A scalping reversal needs price stretched, momentum turning and a bar that rejects. The reversal scalping indicator checks four things on each closed bar: a fast stochastic curling out of an extreme, a 7-bar RSI near its own extreme, a wick at least 45% of the bar, and a close beyond an ATR envelope around a 21 EMA.
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: Buy, Sell, Upper Envelope, Lower Envelope |
| Alerts | popup, push notification, email, sound |
| Inputs | 17 |
What the build shows
Two envelope lines and two marks on price.
`Upper Envelope` traces dotted orange above price.
`Lower Envelope` traces dotted orange below price.
`Buy` prints lime at width 2 with arrow 233.
`Sell` prints red at width 2 with arrow 234.
A status block shows stochastic, RSI and sensitivity.
- Buy: arrow, lime, width 2, arrow code 233
- Sell: arrow, red, width 2, arrow code 234
- Upper Envelope: line, orange, width 1
- Lower Envelope: line, orange, width 1
Behind the plots
Envelope
`EMA_Period` `21` is the centre. `EnvelopeMult` `1.2` times an `ATR_Period` `14` range sets each edge.
Momentum
`Stoch_K` `5`, `Stoch_D` `3` and `Stoch_Slow` `3` give a fast stochastic. On `SENS_MED` a buy needs it to curl up from 20 or below, with `RSI_Period` `7` at 35 or below.
Rejection
The bar needs a lower wick of `WickPct` `0.45` of its range and a close at or below the lower envelope.
What the plots are telling you
Dotted lines frame the normal range.
Marks appear only outside that frame.
Long wicks show the rejection.
Low sensitivity demands deeper extremes.
High sensitivity accepts shallower ones.
`ConfirmBars` `1` keeps to closed bars.
Alert channels in this build: popup, push notification, email and sound, one message per closed bar.
Each scalping reversal sends one message. `EnableAlerts` is the master toggle, and the popup, mobile route and sound start on, while email waits.
Every Reversal Scalping Indicator input
Core settings
| Setting | What it does | Default |
|---|---|---|
Sensitivity |
Rule sensitivity. How deep the extremes must be, `SENS_MED`. | SENS_MED |
Stoch_K |
Stochastic %K period (scalp). Fast stochastic length, `5`. | 5 |
Stoch_D |
Stochastic %D smoothing. | 3 |
Stoch_Slow |
Stochastic slowing. | 3 |
RSI_Period |
RSI period (scalp). Fast RSI length, `7`. | 7 |
EMA_Period |
Mid EMA period. Envelope centre, `21`. | 21 |
ATR_Period |
ATR period. Range window, `14`. | 14 |
EnvelopeMult |
ATR envelope multiplier. Envelope width in ranges, `1.2`. | 1.2 |
WickPct |
Min wick / range to qualify rejection. Smallest rejection wick, `0.45`. | 0.45 |
ConfirmBars |
Confirmation bars (1 = closed only). Closed bars only, `1`. | 1 |
Display settings
| Setting | What it does | Default |
|---|---|---|
ArrowOffsetPts |
Arrow distance from bar in points. Mark gap in points, `10`. | 10 |
Alert settings
| Setting | What it does | Default |
|---|---|---|
EnableAlerts |
Master alert toggle. | on |
EnablePopup |
Popup alert. | on |
EnablePushNotify |
Push notification. Mobile route, ships on, `true`. | on |
EnableEmail |
Email alert. | off |
EnableSound |
Sound alert. | on |
SoundFile |
Sound file name. | alert.wav |
Which chart earns the most from it
Fast settings suit M5 and M15 charts in active sessions. The H1 reference chart shows a few marks a week. On M5 the London open gives most of them. On H4 marks become rare.
Its blind spots
Four checks together rarely line up.
Stretched moves can stretch further.
Spread eats into scalping targets.
Mobile and sound routes ship on.
Copy the compiled Reversal Scalping 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 Reversal Scalping Indicator for MT4 and MT5
The zip holds the compiled Reversal Scalping 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.
Download this indicator free
Enter your email and the file is yours. You also get the full MT4 and MT5 library.
FAQ
What does Sensitivity SENS_MED ask of the stochastic?
A curl up from 20 or below for a buy: the previous reading at or under 20, lower than the one before, and the current reading higher. Sells mirror it at 80.
What does WickPct 0.45 require?
A rejection wick at least 45% of the bar’s range, on the side of the stretch. Bars with small wicks fail the check even when the other three pass.
How far out does EnvelopeMult 1.2 sit?
About 1.2 average ranges from the 21-bar exponential average. A buy needs the close at or below the lower edge, so price has to stretch clearly away from its mean first.
Why use RSI_Period 7 instead of 14?
A seven-bar RSI reacts fast enough for scalping charts. Together with the fast stochastic, it checks that momentum has stretched on the same short horizon as price.
Are results guaranteed?
No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Reversal Scalping 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
- The core method is documented in CAN SLIM on Wikipedia.
- Additional market context is at S And P Gsci Indices at StockCharts ChartSchool.
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.