The Reversal Navi Indicator For MT4
Table Of Contents:
- The Reversal Navi Indicator For MT4
- The general idea of reversal trading
- Basics of the Reversal Navi Indicator For MT4
- Trading strategy with the Reversal Navi Indicator For MT4
- Advantages of the Reversal Navi Indicator For MT4
The Reversal Navi Indicator For MT4 is a great indicator for trading reversals. While it can be traded single-handedly with rather good results, it is probably best to combine it with another indicator to filter out bad trades. If you combine each of those edges that the indicators create into one big edge this strategy will give you great results.
In this article you will first learn a bit about the general idea of reversal trading. Afterwards I will show you one strategy that uses the Reversal Navi Indicator For MT4 and a second indicator to gain a huge edge over the market. This section also contains some trade examples with said strategy. At the end I will summarize the advantages of the indicator.
The general idea of reversal trading
In general, there are two kinds of reversals that can be traded. One happens after a retracement of a stronger trend and starts the next move of this already established trend. The other one happens at the end of a trend and marks the start of a new trend in the opposite direction. Both are valid options to trade and can allow for very good results. The first method can however be seen as a little bit safer, while the second method allows for larger profits, since it happens right at the start of a new trend.
While both these methods are very good and produce great results, they share the same problematic. This problematic lies in pinpointing the correct spot where the reversal will happen. Once you can find this spot the rest of the trade becomes rather easy and straightforward. Some traders try to spot the reversal points by using technical analysis. This is however rather hard to do and very time consuming if you want to do it for more than one instrument.
The Reversal Navi Indicator For MT4 is perfectly suited for this task and also erases the time consuming aspect of the technical analysis. While it should probably not be traded on its own, it becomes very powerful once you combine it with another indicator like for example the popular MACD indicator which is included in the Metatrader4 platform.
Basics of the Reversal Navi Indicator For MT4
The Reversal Navi Indicator For MT4 uses three different features to tell you that a reversal might happen soon. The first sign is always the red or blue arrow, which means that the indicator has detected a reversal candle. These typically happen at the end of strong market moves and can tell you that a reversal is imminent.
The blue or red mark on your chart gets drawn to tell you that a reversal has happened, and price is probably about to make a strong breakout move. With this knowledge you can now look for a good entry opportunity.
For this you can use the third feature of the Reversal Navi Indicator For MT4, which is the red or blue line that the indicator draws. This shows the middle of the range, that was created after the reversal bar happened. Once price breaks this line in the direction of the arrow that was previously created, you can execute your entry.
Trading strategy with the Reversal Navi Indicator For MT4
The trading strategy that I want to show you now is based on the MACD indicator and the Reversal Navi Indicator For MT4 and combines both edges that each indicator creates into one huge edge. Now this strategy is not perfect and can still be perfected by you! The next step might be to use multiple timeframes instead of just one.
In the above image you can see multiple trade examples of this strategy. The most important rule of this strategy is to ONLY trade those signals that happen with MACD divergence! If you follow this rule you will have great profits.
Now onto the execution of the strategy. The first step is always to look for MACD divergence. As you can see this happens when movements of price and the MACD histogram differ from each other. For example, on the left side of the image you can see that price creates a lower low, while the MACD indicator is drawing a higher low. Whenever you see this happening this is your signal to look at the Reversal Navi Indicator For MT4.
Once the indicator draws the arrow you should get ready to enter the market, because once price now crosses the blue/red line in the direction of the arrow, this is your entry signal! You can see that these signals are very strong and most of the time happen before strong moves in the trade direction. Bear in mind that entries after a retracement of an established trend are a bit safer, so if you want to be extra safe, only trade those! However as you can see in the image, this strategy would have produced 5 entries and all of them ended up as a winner and those wining trades all had the potential to be very large winners!
The trade management which includes stoploss and target placement as well as potential stop movement is up to you, since this part of trading hugely depends on your trading personality and trading style. However, I would you advise to never risk more than 2% of your trading capital on a single trade. In the end trading is a marathon and not a sprint!
Advantages of the Reversal Navi Indicator For MT4
I assume that by this point the advantages of the Reversal Navi Indicator For MT4 are pretty much already clear to you so I will keep this short.
The biggest advantage of this indicator is the detection of the reversal candle. With this knowledge you can spot the start of the reversal very clear and easy. This provides you with great entries into a new trend or into an existing trend after a retracement.
Now that you know about the imminent reversal, the power of the second feature of the Reversal Navi Indicator For MT4 shows itself by showing you the exact entry point. This is obviously a great feature that can make you a lot of money while not being hard to handle.
Another big advantage of the Reversal Navi Indicator For MT4 might not be as obvious as the others. This advantage lies in its ability to harmonize with many other indicators and not only with the MACD indicator like I showed you above. These indicators might maybe be better suited for analysis. You can now always use this indicator to find the best entries based on the analysis of these other indicators.