Lucky Reversal MT4 Forex Indicator
Forex market trend reversals happen all the time. As long as there are market trends, there will always be chart reversals. Many trend and trend reversal forex trading tools and strategies depend on this concept. It’s now only a matter of how a forex trader can use the right tools to catch the reversals and trade the trends. The Lucky reversal forex indicator is among the many reversal trading indicators. But it has some features that make it different from other forex market trend reversal indicators.
What Is The Lucky Reversal Forex Indicator
The Lucky reversal indicator does what its name implies: it tells when the trend has turned from an uptrend to a downtrend or from a downtrend to an uptrend. It gives its signals in blue and red arrows, followed by wavy horizontal lines. The blue arrow marks the beginning of an uptrend, while the red arrow signifies a market reversal to the downtrend.
Another feature of the Lucky reversal indicator must be more obvious at first glance. This feature is the white square that appears when the indicator suggests a temporary or potential reversal.
The major flaw of the Lucky indicator
The Lucky reversal indicator is unlike many trend reversal indicators out there. First, it is a lagging indicator, so a trader can hardly trade reversal breakouts with it.
Many traders have been frustrated by using the indicator to catch the beginning of reversals, and you can’t blame them for trying. However, if you backtest the indicator, you will find that the bullish and bearish signals are right at the lowest or topmost pivot points of major trend reversals. See an example in the image below. You’ll notice that the price seems to reverse as soon as the arrow appears.
On testing the indicator on a live market, however, you will find out that the bullish or bearish signals only appear after the market has completed a reversal. Furthermore, the reversal arrow appears on the chart only when the reversal has been confirmed. This shows that the Lucky reversal indicator lags.
Combining the Indicator With The Moving Average Indicator
Pull up the Lucky indicator and two moving averages on your chart. Leave one moving average as it is, but change the period of the other moving average to 20. Please change the color to tell it apart from the other moving average. The default moving average will be our fast-moving average, while the 20 MA is our slow MA.
Next, wait for the Lucky indicator to give you a buy or sell signal. Remember that this indicator lags, so you are not looking to trade the buy or sell signal of the indicator. Instead, we want to trade entry opportunities toward the trend that the Lucky reversal indicator confirms. This is why we have those two moving averages.
When our trend reversal indicator gives an uptrend signal, you only buy when the fast MA crosses over the slow-moving average to the upside. Only sell once the Lucky reversal indicator changes from blue to red arrows. And when our reversal indicator gives a downtrend signal, you only sell when the fast MA indicator crosses the slow-moving indicator to the downside.
Lucky Reversal MT4 Forex Indicator download link