Features of the Indicator
The MetaTrader 4 2 Bar Reversal Indicator is a non-repaint technical indicator that spots the two-bar reversal candlestick formation. The pattern signals a trend reversal. It is a price action indicator that identifies the 2-bar trend reversal pattern and displays buy/sell entries based on that pattern.
The indicator works based on the 2-bar rule. The rule says the price may reverse when it forms two consecutive large bullish and bearish candlesticks, especially near a support/resistance zone. A bullish trend, for example, is likely to reverse when the price makes a strong bullish candlestick, followed by a strong bearish candlestick while the price is near a resistance zone.
How the Indicator Can Benefit You
You can use the indicator to enter trades. Here’s how. When the indicator detects a bullish 2-bar reversal pattern, it draws a deep sky-blue arrow; when it detects a bearish 2-bar reversal pattern, it draws an orange-red arrow.
As a result, the deep sky blue arrow indicates a buy entry, whereas the orange-red arrow indicates a sell entry. You may buy or sell a trading instrument when the indicator draws a sky blue/orange-red arrow.
However, because some of the indicator’s signals might sometimes be false, it is advisable to check for additional confluences before taking a buy/sell position. Furthermore, you will increase your chance of success if you trade in the direction of the trend.
Indicator Settings Description
The indicator does not have inputs you can change to tailor your strategy. You can, however, change the color, line style, and width of the indicator arrows.
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