The ADR Reversal Indicator flags counter-trend setups when the day’s move from the open has already stretched a full Average Daily Range in one direction. Also, a green BUY arrow prints after a stretched downside move reverses with a bullish candle; a red SELL arrow after a stretched upside move reverses. A move that has covered a typical day’s range is prone to slowing or snapping back.
For more like this, browse the more volatility indicators for forex or jump to the full MetaTrader indicator hub.
What the ADR Reversal Indicator does on the chart
Also, the ADR Reversal Indicator measures the Average Daily Range, then flags reversals when the current day’s move from the open has stretched a full ADR in one direction. Also, still, a move that has already covered a typical day’s range is statistically prone to slowing or snapping back.
When price has stretched a full ADR to the downside and prints a bullish reversal candle, a green BUY arrow appears. Thus, when it has stretched a full ADR to the upside and prints a bearish reversal candle, a red SELL arrow appears. The StretchFactor input lets you demand more or less of the ADR before a signal qualifies.
Key features and settings
- Average Daily Range exhaustion measure
- Green BUY arrow after a stretched downside move reverses
- Red SELL arrow after a stretched upside move reverses
- Reversal-candle confirmation required
- Adjustable ADR lookback and stretch factor
- Full alert system: popup, push notification to mobile MetaTrader, email, and sound — all four channels toggle 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 |
|---|---|---|
AdrDays |
Number of days averaged for the daily range | 10 |
StretchFactor |
Fraction of the ADR price must travel before a reversal is flagged | 1.0 |
ArrowOffsetPoints |
Arrow offset from the candle wick | 45 |
EnableAlerts |
Master toggle for the alert system | true |
EnablePopup |
MT4/MT5 popup dialog on signal | true |
EnablePushNotify |
Mobile push notification (configure MetaQuotes ID first) | false |
EnableEmail |
SMTP email (configure Tools -> Options -> Email) | false |
EnableSound |
Play .wav from MT4/Sounds on signal | false |
How to read signals from the ADR Reversal Indicator
This is a counter-trend tool. Also, still, hence, it works best when the larger trend is ranging or near a level, not in a runaway move.
Entry idea (long). Wait for a green BUY arrow after a full-ADR drop. Next, stop below the day’s low.
Entry idea (short). Wait for a red SELL arrow after a full-ADR rally. Then, stop above the day’s high.
Exit idea. Target the day’s open or a partial retrace of the stretched move.
Tuning the ADR Reversal Indicator inputs
Start with the defaults, then tune for your market. AdrDays (default 10) tunes how the calculation behaves; StretchFactor (default 1.0) scales sensitivity — higher values widen the distance and produce fewer signals. 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
In practice, 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, 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 ADR 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 to receive the indicator file. We send it once and add you to free updates.
No spam. Unsubscribe anytime. We never share your address.
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 ADR Reversal measure?
It plots a clear signal layer that the ADR 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. Also, still, 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. Thus, 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. Then, 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 background on volatility envelopes. 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.
Category: this is part of our Volatility collection. Also, still, hence, plainly, yet, browse more Volatility for MetaTrader, or explore every MT4 indicator and MT5 indicator on the site.
External references
- For background on this concept, see Average True Range at Investopedia.
- For broader market context, see market coverage at TheStreet.