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.
