2 Bar Reversal Indicator MT4 + MT5

The 2 Bar Reversal Indicator scans every closed bar for a bullish or bearish engulfing pattern – the body of the current bar fully covers the body of the previous bar in the opposite direction. Also, when the pattern fires a green BUY arrow prints below a bullish engulfing bar or a red SELL arrow prints above a bearish one. A minimum body-multiplier filter cuts out weak two-bar setups so you only see the clean ones.

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What the 2 Bar Reversal Indicator does on the chart

Also, the 2 Bar Reversal Indicator scans every closed bar for a classic engulfing pattern. Also, still, a bullish engulfing happens when a bullish bar’s body fully engulfs the prior bearish bar’s body. A bearish engulfing is the mirror.

When the pattern fires, the indicator prints a green BUY arrow below the bullish engulfing bar or a red SELL arrow above the bearish engulfing bar. Thus, the default minimum body multiplier (1.10x) requires the engulfing bar to be at least 10% larger than the bar it engulfs – this filters out weak two-bar setups.

Key features and settings

• Detects bullish engulfing: current green bar fully engulfs prior red bar’s body
• Detects bearish engulfing: current red bar fully engulfs prior green bar’s body
• Configurable minimum body multiplier to filter weak setups
• Arrows print only on closed bars – no repaint
• No continuous line – just clean arrows at qualifying bars
• Full alert system: popup, push notification to mobile MetaTrader, email, and sound — all four channels can be toggled independently from the inputs panel. Alerts fire once per closed bar so you never get spammed mid-tick.
• Built for both MT4 and MT5; works on every timeframe and every symbol your broker offers.
• Lightweight code that does not slow down the chart.

Setting	Description	Default
MinBodyMultiplier	Current bar body must be at least this multiple of the prior bar body	1.10
ArrowOffsetPoints	Arrow offset from the candle wick	40
EnableAlerts	Master alert toggle	true
EnablePopup	Popup on engulfing print	true
EnablePushNotify	Mobile push notification	false
EnableEmail	SMTP email	false
EnableSound	Play sound on engulfing	false

How to read signals from the 2 Bar Reversal Indicator

In practice, engulfing bars at swing points are stronger than engulfings in the middle of a range. Also, still, hence, combine with structure for best results.

Entry idea (long). Wait for a green BUY arrow at a swing low or strong support. Next, enter on the open of the next bar.

Entry idea (short). Wait for a red SELL arrow at a swing high or resistance.

As a result, Exit idea. Stop sits just beyond the engulfing bar’s opposite extreme. Then, target the next clear horizontal level.

Tuning the 2 Bar Reversal Indicator inputs

Start with the defaults, then tune for your market. MinBodyMultiplier (default 1.10) is the threshold a reading must clear before it counts as a signal. Thus, yet, every alert channel — pop-up, sound, email and mobile push — toggles independently in the same inputs panel, and alerts fire once per closed bar.

Recommended timeframes and instruments

this indicator needs room for structure to form, so favour the higher timeframes.

• H1 and H4 for reliable, tradable structures.
• Daily for the cleanest patterns and levels.

Below H1 you get frequent, lower-quality structures. Also, still, hence, truly, it works best on the majors and XAUUSD where swings are well defined.

How to install on MT4 and MT5

Installation is the same for every indicator on this site. Next, plainly, unzip the download, copy the compiled .ex4 into your MT4 MQL4/Indicators folder (or the .ex5 into MT5 MQL5/Indicators), refresh the Navigator, then drag it onto the chart. For the full step-by-step with alert setup and troubleshooting, see our guide to installing MT4 and MT5 indicators.

Best practices and tips

• Wait for the pattern to complete and confirm with price action before acting.
• Add a momentum check so you are not catching a falling knife.
• Wait for the bar to close before acting on a signal.
• Backtest your configuration on at least 200 closed bars before trading live.
• Keep position sizing small while you learn how the tool behaves on your instrument.
• Review your results weekly and prune settings that underperform.

Get the 2 Bar Reversal for MT4 and MT5

One email unlocks the full library. This the tool plus the other 1,382 free MT4, MT5 and TradingView indicators we publish and maintain. Also, no paywall, no upsell, same opt-in for all of them – you give an email once and you can grab every tool we ship.

Enter your email and the file lands in your inbox right after. The download is free.

Built by forexmt4systems.com

This it is one of 1,383 free MT4, MT5 and TradingView indicators we publish and maintain. Then, every tool ships with ready-to-use compiled MT4 (.ex4) and MT5 (.ex5) files, a 4-channel alert system (popup + mobile push + email + sound), and is loaded on EURUSD H1 before release to confirm it draws cleanly without repainting. The same one-step email opt-in below unlocks the entire library – not just this one indicator.

FAQ

What does the 2 Bar Reversal measure?

It plots a clear signal layer that the 2 Bar Reversal computes from recent price and volume on the chart.

Is the indicator non-repaint?

By default the indicator only confirms a signal on the bar close, so the printed signal locks in once that bar closes. Thus, yet, still, some users prefer the early intra-bar mode for faster signals — both options are in the inputs.

Which timeframe should I use?

There is no single best timeframe. Thus, m15 to H1 is a common starting point for intraday traders, and H4 to D1 works for swing traders. Backtest the configuration on the timeframe you actually trade.

Does it work on instruments other than forex?

It works on any instrument MT4 and MT5 supports — forex majors, gold (XAUUSD), indices like US30 and NAS100, and major cryptos. Also, still, hence, truly, hence, fast-moving instruments may need a smaller period setting.

Can I add alerts?

Yes. Next, Pop-up, sound, push, and email alerts live in the inputs panel. On MT4 and MT5 the alert plays on the bar close that triggers the signal. In addition, this indicator ships with full alert functionality built in: popup alerts on the chart, push notifications to mobile MetaTrader, email alerts, and a sound alert with a configurable .wav file. you toggle each channel independently from the inputs panel (EnableAlerts, EnablePopup, EnablePushNotify, EnableEmail, EnableSound). Alerts trigger once per closed bar.

For external background reading, see the technical indicator basics. Are results guaranteed?
No. Trading involves risk. Results are not guaranteed. Past performance is not indicative of future results. Use the tool as one input. Always backtest before trading live.