDUSD for tighter spreads.
- Prefer active trading sessions when volatility is higher to increase signal reliability.
- Manage risk carefully: keep trade size small and risk 0.5–1% of account per trade.
- Consider using trailing stops on M5 trades to capture extended moves without risking too much on reversals.
Download Now
Download the “MA HISTOGRAM v 1.10.ex4” MT4 indicator
FAQ
How are reversal signals generated?
Signals are generated when internal trend conditions shift and the indicator bars change color, signaling a possible change in market direction.
Is this indicator suitable for short-term trading?
Yes. It performs well for scalping and day trading, especially during the London and American sessions.
Can the indicator be combined with other tools?
Yes. Many traders combine it with support and resistance analysis or momentum indicators for additional confirmation.
Does the indicator work on all pairs?
It works on any currency pair, though major pairs tend to provide more consistent results.
Summary
The Forex Trend Reversal Signals indicator for MT4 provides a simple way to spot potential trend changes using clear color-based signals.
Its flexibility allows traders to apply it across different timeframes and trading styles.
With straightforward visual cues and adaptable trade management rules, the indicator is easy to integrate into existing strategies.
It also supports disciplined execution in both short-term and longer-term market conditions.
