MRS Forex Reversal Signal is a free mt4 (Metatrader 4) indicator that provides accurate trend reversal levels in the currency market.
The indicator can be used as a standalone trading tool for both trade entry and exit.
It can also be used as an additional counter-trend filter that works together with an existing strategy or system.
Buy & Sell Trade Example
- A blue symbol is a bullish trend reversal signal.
- A red symbol is a bearish trend reversal signal.
For scalping on the lower time frames, the indicator performs best during the London and New York trading sessions.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “mrs-indicator.mq4” indicator for MT4
Indicator Chart (EUR/USD H4)
The example chart below displays the MRS Forex Reversal Signal mt4 indicator in action.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the MRS Forex Reversal Signal 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: Trend reversal
Does the indicator repaint? No.
MRS Reversal and AMA Forex Trend Strategy For MT4
The MRS Forex Reversal Signal Indicator and the AMA Signals Indicator for MT4 work together to form a reliable reversal and trend-following system.
This strategy helps traders identify turning points early while confirming the direction of the new trend.
It is suitable for the M15, H1, and H4 time frames and fits both day traders and swing traders who prefer structured and visually clear setups.
The MRS indicator plots a blue symbol to indicate a bullish reversal and a red symbol to mark a bearish reversal.
The AMA indicator confirms the trend direction with a blue line for bullish movement and a brown line for bearish conditions.
Using both tools together filters out false reversals and increases confidence when entering a position.
Buy Entry Rules
- Wait for a blue symbol to appear on the MRS indicator, showing a possible bullish reversal.
- Confirm that the AMA line turns blue to signal the start of an upward trend.
- Enter a buy trade at the next candle’s open once both indicators agree.
- Place a stop loss below the latest swing low.
- Set take profit when the AMA line changes to brown or after reaching a 1:2 risk-reward target.
Sell Entry Rules
- Wait for a red symbol to appear on the MRS indicator, signaling a potential bearish reversal.
- Confirm that the AMA line turns brown, showing a downward trend.
- Enter a sell trade at the next candle’s open after both confirmations are in place.
- Set a stop loss above the recent swing high.
- Take profit when the AMA line turns blue or after reaching a 1:2 risk-reward ratio.
Advantages
- Combines early reversal detection with adaptive trend confirmation.
- Reduces false signals during unpredictable market phases.
- Works on most major currency pairs and higher time frames.
- Simple visual layout makes it beginner-friendly.
- It can be used for both day trading and swing trading.
Drawbacks
- Produces fewer signals in sideways markets.
- Confirmation delays may cause slightly later entries.
- Not ideal for scalping on lower time frames like M1 or M5.
- Performance can vary depending on market volatility.
Case Study 1: EUR/USD H1 Example
On the EUR/USD H1 chart, a blue MRS symbol appeared near the end of a short downtrend.
Shortly after, the AMA line switched from brown to blue, confirming the start of a bullish trend.
A buy trade was opened at 1.0720 with a stop loss at 1.0695.
The price climbed steadily to 1.0785, producing a gain of around 65 pips before the AMA line turned brown again, signaling an exit.
Case Study 2: GBP/JPY H4 Example
During a strong uptrend on the GBP/JPY H4 chart, the MRS indicator printed a red symbol, showing a possible bearish reversal.
A few candles later, the AMA line turned brown, confirming the new downward direction.
A short trade was opened at 186.40 with a stop loss at 186.90.
Within two trading days, the price fell to 184.90, achieving about 150 pips in profit before the AMA turned blue again.
Strategy Tips
- Always wait for both indicators to align before entering a trade for better accuracy.
- Focus on higher time frames to reduce market noise and false reversals.
- Adjust stop losses according to the volatility of each currency pair.
- Avoid trading during major economic announcements when reversals may be unreliable.
- Use a trailing stop to lock in profits during strong trend continuations.
This combined MT4 strategy offers a balanced approach to reversal and trend trading.
The MRS indicator identifies turning points, while the AMA line filters and confirms the trend direction.
When used together, they provide a clear and disciplined trading framework that can improve decision-making and consistency over time.
