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Forex Reversal Pattern Indicator

A failed attempt to close higher/lower is a very simple potential forex reversal pattern and in a recent project I had a requirement to be able to identify this pattern programmatically.

I wrote a routine to spot the pattern and put it in an indicator so that I could offer it to my readers to hopefully help them a little in their trading. It can be used as part of an existing strategy or can even work quite nicely on it’s own.

The reversal pattern is more reliable in a ranging market so I would recommend using it in the Asian session.

To make it even easier to spot a potential reversal I coded the indicator to change the color of the relevant line, either highest close or lowest close, when a high/low exceeds it but fails to close above/below. An entry trigger could be to enter on the next candle after the color change has occurred.

If you’re interested in developing your MQL4 coding skills it’s worth taking a look at the code for some useful techniques I use to do very common tasks. Things like scanning through bars for a pre-determined range for example are illustrated within the code and can easily be expanded and adapted to meet your particular needs.

Watch the indicator for a few days during the Asian session and see if you can spot any patterns and come up with ways to use them in your trading.

If you find the indicator useful then please feel free to post a comment below. I’d love to hear your feedback.

Tip – Try using the indicator along with divergence from an RSI 21 period for strong reversal signals.

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Category: Forex Trading

About the Author (Author Profile)

Steve Fleming has been a professional programmer and Internet professional for over 15 years. AutomatedTradingSoftware.com is a way to empower the non-programmers and offers a FREE 5 day E-course showing how to build an EA (expert advisor). Steve also offers his mql programming services at very competitive rates and has programmed many, many strategies both for himself and his ever growing list of satisfied clients.

Comments (3)

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  1. Charlie says:

    Steve,
    Thanks for the indicator.
    You’ve whetted my appetite for MQL4 programming so I’m gonna dip my toes.

    All the best to you
    Charlie

    • Steve says:

      Good to hear Charlie. There’s plenty of information and resources on the internet so as long as you remain motivated you’ll get it cracked. Stick with it and you’ll be fine. Remember the ‘F1’ key is your best friend 🙂

      Steve

  2. Ameer Ali says:

    Hi i will like to get an EA coded i have a good system i will like to know how much it will cost Thank you

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