📘 Reversal Arrow Pro – User Manual
🔹 Introduction
Welcome to the official user guide for Reversal Arrow Pro, your go-to indicator for spotting high-probability market reversals. Whether you're trading Forex, stocks, indices, crypto, or commodities, this guide will help you understand how to get the most out of this powerful tool.
Reversal Arrow Pro is available for purchase on the MQL5 Market:
👉 https://www.mql5.com/en/market/product/142625
🔹 How Reversal Arrow Pro Works
Reversal Arrow Pro is a leading indicator designed to detect the early stages of high-probability market reversals. Unlike traditional tools that react after a trend has formed, this indicator aims to anticipate turning points using a proprietary formula based on advanced momentum analysis.
It analyzes the dynamic behavior of price acceleration and volatility using advanced mathematical models, revealing subtle signs of trend exhaustion and directional shift, often before the broader market reacts. This results in clear, non-repainting Buy and Sell signals plotted precisely at potential reversal zones.🔍 What is a Leading Indicator?
Most popular indicators, such as Moving Averages, MACD, and Stochastic Oscillators, are considered lagging indicators. They rely on historical data to confirm what the market has already done. While useful for confirmation, they often signal after a move has already started.
In contrast, a leading indicator attempts to predict future price movements. It looks for early clues in market dynamics that suggest a potential change in direction. Reversal Arrow Pro falls into this category, using advanced calculus-based techniques to identify momentum shifts before they are fully reflected in price action.
🔹 How to Use It Effectively
It’s important to not blindly enter a position every time a signal appears. Like any professional trading tool, Reversal Arrow Pro performs best when used within a strategy.
There are two primary setups that I recommend:
✅ Setup 1: Trend Continuation
Signals that align with the prevailing market trend. These setups often follow a brief retracement and typically offer high-probability trade opportunities.
✅ Setup 2: Volatility Exhaustion
Signals that appear after sharp price movements. These setups aim to capture potential reversals when momentum begins to fade.
One of the key advantages of Reversal Arrow Pro is that it removes the stress of constantly searching for entries. Instead of chasing the market, you simply wait for signals to appear and then evaluate their quality based on the defined setups.
🔹 Recommended Timeframes
I suggest different timeframes based on the instrument you’re trading:
-
Forex / Stocks: Use higher timeframes (e.g., H1, H4, D1) for cleaner signals.
-
Indices / Gold / Crypto: Lower timeframes (e.g., M1, M5, M15) often work well due to higher intraday volatility.
🔹 Trade Examples and Guidelines
In the sections below, you'll find annotated images with real examples of:
-
✅ Ideal signals based on Setup 1 (Trend Continuation)
-
✅ Ideal signals based on Setup 2 (Volatility Exhaustion)
-
⚠️ Signals to avoid (unclear market context or mid-range consolidation)
-
🧠 Special Cases and Unexpected Setups
Each example includes:
-
The Buy/Sell arrow
-
Suggested Stop Loss (SL) and Take Profit (TP)
-
A brief description of why the setup is valid or not
✅ Setup 1: Trend Continuation – Examples
In this section, we explore signals that align with the prevailing market trend. These setups often follow a brief retracement and typically offer high-probability trade opportunities.
Image 1 - EURUSD, H1
In Image 1, we clearly see a downtrend. A Sell signal appears on a retracement, illustrating a perfect example of Setup 1. All TP levels are reached with minimal risk.
Image 2 - US30, M1
Image 2 presents another clear Setup 1 scenario. Despite a volatility spike, conditions for a Sell (Setup 2) were not met and no signal appeared. Minutes later, a Buy signal aligned with the uptrend, making it a safe and easy trade that hit TP levels 1 and 2 quickly.
Image 3 - USDJPY, D1
Image 3 shows two key examples: the first is a situation where not to trade (see "Signals to Avoid" below), while the second is a textbook Setup 1: a Buy signal during a retracement in an uptrend. Signals may sometimes repeat, meaning conditions are still valid and late entries are acceptable.
✅ Setup 2: Volatility Exhaustion – Examples
In this section, I highlight signals that appear after sharp price movements. These setups aim to capture potential reversals when momentum begins to fade. Setup 2 signals often come in pairs (Sell → Buy or Buy → Sell), and both can present valid entry opportunities.
Image 4 - GBPUSD, H1
In Image 4, Setup 2 forms after a volatility spike, showing a Sell signal as the price returns to previous levels. All three TPs are hit within hours. A second Buy signal follows, but it hits the Stop Loss. Losing trades are part of trading and this example serves as a useful reminder.
Image 5 - EURUSD, H1
Image 5 shows a valid Setup 2. The first Buy signal results in a Stop Loss. Soon after, another Buy signal appears still valid, though slightly riskier. TP1 is reached, but before TP2 is hit, a Sell signal appears. This prompts the trader to close the Buy trade and open a new, highly successful Sell trade.
Image 6 - XAUUSD, M5
In Image 6, a Setup 2 appears, clearly supporting a Buy entry. Before reaching TP1, price encounters resistance. In this case, the trader could either manually close the position or adjust the Stop Loss closer to market price.
Image 7 - EURUSD, H1
Another Setup 2 trade where price struggles to reach TP1. Again, it's advisable to either exit manually or tighten the Stop Loss.
Image 8 - EURUSD, H1
This image shows a Sell signal after a volatility spike, another Setup 2 case. While the price eventually moved against the position, the initial post-spike volatility was enough to reach TP1, which is common in Setup 2 scenarios.
