If you’ve been trading for a while, you know how frustrating it is to miss a market reversal or get trapped chasing the price right before it turns. Accurately identifying tops and bottoms is a skill that can dramatically improve your trading results.
The Three Bar Reversal Pattern Indicator for MT4 is designed to solve exactly that problem. This Forex tool automatically scans your charts to identify bullish and bearish three-bar reversal patterns, highlighting them for you. To improve accuracy, it also integrates filters like support/resistance levels and trend alignment to help eliminate false signals. Whether you’re scalping, day trading, or swing trading, this indicator helps you catch short-term market turns with greater confidence.
3 Bar Reversal Pattern Indicator Installation
1. Unzip the file you’ve downloaded.
2. Find the file that is called “ThreeBarReversalPattern.ex4″ and copy it.
3. Open your MT4.
4. Go to “File – Open Data Folder – MQL4”.
5. Paste the file into the “Indicators” folder in MQL4.
6. Restart your MT4.
After the installation, your trading chart will look like this:
Indicator Description
The three-bar reversal is a classic candlestick formation that you can use to identify potential reversal points in the market. The indicator automatically finds these setups for you.
- Bullish Three Bar Reversal: This pattern appears at the end of a downtrend. It consists of three candles: the first is bearish; the second makes a lower low but closes higher than the first candle’s close; and the third confirms the reversal, often pushing the price higher.
- Bearish Three Bar Reversal: This pattern appears at the end of an uptrend. The first candle is bullish; the second makes a higher high but closes lower than the first candle’s close; and the third candle confirms bearish momentum, signaling a potential top.
Here’s why it’s a handy tool for your trading arsenal:
- Clear Visual Signals: The indicator provides easy-to-read signals with colored bars and support/resistance markers.
- Built-in Filters: It includes filters for trend and support/resistance to help weed out low-probability signals.
- Works on All Timeframes: It is effective for scalping, day trading, and swing trading styles.
- Customizable Visuals: You can adjust the settings so your chart stays clean and easy to read.
- Great for Entry Timing: It is an excellent tool for timing entries after pullbacks or for fading trends that appear exhausted.
Basic Trading Signals
Buy Signal (Bullish Setup):
- Look for a blue three-bar reversal pattern that forms near a support zone.
- Enter a buy trade once the pattern is confirmed.
Sell Signal (Bearish Setup):
- Watch for a red three-bar reversal pattern forming near a resistance zone.
- Enter a sell trade after the pattern is confirmed.
Use a trend filter like a moving average indicator to ensure you are only trading reversals in the direction of the bigger trend. This helps you avoid fighting strong market moves and minimizes false signals.
My Conclusion on the 3 Bar Reversal Pattern Indicator
The Three Bar Reversal Pattern Indicator for MT4 is a must-have if you want to sharpen your reversal game. By automatically detecting these classic formations and filtering them with trend and support/resistance zones, it saves time and removes a lot of the guesswork from your trading.
Whether you use it as a standalone system or combine it with other strategies like Smart Money Concepts, volume analysis, or trend-following, this indicator brings clarity to reversal trading.
P.S. Have problems with installation? Email me at olivermurphy@altraforex.com or support@altraforex.com
I would love to help!
P.P.S. Check out software by Altra Forex Group here
Does it repaint?
No, it doesn’t
Thank you Oliver for a good indicator!
But I’m more interested in your new Pharaoh indicator. Please tell me when it will be available and if there will be a MT5 option? Thanks
It will be available very soon!
Yes, it’s for MT4 and MT5.