The Powerful Forex AUTO STOP REVERS Indicator
The Forex AUTO STOP REVERS indicator is a highly useful technical analysis tool for forex traders. This custom indicator provides automated stop loss and profit taking levels that dynamically trail price action, allowing traders to effectively manage trades.
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How the Forex AUTO STOP REVERS Indicator Works
The Forex AUTO STOP REVERS indicator plots two moving lines above and below the price bars on a chart. The upper line acts as the trailing stop loss level and the lower line acts as the trailing take profit level.
As price moves in favor of the trade, the indicator automatically adjusts the stop loss and take profit to lock in gains. For long trades, the stop loss level moves up and the take profit level moves up. For short trades, the stop loss level moves down and the take profit level moves down.
If price reverses against the trade, the STOP REVERS indicator holds the stop loss level in place. This allows room for normal market fluctuations while maintaining a safety net against excessive losses.
The indicator uses an innovative formula to calculate optimal stop and reverse points based on recent price volatility. This provides dynamic trailing levels that maximize exposure to winning moves while minimizing exposure to losing moves.
Key Benefits of the Forex AUTO STOP REVERS Indicator
1. Hands-free trade management
The AUTO STOP REVERS indicator does the hard work of trade management for you. There’s no need to manually adjust stop loss and take profit levels. The indicator automatically trails price action, locking in profits while capping losses.
2. Customized trading
Traders can customize the indicator based on personal risk tolerance and profit goals. More aggressive trailing levels can be set for an increased reward potential. More conservative trailing levels can be set for less risk exposure.
3. Applicable for all strategies
The indicator can be easily incorporated into any trading strategy or system. Whether you trade price action, indicators, news events, or fundamentals, the dynamic trailing stop loss and take profit levels will aid your trading.
4. Improved risk management
Smart trade management is crucial to long-term trading success. By capping losses using the adaptive stop loss while riding out winning trades, the STOP REVERS indicator dramatically improves risk management.
5. Works across all timeframes
The Forex AUTO STOP REVERS indicator can be used effectively on all timeframes. Short-term scalpers and long-term position traders could both benefit from its automated trade management capability.
How to Install the Forex AUTO STOP REVERS Indicator
The Forex AUTO STOP REVERS indicator can be easily installed on the popular MetaTrader 4 and MetaTrader 5 forex trading platforms.
Step 1
Download the ex4 file of the indicator from a reliable source such as the MetaTrader Market.
Step 2
Open the MetaTrader platform and the Navigator panel. This can be done by clicking the appropriate button or using the Ctrl+N keyboard shortcut.
Step 3
In the Navigator panel, browse to the MQL4 > Indicators folder (for MT4) or the MQL5 > Indicators folder (for MT5).
Step 4
Drag and drop the Forex AUTO STOP REVERS ex4 file directly into the appropriate Indicators folder.
Step 5
Restart the MetaTrader platform to complete the installation. The indicator will now be available for adding to charts.
How to Use the Forex AUTO STOP REVERS Indicator
Using the indicator effectively requires proper configuration and interpretation of signals:
Step 1
Apply the Forex AUTO STOP REVERS indicator to a forex pair chart such as the EUR/USD. The default settings work well for most pairs and timeframes.
Step 2
Identify a suitable trade entry signal from your trading strategy. For example, a bullish price action signal or indicator crossover.
Step 3
Enter a long trade in the direction of the entry signal. Place a stop loss order at the level plotted by the indicator’s upper (stop loss) line.
Step 4
Target taking profits around the indicator’s lower (take profit) line. Manage the trade by not adjusting the stop manually. Allow the indicator to trail the position.
Step 5
The trade is closed automatically when either the stop loss or take profit level is hit. Otherwise, stay in for the ride and allow profits to accumulate.
Optimizing Settings for Precision Trades
The default Forex AUTO STOP REVERS indicator settings provide a good starting point but traders can fine tune inputs to suit their trading style:
ATR Period Sets the lookback period for calculating average true range. Higher values smooth the stop and reverse points. 14 is optimal for most pairs.
Stop Loss Multiplier Controls the distance between current price and the stop loss level. Higher values allow wider stops. 2 is a typical setting.
Take Profit Multiplier Controls the distance between current price and the take profit level. Higher values allow wider profit targets. 1.5 is a commonly effective value.
Breakeven Multiplier Controls when the stop is trailed to breakeven. The trade is locked once price exceeds this multiple of the stop distance. 0 disables breakeven.
Visual Styles Colors, line style and width can be adjusted to suit personal charting preferences.
The Benefits of Using AUTO STOP REVERS Indicator
In summary, the Forex AUTO STOP REVERS indicator offers multiple advantages for forex traders:
- Provides automated trade management
- Trails stop loss level to lock in gains
- Allows profits to run with trailing take profit
- Customizable to suit trading style
- Applicable for all trading strategies
- Easy installation and implementation
- Works flawlessly across all timeframes
By taking much of the emotion out of trade management, the Forex AUTO STOP REVERS indicator helps traders adhere to sound risk and money management principles. This contributes tremendously to long term trading success.
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