Image 9 - GBPUSD, H1
Image 9 shows a sequence of Setup 2 signals. The first Buy signal may be avoided due to the time gap after the spike (red circle): Setup 2 trades work best with immediate reactions. Even if taken, a Stop Loss here would be recovered by the following signals. The second Sell signal reaches TP1, followed by a Buy signal. The trader should close the Sell and open a Buy at this point.
⚠️ Signals to Avoid
In this section, I show signals that appear in low-quality or uncertain market conditions. These should be avoided or traded with reduced risk due to poor context or unclear direction.
Image 10 - EURUSD, H1
A clear uptrend with no signs of volatility increase. Any Sell signals in this context should be ignored.
Image 11 - EURUSD, H1
Another uptrend with no volatility spike: avoid the Sell signal.
Image 12 - GBPUSD, H1
In this downtrend, multiple Buy signals appear. While one could argue the second signal resembles Setup 2 (and it did hit TP1), this type of situation lacks clarity. When in doubt, avoid the trade or reduce position size.
Image 13 - EURUSD, H1
This image shows a successful trade in a market with no clear direction. While the result is positive, such trades carry higher risk and lower predictability. They belong in this section due to increased failure probability.
🧠 Special Cases and Unexpected Setups
In this section, we explore signals that occur under unusual or rare market conditions. While some setups here may still be valid, they require additional caution and experience.
Image 14 - EURUSD, H1
A large opening gap appears. If a signal aligns with the direction of the gap closure, a trade can be taken, even outside Setups 1 and 2. Here, TP1 and TP2 were reached within a few days.
Image 15 - EURUSD, H1
This case doesn't fall into Setup 1 or 2, but is worth noting. Price lacks direction, yet volatility is high. The key takeaway is SL/TP placement. Reversal Arrow Pro provides suggested levels, but manual adjustment matters: a nearby resistance point (red circle) above the SL level turned this trade from a loser into a winner.
Image 16 - US30, M1
The first Sell signal here doesn't fit any setup (uptrend with no increase in volatility), but knowing your market helps. This is US30 (Dow Jones), and the signal occurred just before the New York open: a moment prone to strong moves. Though riskier, it reached all TPs in minutes. A second Buy signal follows (Setup 2), but fails to hit TP1. Given the indecision visible in the red circle, a manual exit would be the smart move: this is the expected behavior in this particular market.
🎯 Recommended Use of Take Profit Levels
Reversal Arrow Pro automatically suggests three Take Profit (TP) levels, each positioned progressively farther from the entry point. These levels are designed to give you flexibility in how you manage risk and rewards depending on market conditions and your personal strategy.
Below are three recommended ways to make the best use of these TP levels:
1. 🧭 Choose the Most Contextual TP
Evaluate each trade individually and select the TP level that best aligns with the expected price movement.
In Setup 1 (Trend Continuation): consider the strength and direction of the trend. Strong trends may justify aiming for TP2 or TP3.
In Setup 2 (Volatility Exhaustion): assess the magnitude of the previous move to estimate the potential reversal range.
This is the most straightforward approach and works well when you are trading selectively.
2. 📊 Split the Position Across Multiple TPs
Open multiple positions, each targeting a different TP level.
If all three TPs seem reasonable, open three smaller trades, each closing at TP1, TP2, and TP3.
If only two seem viable, split into two positions.
If only TP1 looks realistic, stick to one conservative trade.
This strategy allows you to lock in partial profits early while keeping exposure for extended moves.
3. 🔁 Use a Trailing Stop Based on TP Levels
Open a single position and manage it dynamically using the TP levels as reference for stop movement:
Once TP1 is hit, move your Stop Loss to break-even.
Once TP2 is hit, move the Stop to TP1.
Continue adjusting as the trade progresses.
You can also combine this with classic technical analysis, such as moving stops behind swing highs/lows or dynamic support/resistance.
This approach maximizes profits on strong moves while protecting capital as the trade evolves.
No matter which method you choose, always consider the current market conditions:-
Volatility: In choppy markets, conservative targets (TP1) may be more reliable.
-
Momentum: Strong trends or impulses may justify aiming for higher TPs.
Choose the strategy that best fits your risk profile, trade setup, and market context.
🔔 Alerts and Notifications
Reversal Arrow Pro supports three types of alerts:
-
Sound Alerts: Ideal for day traders who are actively monitoring the screen. Useful especially on lower timeframes (M1–M5) to avoid missing quick signals.
-
Email Alerts: Perfect for swing traders who are away from the charts. Allows you to receive notifications even when not in front of MetaTrader.
-
Push Notifications: Can be used in both styles for mobile alerts.
Each alert includes the symbol and timeframe, the type of signal (Buy or Sell), the price, and the exact time the signal was generated.
You can enable or disable each type individually from the indicator parameters.
🧭 Heartbeat and Indicator Health
A small visual heartbeat appears on the Information Panel to confirm that the indicator is running.
This value updates every second or every few seconds: the interval may vary depending on your platform, number of open charts, and market activity.
If the heartbeat stops updating for several seconds, it's recommended to reload the indicator or the chart to restore normal functionality.
🔹 Final Notes
-
Always consider the overall market structure before acting on any signal.
-
Use proper risk management, even with high-probability setups.
🔹 Need Help?
If you have questions, feel free to contact me via the MQL5 platform. I'm here to help!
