Lucky Reversal Indicator Guideline
Lucky Reversal MT4 indicator to help you make money in the market by finding pullbacks. But determining the direction of a trend or a reversal of the market is among the most difficult things in trading. In fact, if it was easy, a lot of Forex traders make wealth in the market. Therefore, a lot of traders look at the reversal MT5 indicator because presents important information which helps them to protect their position or start new trades. Moreover, this Tradingview reversal indicator suits all sorts of timeframes and currency pairs.
What is a reversal indicator ?
Reversal Trading Strategy is one of the most valuable strategies used by a lot of traders in the financial market. However it is a very effective tool for Forex traders who follow the trends, and it can be used for both long-term and short-term tradings. It refers to periods when an asset price shifts direction and begins a new one. So, it can be helpful to protect traders’ positions and trigger new trades, because the reversal phenomenon can cause the beginning of new trade. Moreover, finding reversals in MetaTrader or even Tradingview is one of the most difficult things that can get in the way of traders. So that is why about 80% of Forex traders tend to lose their money in the market. A weak forex currency can lead to a happening of reversal. So you should think well before choosing the currency that you are going to trade with.
Why do reversals happen in the market ?
There are many reasons why reversals occur in the financial market:
1. Overbought of the asset: Reversals appear when an overbought happen in the market, due to a fast increase in the price of an asset, causing panic to the existing investors. Therefore, this leads some investors to start selling their position, so a reversal pattern happens.
2. Happening of major news: When major news happening in the country, such as news related to politics, economic data, etc…, can cause the appearance of reversals. For example, a reverse can occur in a company’s stock when it reports weak financial results. In addition, it can occur also when a currency pair falls due to the weak or strong economic values reported by the country.
3. Technological factors: Technological aspects can lead to a sharp deterioration of a financial asset, so the appearance of a reversal in Metatrader and Tradingview .
4. Technical reasons: the reaching of a certain technical level can lead to the happening of reversals.
How to trade with reversal indicator ?
It can be beneficial to find reversals at the right time and execute a trade, but it can be also very risky if you get the Metatrader reversal indicator wrong.
The first thing you need to do is to identify the origin of the reversal in Tradingview. The goal here is to know if the reversal will stay for a long time or it is just temporary. The second thing is to choose the appropriate tool for you, by which you will find reversals. There are different types of traders. There are those who choose to use their personal judgment to divine when a reversal is about to happen. Others choose to use technical tools like indicators. A large number of these traders use price activity trading patterns in MT4 or even MT5.
In addition, there are so many Metatrader indicators and Tradingview indicators , that you can use to identify reversals in the market. such as Moving Average (MA), Relative Strength Index, HV Support & Resistance indicator, Sushi roll indicator, etc… In this course, I will shed light on HV Support and Resistance indicator, and illustrate how identify reversals.
Reversal indicator VS HV Support and Resistance indicator
To understand the relationship between reversal indicator and support & resistance indicator you need to understand first the basics of S&R levels.
In fact, Support and Resistance are two different aspects of price. These levels represent the important levels that have an influence on the trend. Therefore, support is the zone that helps to buy near it. While resistance represents the maximum level that the price is incapable to conquer or go beyond. Keep in mind that the support level is as a floor, and the resistance level is as a ceiling. If you want to read more about this indicator click on the red phrase.
But, not all the time these levels would hold in MT5 charts. Sometimes, they can be penetrated significatively, which will lead to a break in one of these levels. In this case, their role will reverse and become the opposite. This is how the reversal indicator appears in MT4 charts, also.
In more detail, if the price drops below a support level, that level will become resistant, and if the price grows above the resistance level, it will become support. So, when the price moves and exceeds the level of support or resistance, it is thought that buying and selling pressures have shifted. Which leads to a reverse in their role.
Example of bearish reversal zone
The graph below highlights the phenomenon of reversing support to resistance. As you can see in the support zone, the price that was able to support the movement of the price goes down and penetrated the dotted line, therefore the support reverse resistance.
Example of bullish reversal zone
The chart below highlights the phenomenon of reversing resistance to support. The price in the resistance zone goes up and penetrated the dotted line, therefore the resistance reverse to support.
Download Reversal indicator for MT4
The MT4 lucky reversal indicator is an indicator used to find the reversals in the financial market with Metatrader 4. However, it can be used for supplementary confirmation of trading inputs and outputs in any forex trading system. You can divine alone when a reversal is about to happen, or you can download another MT4 indicator to help you.
So, you can see the MetaTrader 4 chart below to differentiate between the bearish reversal zone and the bullish reversal zone.
Download Reversal indicator for MT5
The lucky reversal MT5 indicator helps MetaTrader 5 platform traders’ to identify reversals in the market with Metatrader 5. And you can add any technical indicator to your chart to facilitate trading. The MT5 chart below shows a trend reversal from up to down, due to price fluctuation.
Download Reversal indicator for Tradingview
Lucky Reversal Tradingview indicator is a very useful indicator for Forex traders who look to detect reversals in the forex market. However, these tradingview traders strive especially to follow trends, protect their position against price fluctuations and start new trades. Thus this indicator will help them to achieve their goals.
This graph represents how the reversal indicator tradingview work.
The reversal indicator in is not easy to use as I said earlier, but to be adept you need work and dedication. Technical analysis is not an exact science. Some traders say that technical analysis is more of an art than a science. so you need to have artist’s tactics to succeed.
- Reversal MT5 indicator is a very effective tool for Forex traders who follow the trends and search to start new trades.
- Reversal MT4 indicator refers to periods when an asset price shifts direction and begins a new one.
- You can use Metatrader indicators ito find reversals easily or you can simply use your personal judgment.
- The reversal concept can be used for supplementary confirmation of trading inputs and outputs in any forex trading system.