Reversal Zone Indicator for MT4 and MT5

Written by Dominic Walsh · Published 8 Jul 2026 · Last updated 24 Sep 2026

A reversal zone should sit where price has overreached, not at the edge of normal trade. The reversal zone indicator places its zones a volatility cushion beyond the twenty-bar high and low, then asks for two confirmations before marking a turn: an RSI extreme and an engulfing or pin-bar candle.

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: Upper Reversal Zone, Lower Reversal Zone, Reversal Zone Buy, Reversal Zone Sell
Alerts	popup, push notification, email, sound
Inputs	15

What the Reversal Zone Indicator shows

Two zone lines and two marks on price.

`Upper Reversal Zone` traces orange red.

`Lower Reversal Zone` traces medium sea green.

`Reversal Zone Buy` prints lime with arrow 233.

`Reversal Zone Sell` prints red with arrow 234.

A status line reports zones, ATR and RSI.

• Upper Reversal Zone: line, orange red, width 1
• Lower Reversal Zone: line, medium sea green, width 1
• Reversal Zone Buy: arrow, lime, width 2, arrow code 233
• Reversal Zone Sell: arrow, red, width 2, arrow code 234

How it all fits together

Where the zones sit

`ZoneLookback` `20` finds the highest high and lowest low. `ZoneAtrMult` `0.6` of an `AtrPeriod` `14` range is added beyond each.

The momentum check

A buy needs RSI at or under `RsiOversold` `30.0`; a sell needs it at or over `RsiOverbought` `70.0`. `RsiPeriod` `14` sets the reading.

The candle check

With `UseEngulfing` on, the turning bar must be an engulfing candle or a pin bar whose wick is over twice its body.

What the output means

Zones widen in fast markets and tighten in quiet ones.

Price reaching a zone alone prints nothing.

All three conditions must line up.

`CooldownBars` `4` spaces repeat marks.

`ConfirmBars` `1` waits for a closed bar.

Warm-up needs about twenty-two bars.

Alert channels in this build: popup, push notification, email and sound, one message per closed bar.

A confirmed zone reversal is what reports. `EnableAlerts` controls it; the popup and the desktop sound playing `AlertSoundFile` ship on, while email and push wait.

Every Reversal Zone Indicator input

Core settings

Setting	What it does	Default
ZoneLookback	Donchian lookback for zone extremes. Bars behind each zone’s extreme, `20`.	20
AtrPeriod	ATR length. Range window for the cushion, `14`.	14
ZoneAtrMult	zone cushion (xATR) outside HH/LL. Cushion beyond the extreme in ranges, `0.6`.	0.6
RsiPeriod	RSI period. Momentum window, `14`.	14
RsiOversold	RSI oversold threshold. Buy-side RSI ceiling, `30.0`.	30.0
RsiOverbought	RSI overbought threshold. Sell-side RSI floor, `70.0`.	70.0
UseEngulfing	require engulfing or pin-bar confirm. Require an engulfing or pin bar, `true`.	on
CooldownBars	min bars between arrows. Bars between marks, `4`.	4
ConfirmBars	1 = signal on closed bar (non-repaint).	1

Alert settings

Setting	What it does	Default
EnableAlerts	(see inputs panel)	on
EnablePopup	(see inputs panel)	on
EnableSound	Desktop sound, ships on, `true`.	on
EnableEmail	(see inputs panel)	off
EnablePushNotify	(see inputs panel)	off
AlertSoundFile	File that sound plays, `”alert.wav”`.	alert.wav

Chart and timeframe notes

Zones beyond the range get reached a few times a week on hourly bars. EURUSD H1 is the reference chart. On M15 the cushion keeps marks from crowding. On D1 a zone reaction is a notable event.

Where the logic runs out

A breakout can blow through a zone.

RSI can stay extreme through a strong trend.

Pin bars at zones are common and often fail.

The sound route ships on.

Copy the compiled Reversal Zone 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.

Background reading on the method behind the Reversal Zone Indicator: Bullish Engulfing Pattern at Investopedia, Donchian channel on Wikipedia.

Download the Reversal Zone Indicator for MT4 and MT5

The zip holds the compiled Reversal Zone 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.

FAQ

Why add ZoneAtrMult 0.6 beyond the extremes?

So a zone marks overreach rather than ordinary trade. The cushion pushes each zone six tenths of a range past the twenty-bar high or low, and it breathes with volatility.

What candle does UseEngulfing accept?

An engulfing bar in the turn direction, or a pin bar whose wick is more than twice its body. Switch it off and any bar in the zone with an RSI extreme qualifies.

Which three checks must line up for Reversal Zone Buy?

When the bar reaches the lower zone, RSI sits at or under thirty, and the candle check passes. All three must hold on the same closed bar.

What does CooldownBars 4 spread out?

Repeat marks while price sits in a zone. After a mark, the next one must wait at least four bars, so a lingering test produces one signal instead of several.

Are results guaranteed?

No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Reversal Zone Indicator as one input. Always backtest before trading live.