Envelopes Reversal Signal Metatrader 4 Forex Indicator
The Envelopes Reversal Signal forex Mt4 indicator draws buy and sell arrow reversal signals on the trading chart.
Signals are based on the Envelopes technical indicator.
A green red arrow represents a buy signal while a red arrow a sell signal.
Play a little bit around with the Envelopes period setting to suit your needs.
I prefer to set the period to at least 25 or higher.
This tends to give less false buy and sell signals.
It’s recommended to use the reversal indicator alongside a trend following indicator.
Only consider to trade the signal arrows in the direction of the overall trend and avoid trading against the trend.
The EUR/USD 4-Hour chart below displays the Envelopes Reversal Signal Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Envelopes Reversal Signal MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Go long when the Envelopes Reversal indicator draws a green arrow on the MT4 chart. Confirm the buy trade with other technical indicators or analysis tools. Place a protective stop-loss below the previous swing low price.
Sell Signal: Go short when the Envelopes Reversal indicator draws a red arrow on the MT4 chart. Confirm the sell trade with other technical indicators or analysis tools. Place a protective stop-loss above the previous swing high price.
Trade Exit : Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Envelopes period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the envelope-reverse.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)