Introduction to the Reversal Navi Indicator
Strong market momentum can sometimes be followed by a strong opposite reaction. What comes up should come down. This is the concept that the Reversal Navi Indicator is based on. However, this indicator is versatile enough to be used for different purposes aside from trading against the momentum.
What is the Reversal Navi Indicator?
The Reversal Navi Indicator is a momentum indicator which follows price action movements to identify the most recent direction of the momentum. It identifies reversals that go against the momentum, as well as the signals that indicate the crossover of momentum and price.
This indicator plots arrows to indicate a reversal signal that goes against the direction of the momentum. It also plots dots to indicate reversals occurring at the midpoint of the range. The line represents the midpoint of the range based on the reversal signals.
How the Reversal Navi Indicator Works?
The Reversal Navi Indicator uses a complex algorithm which identifies reversal signals that go against the direction of the momentum. It then plots a line which is based on the reversal signals indicated by the arrow and the range of price action. Red lines indicate that the last momentum direction was bullish, while blue lines indicate that the last momentum direction was bearish. The dots indicate the candles wherein price action has touched the line after a reversal arrow.
How to use the Reversal Navi Indicator for MT4
The Reversal Navi Indicator has a couple of options within its indicator settings which traders can use to adjust the sensitivity of the indicator.
The “High Low Period” variable refers to the number of bars the indicator would base its price range on and effectively adjusts the length of the line the indicator plots.
The “Standby Bars” is another variable which traders can also use to tweak the indicator’s sensitivity.
This indicator was mainly intended to detect potential reversals that go against the current momentum. These are usually initiated by the reversal arrows. However, trading against the momentum is often a low probability trade proposition.
Instead of trading against the momentum, traders can observe the how price action reacts at the point where the indicator plots a dot signal then trade in the direction of the momentum when appropriate.
Buy Trade Setup
When to Enter?
The line should be red indicating a bullish momentum. Open a buy order on the confluence of the red dot signal and a bullish reversal pattern or an indecision candle. Set the stop loss on the support below the entry candle.
When to Exit?
Close the trade as soon as a red arrow pointing down appears.
Sell Trade Setup
When to Enter?
The line should be blue indicating a bearish momentum. Open a sell order on the confluence of the blue dot signal and a bearish reversal pattern or an indecision candle. Set the stop loss on the resistance above the entry candle.
When to Exit?
Close the trade as soon as a blue arrow pointing up appears.
Conclusion
This indicator may produce confusing and conflicting reversal signals at times. This is because the reversal signals are typically generated against the direction of the momentum. However, users can observe how price action moves and use this indicator simply as a basis for identifying momentum direction and viable entry points.
MT4 Indicators – Download Instructions
Reversal Navi Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.
Reversal Navi Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
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How to install Reversal Navi Indicator for MT4.mq4?
- Download Reversal Navi Indicator for MT4.mq4
- Copy Reversal Navi Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 4 Client
- Select Chart and Timeframe where you want to test your MT4 indicators
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
- Right click on Reversal Navi Indicator for MT4.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator Reversal Navi Indicator for MT4.mq4 is available on your Chart
How to remove Reversal Navi Indicator for MT4.mq4 from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Reversal Navi Indicator for MT4 (Free Download)
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