Lucky Reversal Indicator (Free Download)
Lucky Reversal Indicator is a helpful tool for MetaTrader 4 (MT4) platform that helps traders spot when market trends are changing direction. It shows clear signals with blue and red arrows on your trading chart, making it easier to see potential trading opportunities. But it is designed to confirm market trends rather than predict them.
The Lucky Reversal indicator uses 4 main signals:
- Blue arrows show the start of an uptrend (prices going up)
- Red arrows show the start of a downtrend (prices going down)
- White squares appear to warn about possible upcoming reversals
- Wavy horizontal lines follow the arrows to show the trend’s direction
There are two main strategies to trade with this indicator:
Method 1: Direct Signal Trading
- Watch for the white square to appear – this warns you about a possible reversal
- Wait for the white square to change into either a blue or red arrow
- Enter your trade when the arrow appears:
- Blue arrow = Buy trade
- Red arrow = Sell trade
- Use the wavy lines to help set your stop loss, as prices rarely cross back over them
Method 2: Combined with Moving Averages
This is a more advanced way to use the indicator:
- Add two Moving Averages to your chart:
- One regular (fast) MA
- One 20-period (slow) MA
- Wait for the Lucky Reversal arrow signal
- For buying:
- Look for a blue arrow
- Wait for the fast MA to cross above the slow MA
- Then enter your buy trade
- For selling:
- Look for a red arrow
- Wait for the fast MA to cross below the slow MA
- Then enter your sell trade
Lagging Nature
Lucky Reversal Indicator is a lagging tool, meaning its signals appear after a reversal has been established. This ensures that traders avoid entering trades prematurely, as the indicator focuses on confirmation rather than prediction. While this means missing the early part of a trend, it greatly reduces the risk of false signals.
Key Features
- Trend Confirmation: Reduces the risk of false entries by confirming trends
- Available Currency Pairs: Works well with all forex pairs, but especially effective with GBPJPY and AUDJPY
- Lagging=Reliable Signals: Since it waits to confirm reversals, you get fewer false signals
- Best Timeframes:
- Higher timeframes (H1, H4, D1) for more reliable signals
- M15 for shorter-term trading
Key Advantages for Traders
- Non-repainting Indicator: Indicator provides consistent and reliable signals only
- Simple to Understand: The arrows and lines are easy to read, making it perfect for both new and experienced traders
- Flexible Use: Pairs well with other tools like Moving Averages or RSI
- Clear Stop Loss Guide: The wavy lines can help you place stop losses, as prices rarely cross back over them
- Risk Management: The indicator helps you make safer trades by confirming reversals before signaling
The download package of the product includes:
- Indicators: lucky-reversal_indicator.ex4
- Installation Guide from forex-hacked.com
Conclusion
I think Lucky Reversal Indicator is a valuable tool if you are looking for clear, reliable signals for trend reversals. Yes, it won’t catch the very beginning of a reversal, it makes up for this by giving more reliable signals that help you trade with the new trend. Whether you’re new to trading or have years of experience, this indicator can help make your trading decisions easier and more confident.
Remember: No indicator is perfect, so always use good risk management and consider combining it with other trading tools for the best results.
Contact me: trent@trentbaxter.com
