Reversal Strategy MT5

The Reversal Trend Arrow strategy for MT5 is a method centered around identifying trend reversals using arrow signals, primarily filtered by bands and, optionally, the Stochastic DSS Bressert indicator.

This strategy operates based on the principle of overbought and oversold conditions. It suggests waiting for a price movement outside the bands and then looking for a reversal arrow to appear in the opposite direction to initiate a market entry. Alternatively, traders can wait for confirmation by observing the alignment of the Stochastic DSS Bressert with the arrow.

Strategy Setup

Time Frame: Suitable for 15 minutes or higher.
Currency Pairs: Works well with any currency pairs, especially synthetic pairs like EURGBP, and also applicable to EUR/USD.
Platform: Metatrader 5. Metatrader 5 Indicators Used
TMA Bands
Arrow Reversal (non-repainting)
DSS Bressert

Trading Rules for Reversal Trend Arrow MT5 Buy Signal:

Enter a buy position when the price breaches the lower bands and a reversal arrow signal is indicated.
For a more cautious approach, confirm with the DSS Stochastic aligning with the arrow.

Sell Signal:

Initiate a sell position when the price breaks above the upper bands and a reversal arrow signal is visible.
To exercise caution, ensure the DSS Stochastic aligns with the arrow.

Exiting Positions:

Set the initial stop loss a certain number of pips below/above the prior swing high/low.
Aim for a profit target that ensures a minimum ratio of 1:1 compared to the stop loss.

The Reversal Trend Arrow strategy combines band analysis with arrow reversal signals to identify potential trend reversals in the market. It emphasizes waiting for price movements beyond the bands and confirming these signals with the appearance of reversal arrows or aligning them with the Stochastic DSS Bressert. The strategy's structured approach offers traders a methodical means to identify potential entry and exit points, providing guidelines for managing risk.

Trades Examples