We would like to show you Closing Price Reversal Indicator. The indicator is based on very simple concept as it seeks for Price Action Closing Price Reversal pattern. To use this tool you don’t need any special knowledge about forex trading. Even though you don’t need basic knowledge, it is recommended to combinethis indicator with other indicators for better results and / or confirmation. The closing price reversal indicator gives signals in the form of dots. They are clear enough to make trading decisions on its suggestions. To use it optimally, you should be familiar with the concept of the trend trading – in most cases with combination of support and resistance levels, signals of other indicators.
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.
Rules for Long Entries:
- The market should be in 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.
Rules for Short Entries:
- The market should be down trending.
- 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.