Blaster Reversal Indicator - clever algorithm with PA & Market Timing strategies
For successful forex trading, it is important to be able to correctly find the end and start points of the trend, as well as to accurately determine the future direction of the price. For these purposes, traders use a variety of tools, ranging from classic support / resistance levels to more complex and paid indicators. One of these algorithms is Blaster Reversal Indicator. This tool was developed specifically to identify trend reversal points. The blaster instrument was named due to the fact that its signals almost always hit the target.
Characteristics of the Blaster Reversal Indicator
- Platform: Metatrader4
- Currency pairs: Any currency pairs, recommended Major
- Trading Time: Any trading sessions
- Time Frame: Any, recommended H1, H4 and D1
- Recommended broker: RoboForex, InstaForex, Forex4you
According to the developers, the indicator has a clever algorithm that combines Price Action and Market Timing strategies. The indicator does not repaint and does not lag. Blaster Reversal gives signals in the form of directional arrows "up" and "down". In addition to pointers, the instrument displays blue and red boxes on the chart, which show the range of price movement for a certain period of time.
The borders of such boxes can be used as local support and resistance levels:
- A blue box appears when a buy signal is received
- A red box is formed when a sell signal appears
The algorithm gives a signal at the moment of a trend change. If the downtrend changes to an uptrend, a blue arrow and a blue box will appear on the chart. When a bullish trend changes to a bearish one, the chart will show a red box combined with a red arrow.
The indicator is based on the Relative Strength Index (RSI) algorithm, so the main input parameter that affects the quality of signals will be the “Period” item. It is responsible for the number of bars that will be analyzed when looking for signals. The higher the period value, the less frequent the signals will be. At the same time, their quality will noticeably increase, since the indicator will take into account more data. With a small period, the number of signals increases, but their quality becomes worse.
You can also make the necessary adjustments to the visual design of the signals, activate / deactivate the alert function and the pop-up alert window. After setting up the indicator, you can start trading.
We recommend making the first 20-30 trades on a demo account in order to get used to working with this indicator and to better understand its trading algorithm.
The easiest way to trade is to make deals when a signal box and an arrow appear. The market is entered only by the direction of the signal. It is recommended to ignore counter-trend trades.
When trading Laser Reversal, it is important to set the protective Stop Loss correctly.
- When making a buy deal, the order is placed outside the lower border of the signal box
- When making a sell deal, the order should be moved outside the upper edge of the signal box
Take Profit should be at least 2 times higher than Stop Loss. If the market volatility is low and the Take Profit is too small, then it is better to skip the deal.
When trading with box signals, it often happens that the price breaks the Stop Loss, and then reverses and continues to move towards the trade. It is very simple to protect yourself from such an unpleasant incident - make a deal only at the moment of the breakdown of the extreme point of the second signal box on a price pullback. In this case, the protective Stop Loss can be taken out a little further by setting it 3-5 points below / above the High or Low values, depending on the type of deal.
In addition, Blaster Reversal can be used to quickly plot local support and resistance lines. The upper and lower borders of the indicator boxes will play the role of levels. If we consider the signals of the algorithm against the background of the global trend, then its boxes can be used as an alternative to the supply and demand zones.
The principle of trading according to this scheme is no different from ordinary trading by levels:
- If the price bounced off the upper border of the box and turned down, then open a position for a fall
- If the price bounced off the lower border of the box and moved towards the bulls, then open an up trade
To increase the number of profitable trades and filter out false signals, analyze the chart of an older timeframe. For example, when trading the M5, always refer to the 15 minute chart. If in the older period the trend is confidently moving down, and in the younger period there is a signal for an increase, then it is better to ignore such an entry into the market. If the general trend on both charts coincides and the price moves in one direction, then you can safely open a deal.
In the archive Blaster_Reversal_Indicator.rar (34.0 Kb):
Free Download Blaster Reversal Indicator