Reverse Candle MT5
- Utilities
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Mahsa Farjami
I am a skilled MQL4 and MQL5 developer with 7 years of experience in creating custom indicators, expert advisors, and scripts for MetaTrader 4 and 5 platforms. I have a strong understanding of financial markets and trading strategies, and I am committed to delivering high-quality programming - Version: 1.0
- Activations: 5
General Usage:
You can use this indicator as a reliable confirmation for reversal systems and also as a powerful standalone trading system. It allows you to analyze the probability of a reversal when the price encounters each pivot or support/resistance level. It plays a role similar to divergence or trend continuation brakes. The risk-to-reward ratio of this tool is at least 1 to 2, and in the best-case scenario, with appropriate trailing, it can reach up to 1 to 10.
MT4 version
Benefits:
• Increases the success rate
• An excellent complement to a trading approach or a self-sufficient strategy
• signals for any direction (up, down, or flat )
• Multi timeframe
• without repainting
• lightweight and optimized codebase
• Phone, email , sound and visual Alerts
• can be applied to any financial assets
• For experts and beginners
How this tool works:
It takes input of magical numbers (e.g., 9, 26, 52, etc.) and performs a multi-timeframe analysis based on Ichimoku clouds. It assigns a specific score to each candle based on its reversal strength. The higher the score, the higher the probability of a reversal.
The strategy for this tool, which is applicable in the 1-minute and 5-minute timeframes, involves adding a simple Tenkan-sen (9-period moving average) to the chart, and in the 1-minute timeframe, look for a histogram with a value of 6, or in the 5-minute timeframe, look for a histogram with a value of 5. A value of 5 indicates that the conditions for a reversal have been met in the current timeframe and the four higher timeframes. For example, if you see the number 5 in the 1-minute timeframe, it means that the reversal may take one or two hourly candles to occur.
Each number corresponds to a specific timeframe. For example, whenever you see the number 1, it means that the conditions for reversal according to Ichimoku numbers have been met in the current timeframe. Similarly, if you encounter the number 2, it indicates that the conditions have been met in the current timeframe and one higher timeframe, and so on. For example, the number 5 means that the event has occurred from the current timeframe up to four higher timeframes.
What are the ideal entry points?
• This tool works more accurately when the market is more ranging in higher timeframes. The suitable timeframes for reversal strategies are 15 minutes to 1 hour, while for trend strategies, it's 1 hour and 5 minutes.
• In reversal strategies, the best way to use this tool is to combine it with support and resistance levels. If the generated numbers correspond to bottoms or tops, it works very accurately and strongly.
• If a strong trend forms in higher timeframes and the numbers repeat, it is better to use trend strategies. In such cases, you can simply open this indicator in the 1 or 5-minute timeframe and enter in the direction of the main trend after small corrections, by observing the value 1 at the end of those corrections.
Important Points:
• A crucial point to note is that until the candle below the Tenkan-sen is closed, there should be no wicks in the histo-candles caused by subsequent candles. After the close of the candle, move the stop loss above the histo-candle and close a portion of the position at a risk-to-reward ratio of 1 to 1, while trailing the remaining.
• Another important point is that the precise reversal candle may sometimes be delayed by one or two candles. So, if you see the number 5 in the 1-minute timeframe, because the number 5 is associated with the 1-hour timeframe, the reversal may take approximately one or two hourly candles to occur.
• A variation of this indicator can also be used to recognize divergence, where the current number decreases compared to the previous number.
• One final note is that this indicator is not a strategic tool but a practical one, and it can be used as a supplementary confirmation for other trend or reversal strategies.
Settings:
There is an item called "Smart Display of Histogram Count." If it is enabled, it only shows histograms with strong reversal probabilities.
If you are using this tool as a standalone strategic tool, it is better to have it activated. However, if you are using this indicator as a confirmation for your trading system, it is better to have it deactivated.
You can also determine the minimum displayable histo power for the next item.
For any questions related to the purchase, installation, and use of the indicator - pm, please.
For extended guide and bonus Reach out to me through private messages after purchasing the indicator!
