Reversal Fractals Indicator
MT4Also Available for MT5This indicator shows price reversals but also serves as a useful trend continuation trading tool. Also, learn how to use this indicator in your forex trading
Description
A glance at the charts and you might assume that the market moves sporadically and of its own free will. But on a closer look, you may notice some patterns in the charts. The fractals are one of such patterns. The fractal pattern looks more like a hill made from candlesticks. A bearish fractal forms when a highest high candlestick appears in between two lower high candlesticks. While the bullish fractal is when a lowest low candlestick appears in between two higher lows on the chart.
The Reversal Fractals Indicator
The reversal fractals indicator points out the formation of price reversals on the chart with the use of arrows. An arrow on the top of the price means a reversal has occurred to the downside. Conversely, an arrow below the price is a signal of a potential reversal upside. What seems like the disadvantage of this reversal fractals indicator is that it gives a lot of signals. After all, with more signals are an increased risk of false signals. However, there are ways to take advantage of these many signals in your trading, as you’ll soon see.
How to Use the Reversal Fractals Indicator in your MT4
Any indicator is just as good as the trader using it. That is why it is best that you understand how to use this reversal fractals indicator on your MT4.
1. Trend Continuation
Although the name suggests it is a reversal trading indicator, its best use is as a trend continuation trading tool. This might sound counter-intuitive since fractals are more for trend reversal trading than trend trading. But this reversal fractals indicator shows enough promise in trend continuation trading. The trick is to locate already established major trends on the chart. Then use the fractals indicator to make trend continuation trades in the direction of the major trend. You use the indicator to catch pullbacks and trade their trend continuation. You may rely on other technical indicator tools to determine the major trends on the chart. And thanks to the many trade signals it gives, you’ll hardly miss any pullback. 
2. Trend Reversal
The trend reversal trading method is another way to use the reversal fractals indicator on your MT4. You wait for a reversal signal to appear, and you make the trade.
Who Can Use The Fractals Indicator
The fractals indicator is best for all forex traders. However, beginner forex traders may find the indicator to be more useful, as it helps them to determine potential price reversals and also trend continuations on major trends.
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