Closing Price Reversal Indicator
Platform: MT4 Type: Reversal Last update: September 28, 2024The Closing Price Reversal Indicator for MetaTrader 4 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.
How to apply the closing price reversal indicator in trading?
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.
Buy Signal
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.
Sell Signal
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.
