- 1 Appearance and Main Features of the Reversal Master
- 2 Reversal Master Settings Description
- 3 How to Take Profit with the Reversal Master Indicator
- 4 Additional Examples of Taking Profit at Strong Levels with the Reversal Master Indicator
- 5 How to Use the Reversal Master Indicator Signals in Custom Expert Advisors
The Reversal Master is an indicator used to determine the current trend and potential entry points. The indicator gives clear signals, and has a huge trading potential. And today we will consider in detail examples of using the Reversal Master indicator.
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Current Version: v2.8
Description: The Reversal Master is an indicator created to identify the current price direction and reversal points. It serves as a valuable tool for traders seeking improved market insight. The indicator can be utilized as an add-on to existing trading systems, as a standalone tool, or for the development of customized trading systems and EA’s.
To determine reversal points, the Reversal Master indicator conducts a comprehensive analysis of multiple conditions. This inclusive analysis provides a more precise depiction of the market situation. The indicator assesses Price Action patterns, trading instrument volume, average range of movement, as well as overbought and oversold levels.
Currency Pairs: Any
Time Frame: Any, but better results for M5 and higher
The Reversal Master indicator will be useful for those who want to better see through the current market situation. The indicator can be used as an addition to already existing trading systems, or as an independent tool for work, as well as for developing your own trading systems and EA’s.
The task of the indicator is to find the entry point and calculate the maximum possible potential profit for the position. Thus for the current position, the value of the maximum possible profit can change towards increase in the process of price movement. For positions, which have already been closed, the maximum possible profit value does not change or repaint. How to take profits with the indicator we will talk a little later, but for now, let see how the indicator looks like.
Appearance and Main Features of the Reversal Master
Maybe you thought the previous example was a bit overloaded with information, so look at the next example for XAU/USD (Gold) with no additional explanations, and you will see the indicator signals in their pure form:
Reversal Master Features
- Automatic Detection of Trend Reversal Points
- Suitable for Different Trading Instruments
- Automatic Display of the Potential Profit for Each Position (Show Statistics Mode)
- Works on Any Timeframe (Better Results for M5 and Higher)
- The Indicator Signals Can be Used for Scalping and Intraday Strategies, as well as for Long-Term Trading
- Suitable for Beginners and Experienced Traders
- The Indicator has Built-in Filters to Filter Out Market Noise
- 100% Non-Repainting Indicator (for Closed Positions)
- The Indicator Can be Used for Developing Expert Advisors (EA’s)
Reversal Master Settings Description
>>>>>>> MAIN SETTINGS <<<<<<<
Select Indicator Mode – indicator operation mode:
- Work Mode-1 – the previous version (v1.5 and lower) operating mode (with a different algorithm for calculating trend reversal points)
- Work Mode-2 – the new version (v2.0 and higher) operating mode
Sensitivity (for Mode-1) – sensitivity setting for Mode-1
Show Statistic (for Mode-2) – displaying potential profit for each position for Mode-2
Bars for Count – the number of bars to calculate. If 0, the calculation is made for the entire available history. For weak computers, I recommend limiting this parameter to 5000 bars or less
>>>>>>> ALERT SETTINGS <<<<<<<
Sound Alert – activating the Sound Alert.
Sound File Name – sound file name in WAV format that will be played when a Sound Alert is activated. Must be located in the folder /Terminal/Sounds…
PopUp Alert – activating a Pop-Up message when a signal appears.
Push Notifications – activating Push notifications when a signal appears.
Email Notification – sending an Email message when a signal appears.
>>>>>>> COLOR SETTINGS <<<<<<<
Select Color Theme – selecting the color scheme of the indicator. (Off / Light Theme / Dark Theme)
Custom Colors Settings (if Select Color Theme = Off) – Profit Line Color / Loss Line Color / Profit Line Background Color / Loss Line Background Color
>>>>>>> ARROW SETTINGS <<<<<<<
Draw Arrow – enable the signal arrows indication on the main chart (Off / Arrow Type = 1 / Arrow Type = 2 / Arrow Type = 3)
Arrow Size – Arrow Size = 1 / Arrow Size = 2 / Arrow Size = 3 / Arrow Size = 4
Buy Arrow Color, Sell Arrow Color – Arrows Colors
How to Take Profit with the Reversal Master Indicator
Well, if there are no questions regarding position entries, we rely on arrow signals. But what about taking profits? What methods and strategies work with the indicator?
There can be multiple options as you can use any tools that are convenient for you in trading or that you are accustomed to. But what if you don’t have such tools yet? There are two relatively simple methods for managing open positions.
So, the first one is trailing profit based on fractals.
This method works well in trending markets, especially if you increase the fractal leverage slightly higher than the default value.
