Introduction to the Closing Price Reversal Indicator
The Closing Price Reversal Indicator is based on a very simple concept as it seeks for Price Action Closing Price Reversal Pattern. When the Closing Price Reversal indicator detects that pattern, it will give a signal in the form of a dot. The best way of trading with that gauge is pullback trading during major trends, and then a reversal in the direction of the original trend.
The Closing Price Reversal Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
The Closing Price Reversal Indicator is nothing else than just dots. They show up in two main colors: green and red. The green dots indicate buy signals and the red dots indicate selling signals. Your success rate will increase dramatically if you only buy in an uptrending market and only sell in a downtrending market.
Follow these steps for a long trade:
- The market should be in clear uptrend.
- The price should be bouncing from recent swing low.
- A green dot should appear below the market.
- Place your buy position just after above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the red dot appears above the candles.
Follow these steps for a short trade:
- The market should be in clear downtrend.
- The price should be falling from recent swing high.
- A red dot should appear above the market.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the green dot appears below the candles.
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
How to set up the Closing Price Reversal indicator in MetaTrader (MT4)?
Download the Closing Price Reversal.rar archive at the bottom of this post, unpack it, then copy and paste the Closing Price Reversal.ex4 or Closing Price Reversal.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Closing Price Reversal indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex MT4 indicators to download and try.
Download Free Forex MT4 Closing Price Reversal Indicator
To download the Closing Price Reversal indicator for Metatrader 4 (MT4) for free just click the button below: