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The reversal forex indication is the indicator to look for when a trend changes direction.
Many, but not all, indicators can accurately identify a change in the trend on the chart. However, this one is a reliable and accurate forex indicator for spotting a direction change.
Working of reversal indicator
Using this forex indicator, you can observe yellow dots on the charts surrounded by blue and red circles. When the chart trend shifts from bullish to bearish, this indicator inserts a yellow dot with a red circle around it at the top of the chart candle.
Similar to this, where the trend begins out bullish on a chart candle, the forex indication is a yellow dot with a blue circle surrounding it.
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Settings of reversal indicator
By selecting a slow or fast mode, you can alter the frequency of the entry signal for the reversal forex indicator. You can also vary the color circle’s form around the yellow dot.
Trading strategy for reversal indicator
Buy entry
When the indicator displays a yellow color dot with a blue circle surrounding it, you have a buy entry indication. Your stop loss(SL) might be placed a few pip(s) below the candle where the reversal took place.
Sell entry
When the indicator displays a yellow hue dot with a red circle surrounding it, you get a sell indication. A few pip above the candle where the reversal happened is where you can place your stop loss (SL).
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Conclusion
Trading just on reversal indicators is seen as extremely dangerous. Because it can operate as a confluence with other reversal signs, we always advise using it in conjunction with them. Utilizing that combination will increase your chances of receiving a winning signal and save tension and losses. Aroon Indicator is one such excellent indicator.
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