The Lucky Reversal Indicator is a forex and stock trend reversal indicator for MT4. It automatically scans past market data, identifies key price swing zone, and outlines accurate support/resistance levels.
Technical traders use the Lucky Reversal support/resistance line to assess potential trend reversal zones. Also, it prints arrow signals whenever it detects a solid buy-sell signal near the S/R levels.
It plots blue arrows below the support when the price reverses for a possible uptrend movement. Conversely, the red arrow above the support indicates that the price will likely begin a bearish rally.
Buy Signal Generation with Lucky Reversal Indicator
We’ll go long when the price rejects the break of the support level and rebounds for a bullish move. The support lines are usually plotted around the bottom of the chart.
The indicator plots the support level when the price fails to break a significant area while on a bearish move. It means the market is no longer interested in a further downside movement. Instead, the price will remain under the possibility of activating a bullish trend move.
Open a buy order right after the chart prints a solid bullish reversal pattern near the support zone. Please SL below the support. Exit long once the price fails to exceed the upcoming resistance.
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Sell Signal Generation with Lucky Reversal Indicator
Look for sell signals when the price denies the current resistance reverses downwards from the Lucky Reversal resistance level.
In the above GBPUSD H4 chart, the price has failed to exceed the resistance level multiple times. It proves the price has lost its bullish momentum and is ready to switch to a bearish movement.
Enter short once the price starts declining further from the resistance area. A bearish pin bar or black cloud engulfing pattern at the resistance is an ideal confirmation of opening sell orders.