2 Bar Reversal Indicator
The 2 Bar Reversal Indicator for MT4 identifies the two-bar price reversal chart pattern to display buy/sell signals.
Description
The 2 Bar Reversal Indicator for MetaTrader 4 is a non-repaint technical indicator developed to identify the two-bar reversal candlestick formation, which indicates an imminent trend reversal. It is essentially a price action indicator that identifies the 2-bar trend reversal pattern and then display buy/sell entries.
What is the 2-bar rule?
The 2-bar rule suggests that the price of a financial asset may likely reverse when it prints two successive large bullish and bearish candlesticks, especially around a support/resistance zone. For instance, a bullish trend may likely reverse when the price prints a large bullish candlestick which is then followed by a bearish candlestick when the price is around a resistance zone.
2 Bar Reversal Indicator BUY/Sell Signals
The above image shows the action of the 2 Bar Reversal Indicator on the EUR/USD currency pair. The indicator paints a deep sky blue arrow when it identifies a bullish 2-bar reversal pattern and an orange-red arrow when it identifies a bearish reversal 2-bar pattern.
Therefore, the deep sky blue arrow signals a buy entry, while the orange-red arrow signals a sell entry. So, you may buy or sell a financial instrument when the indicator paints a sky blue/orange-red arrow, respectively.
However, it is recommended to look out for other confluences before opening a buy/sell position because some of the indicator’s signals are not tradable. Moreover, trading along in the direction of the trend is highly recommended.
Conclusion
The 2 Bar Reversal Indicator for MT4 essentially helps you to easily identify the two-bar price reversal pattern formation for a possible buy or sell entry. Besides, the indicator is chart-friendly and is free to download.