Reversal Fractals Indicator
Fractal Reversal Indicator for your MT5 shows price reversals and also serves as a useful trading tool for trend continuation.
Description
Looking at the charts, you might assume that the market moves sporadically and of its own accord. But upon closer inspection, you may notice some patterns in the graphs. Fractals are one such pattern. The fractal pattern looks more like a hill made up of candlesticks. A bearish fractal is formed when a candle with the highest high appears between two candles with a lower high. A bullish fractal is when the candle with the lowest low appears between two higher lows on the chart. The Reversal Fractals Indicator shows the formation of price reversals on the chart using arrows.
An arrow at the top of the price means that a downward reversal has occurred. Conversely, an arrow below the price is a signal of a potential upward reversal.
The disadvantage of this Reversal Fractals Indicator is that it gives a lot of signals. After all, the more signals, the higher the risk of false signals. However, as you will soon see, there are ways to take advantage of these many signals in your trading.
How to Use the Reversal Fractals Indicator in MT5
Any indicator is only as good as the trader who uses it. This is why it is best that you understand how to use this fractal reversal indicator on your MT5.
1. Continuation of the trend
Although the name suggests that it is a reversal trading indicator, it is best used as a trend continuation trading tool. This may seem counterintuitive since fractals are better suited for trend reversal trading than trend trading. But this reversal fractals indicator shows quite promising results in trend continuation trading.
The trick is to look for established underlying trends in the chart. Then use the fractal indicator to take trend continuation trades in the direction of the main trend. You use the indicator to catch pullbacks and trade the continuation of the trend. You can rely on other technical indicator tools to identify major trends in the chart. And thanks to the variety of trading signals it provides, you are unlikely to miss a single pullback.
2. Trend reversal
The trend reversal trading method is another way to use the Fractal Reversal Indicator on your MT5. You wait for a reversal signal to appear and make a trade.
Conclusion
The Reversal Fractals Indicator scans fractals and then presents key market reversals. By analyzing the arrows, traders can open their long or short positions. You can also download the indicator for free on our website.