About the Simple Forex Reversal Indicator
The Simple Forex Reversal Indicator for MT4 is designed to detect early changes in market direction.
It uses an enhanced trading algorithm to analyze price behavior and momentum shifts before a new trend develops.
This allows traders to position themselves near potential turning points instead of entering late.
The indicator appears directly in the main Metatrader 4 chart window as yellow bullet-style dots.
Each dot highlights a possible bullish or bearish reversal area.
By focusing on early signals, the indicator helps traders capture larger portions of new price moves.
It is especially useful for traders who prefer anticipating market turns rather than following established trends.
Free Download
Download the “forex-reversal-indicator.mq4” indicator for MT4
Key Features
- Early trend reversal detection using advanced logic
- Yellow bullet dots plotted on the main MT4 chart
- Highlights both bullish and bearish reversal zones
- Helps traders enter near potential turning points
- Works across multiple timeframes and currency pairs
- Suitable for reversal and counter-trend strategies
Indicator Chart
The chart below shows the Simple Forex Reversal Indicator applied to a live MT4 chart.
Yellow dots mark areas where price may reverse direction.
These signals help traders anticipate momentum shifts and prepare early entries.
Guide to Trade with the Simple Forex Reversal Indicator
Buy Rules
- Wait for a yellow dot to appear after a bearish price move
- Confirm price shows signs of slowing or rejecting lower levels
- Enter a buy trade at the opening of the next candle
Sell Rules
- Wait for a yellow dot to appear after a bullish price move
- Confirm price shows signs of rejection near recent highs
- Enter a sell trade at the opening of the next candle
Stop Loss
- Place the stop loss a few pips beyond the reversal dot
- Alternatively, set the stop below the signal candle for buys
- For sells, place the stop above the signal candle high
- Widen stops slightly on higher timeframes to avoid noise
Take Profit
- Target the next key support or resistance zone
- Use a minimum risk-to-reward ratio of 1:2
- Trail stops once price confirms the new direction
Practical Tips
- Use higher timeframes to filter low-quality reversal signals
- Avoid trading reversals during strong trending markets
- Combine with a trend or momentum filter for confirmation
- Reduce position size when trading against the prior trend
- Backtest the indicator to understand the typical reversal depth
Simple Forex Reversal + Wajdyss Ichimoku Scalper MT4 Scalping Strategy
This MT4 scalping strategy combines the Simple Forex Reversal Indicator and the Wajdyss Ichimoku Forex Scalper Indicator to capture short-term market reversals with precision.
The Simple Forex Reversal Indicator predicts potential trend reversals using yellow dots—on top for a downtrend and at the bottom for an uptrend.
The Wajdyss Ichimoku Scalper Indicator confirms entry signals with green arrows for buys and red arrows for sells.
This strategy is best suited for scalpers using 1-minute to 15-minute charts.
Buy Entry Rules
- Wait for a yellow dot at the bottom of the chart, indicating a potential uptrend reversal.
- Confirm with a green arrow from the Wajdyss Ichimoku Scalper Indicator.
- Enter a buy trade at the close of the candle showing the green arrow.
- Set a stop loss just below the yellow dot to protect against false reversals.
- Set take profit using a 1:1.5 risk-to-reward ratio or at the next resistance level.
Sell Entry Rules
- Wait for a yellow dot at the top of the chart, indicating a potential downtrend reversal.
- Confirm with a red arrow from the Wajdyss Ichimoku Scalper Indicator.
- Enter a sell trade at the close of the candle, showing the red arrow.
- Set a stop loss just above the yellow dot to minimize risk.
- Set take profit using a 1:1.5 risk-to-reward ratio or at the next support level.
Advantages
- Combines reversal prediction and trend confirmation for high-probability entries.
- Optimized for scalping and intraday trading on lower timeframes.
- Predefined stop loss and take profit levels improve risk management.
Drawbacks
- False reversal signals may occur in choppy, sideways markets.
- Requires active chart monitoring due to short-term trade focus.
- Small pip gains per trade require frequent execution to accumulate profit.
- Scalping performance may vary depending on the broker’s execution speed.
Case Study 1: EUR/GBP M5 Chart
A yellow dot appeared at the bottom of the chart, indicating a potential uptrend reversal.
A green arrow from the Wajdyss Ichimoku Scalper confirmed the buy signal.
The trade was opened at 0.8785 with a stop loss at 0.8778.
Price rose to 0.8800, hitting the take profit target in about 10 minutes.
Case Study 2: AUD/USD M5 Chart
A yellow dot appeared at the top of the chart, signaling a potential downtrend reversal.
A red arrow from the Wajdyss Ichimoku Scalper confirmed the sell signal.
The trade was opened at 0.6788 with a stop loss at 0.6796.
Price dropped to 0.6773, reaching the take profit target within 12 minutes.
Strategy Tips
- Use primarily M1 to M5 charts for fast scalping opportunities.
- Avoid trading during major news events to reduce the risk of false signals.
- Always wait for confirmation from both indicators before entering a trade.
Download Now
Download the “forex-reversal-indicator.mq4” indicator for Metatrader 4
FAQ
Does the indicator predict exact market tops and bottoms?
No, it highlights potential reversal zones.
Confirmation from price action improves accuracy.
Can it be used on lower timeframes?
Yes, but lower timeframes produce more signals.
Higher timeframes often provide more reliable reversals.
Does the indicator repaint its dots?
The dots are based on closed candle data.
Once plotted, they remain on the chart.
Summary
The Simple Forex Reversal Indicator for MT4 offers a practical way to spot early trend changes.
Its yellow dot signals help traders anticipate bullish and bearish reversals with clarity.
The indicator is lightweight, visually simple, and adaptable to different trading styles.
For better results, many traders combine it with a trend confirmation or support and resistance tool.
Used with varied and flexible stop loss placement, it can become a valuable addition to a professional reversal trading approach.
