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Two forex moving averages make up the trend reversal forex indicator in MT4, which alerts traders to a shift in price trend. So that we can only trade in the direction of the main trend, it shows whether the trend on the most recent chart timeframe is bullish or bearish.
This signal forex indicator will open in a separate window on the forex MetaTrader 4 platform.
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How to identify trend reversal?
The mt4 trend reversal forex indicator is made up of two moving averages
- moving average quickly
- moving average slowly
While the slow-moving average (MA) responds more slowly to market fluctuations, the fast-moving average (MA) does it more quickly.
The usage of these two moving averages is justified since a fast moving average will frequently produce erroneous signals. A slow-moving average, on the other hand, will take longer but won’t produce any false indications.
In this indication, a fast-moving average (FMA) creates a signal for a price trend reversal, and a slow-moving average (SMA) verifies the trend reversal’s direction.
How should I trade utilizing the forex trend reversal indicator for MT4?
Buy
When the fast moving average crosses the slow moving average from the bottom side, a buy signal is triggered.
Sell
When the fast-moving average crosses the slow-moving average from the top side, a sell signal is triggered.
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 | No Minimum Deposit ECN Acount No Commission | |
 | Min Deposit of 20$ |
The Bottom Line
The finest MT4 forex indicator for spotting trends is the trend reversal indicator. The slope of MAs will decline and move horizontally during the range forex market condition.
Due to the moving average and price’s sideways movement, this forex indicator will not perform well while the market is in a range.
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