A reversal has more power when three things coincide: a fresh swing extreme, stretched momentum, and a candle that takes out the prior bar. The power reversal indicator checks all three and can also demand a tick volume spike. It draws exhaustion bands two ranges from the previous close for context.
This build ships as a compiled .ex4 for MT4 and .ex5 for MT5; the screenshots below come from EURUSD H1.
| Platforms | MT4 (.ex4) + MT5 (.ex5) |
|---|---|
| Chart window | Main price chart |
| Plots | 4: Power Buy, Power Sell, Upper Exhaustion, Lower Exhaustion |
| Alerts | popup, push notification, email, sound |
| Inputs | 16 |
On screen
Two band lines and two marks on price.
`Upper Exhaustion` traces orange, dotted.
`Lower Exhaustion` traces dodger blue, dotted.
`Power Buy` prints lime at width 3.
`Power Sell` prints red at width 3.
Bands sit two ranges from the prior close.
- Power Buy: arrow, lime, width 3, arrow code 233
- Power Sell: arrow, red, width 3, arrow code 234
- Upper Exhaustion: line, orange, width 1
- Lower Exhaustion: line, dodger blue, width 1
What happens on each bar
Swing
`InpPivotLookback` `3` bars on each side must confirm a local low for a buy, or a local high for a sell.
Momentum
`InpRsiPeriod` `14` must read `InpRsiOversold` `40.0` or less for a buy, `InpRsiOverbought` `60.0` or more for a sell.
Power close
The candle must close up and above the prior bar’s high for a buy. `InpRequireVolume` ships `false`; on, it adds a tick volume spike.
Making it useful
A lime mark is a swing low with a strong close.
A red mark is a swing high with a weak close.
Bands show stretch versus the last close.
`InpCooldownBars` `6` spaces the marks.
With `InpNonRepaint` on, only closed bars count.
Warm-up needs about twenty-five bars.
Alert channels in this build: popup, push notification, email and sound, one message per closed bar.
A power reversal reports once its bar closes. `InpEnableAlerts` gates it; popup and sound deliveries begin enabled, and the rest stay off.
Every Power Reversal Indicator input
Core settings
| Setting | What it does | Default |
|---|---|---|
InpRsiPeriod |
RSI period. RSI length, `14`. | 14 |
InpRsiOversold |
RSI oversold threshold. RSI ceiling for buys, `40.0`. | 40.0 |
InpRsiOverbought |
RSI overbought threshold. RSI floor for sells, `60.0`. | 60.0 |
InpPivotLookback |
Swing pivot lookback. Bars around the swing, `3`. | 3 |
InpVolPeriod |
Volume SMA period. Window for the volume baseline, `20`. | 20 |
InpVolMultiplier |
Volume spike multiplier. Volume spike size, `1.1`. | 1.1 |
InpRequireVolume |
Require volume spike (set false for more signals). Demand a volume spike, `false`. | off |
InpAtrPeriod |
ATR period. Range window for the bands, `14`. | 14 |
InpCooldownBars |
Min bars between signals. Minimum spacing between marks, `6`. | 6 |
InpNonRepaint |
Skip current bar. | on |
Alert settings
| Setting | What it does | Default |
|---|---|---|
InpEnableAlerts |
Master alert switch. | on |
InpEnablePopup |
Popup alerts. | on |
InpEnablePush |
Push alerts. | off |
InpEnableEmail |
Email alerts. | off |
InpEnableSound |
Sound alerts. Sound, ships on, `true`. | on |
InpSoundFile |
(see inputs panel) | alert.wav |
Placing it well
Swing reversals with a strong close show up a few times a week on hourly charts; the screenshot uses hourly EURUSD. On M15 they come daily. On D1 each one marks a notable turn.
When the Power Reversal Indicator fails
RSI 40 is a mild extreme.
The volume check ships off.
Strong closes can still be traps.
Sound delivery begins enabled.
Copy the compiled Power Reversal Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.
Download the Power Reversal Indicator for MT4 and MT5
The zip holds the compiled Power Reversal Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.
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FAQ
Why use InpRsiOversold 40.0 instead of 30?
Forty catches more turns, since RSI often reverses before reaching 30 on hourly charts. Lower it to 30 if you want fewer setups that start from deeper, more stretched lows.
What makes a close a power close?
For a buy, the candle closes higher than it opened and above the previous bar’s high. The bar has to reclaim the whole prior range.
What does InpRequireVolume add when on?
A tick volume check. The signal bar then needs volume above 1.1 times its 20-bar average, which trims reversals that happen on quiet, low-participation bars.
What are the Lower Exhaustion bands for?
Context only. They sit two average ranges below and above the previous close, showing how far the current bar has stretched. The marks do not depend on them at all.
Are results guaranteed?
No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Power Reversal Indicator as one input. Always backtest before trading live.
Category: this is part of our Signal and Forecast collection. Browse more Signal and Forecast for MetaTrader, or explore every MT4 indicator and MT5 indicator on the site.
External references
- Learn more about the underlying method in Mental accounting on Wikipedia.
- For wider market background, see Deathcross at Investopedia.
About the author
Written by Dominic Walsh, a Forex trader and MT4/MT5 indicator, Expert Advisor and script developer. Every tool on forexmt4systems.com is tested on live charts before release and ships with ready-to-use compiled MT4 (.ex4) and MT5 (.ex5) files. Learn more about the trader and developer behind this site.
How we build, test and correct every tool: Editorial & Testing Policy. Trading carries risk; see the disclaimer.