The drawback of this method is that it works well in trending markets but is less effective in a ranging (flat) market.
By the way, this method can be a good addition to the next method of closing profitable positions.
Therefore, if you do not use your own method of taking profit, the most optimal and accurate approach would be to close the profit at strong levels from higher timeframes.
Using Strong Levels from Higher Timeframes to Take Profit with Reversal Master
This is the primary method of taking profit that we use when working with the Reversal Master indicator. It has almost no drawbacks, and it does not require constant monitoring. The levels on higher timeframes do not change as frequently, allowing you to set the levels and essentially go about your business, only periodically monitoring price movement or reacting to new indicator signals. This is especially relevant for higher timeframes. So let’s take a closer look at this method of taking profit and ensure that it aligns perfectly with the strategies embedded in the Reversal Master indicator.
Let’s consider the following example for EURUSD M5. We open our positions based on the indicator signals, and at the time of entry, we don’t know the price target. Here’s what we do: we switch to a higher time frame (H1 or H4) and identify well-visible strong levels. These levels are those at which the price has bounced at least 3 times in the past.
In our example, these levels are 1.06370 and 1.06950. These are the nearest strong levels for our current market situation. When the price breaks through these levels, the balance of power may shift, but for now, these are the targets that interest us. In other words, these levels are our potential profit targets for our positions.
Let’s take a look at how it looks on the H4 timeframe.
As you can see, it’s quite simple:
1) We open a position based on the indicator signal
2) We switch to a higher timeframe and identify strong levels for ourselves to know in advance what level of profit we can expect in the near future
3) The price moves, and the indicator shows us the potential profit at the current moment
Please note that the price doesn’t always touch the levels pip by pip, otherwise, it would be too simple and easily automated. The price can create false breakouts, false penetrations, but in any case, on the higher timeframe, when price fluctuations have less noise, these levels can be easily identified visually.
Combining Strong Levels and Trailing Stops Using Fractals
And here’s an example of how we can combine strong levels and trailing stops using the fractal indicator.
During trading, we simply adjust our stop levels below or above the fractals, which allows us to protect our positions and move them to breakeven, and then trail the profit. This trailing technique is particularly useful if our position is in the market before important news, when the price can behave unpredictably and contrary to technical analysis. In such a situation, it will be much more reassuring if our position is at breakeven or even in profit.
Additional Examples of Taking Profit at Strong Levels with the Reversal Master Indicator
Let’s consider a few more examples of profit taking at strong levels with the Reversal Master indicator.
Here’s an example situation on the Bitcoin M5 chart. We received a Sell signal and then switched to the H1 chart where we identified a well-defined strong support level of 26537.30.
Let’s switch to H1 timeframe and see what we based our identification of the strong support level on:
After receiving a Sell signal from the Reversal Master indicator, we switch to the H1 timeframe and easily identify the nearest strong support level at 1837.95
Switch to the H1 timeframe:
But what if we want to trade on the H1 timeframe? No problem – we will use the H1 timeframe as our working timeframe, and consider the H4 timeframe and higher as our higher timeframe. Let’s consider two signals simultaneously – Buy and Sell:
After switching to the higher timeframe H4, we identify a strong target level of 1.0637 for our Sell signal and a strong level of 1.0763 for the Buy signal:
Therefore, you can use the Reversal Master indicator on any timeframe that suits your trading style. However, it is advisable to be more cautious with the M1 timeframe, as it experiences a significant amount of minor price fluctuations (market noise), making trading more challenging. We would recommend using the Reversal Master indicator starting from the M5 timeframe and higher.
How to Use the Reversal Master Indicator Signals in Custom Expert Advisors
Let’s now explore how we can use the signals of the Reversal Master indicator in Custom Expert Advisors (EAs) to create automated or semi-automated trading systems.
The Reversal Master indicator uses two external buffers to plot arrows for Buy and Sell signals.
Buffer is used for Buy signals, while Buffer is used for Sell signals.
Here’s an example code for calling the indicator from an Expert Advisor:
int Up = iCustom(_Symbol,0,"ReversalMaster",0,1);
int Dn = iCustom(_Symbol,0,"ReversalMaster",1,1);
Buffer 0 – for Buy Signals
(0) – No Signal
(-1) – Buy Signal
Buffer 1 – for Sell Signals
(0) – No Signal
(1) – Sell Signal
That’s all for today. Keep an eye on the new articles and the release of new versions of the indicator with new features and additional capabilities.
Some Final Notes:
Built-in statistics allow us to view the potential profit for each historical position by showing the difference between the entry point and the price extreme formed prior to the appearance of the opposite signal.
Don’t forget to upload historical data for the analyzed trading instrument!