Reversal indicators are the secret to successful trading.
One of the most important events in Forex is a trend reversal, when the price reverses its movement.
A trend reversal allows you to open a position at the onset of a new trend at the most favorable price or close an existing trade at the most favorable rate.
The key is to identify the beginning of a reversal in advance, which is easiest to do using so-called reversal indicators. They help make technical analysis on Forex significantly easier.
The best reversal indicators.
The Chaos indicator – the signal for a reversal for this instrument is the intersection of multi-colored lines; this moment indicates the beginning of a new trend.
The indicator window contains a zero line, which serves more as a reference point and as an assessment of the overall market situation.
http://time-forex.com/indikators/in-shaos
The MACD combo indicator – this reversal indicator is quite similar in appearance to the previous tool. However, it uses a different strategy to generate signals.
After adding the indicator to a currency pair, it appears in a separate window as two signal lines and a histogram.
The indicator is based on three moving averages: a fast moving average, a slow moving average, and a signal line.
http://time-forex.com/indikators/macd-combo
VininI LRMA color is one of the simplest reversal indicators, but no less effective.
After installation, a signal line is added to the chart. When the trend changes, it also changes color: red for a downtrend, green for an uptrend, and yellow for a flat.
It is recommended to filter reversal signals using an additional indicator, as this tool does not always work correctly during flat trading.
http://time-forex.com/indikators/vinini-lrma-color
Pivot Points Indicator – This indicator's main purpose is to find reversal points; it operates using support lines and a moving average.
Additionally, the resulting channel provides a general idea of the current trend in the forex market.
Basic signals: blue arrows indicate an uptrend, red arrows indicate a downtrend.
http://time-forex.com/indikators/indikator-tochek-razvorota
No indicator can guarantee a reversal, so remember to set stop-loss and take-profit when opening trades.
