Turns that start from weak momentum hold better than turns from strength. The trend reversal arrow indicator confirms five-bar fractal swings and marks a swing low when RSI at the low is below 45, or a swing high when RSI is above 55. A 50-bar exponential average shows the broader trend beside the marks.
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 | 3: Reference EMA, Reversal Up, Reversal Down |
| Alerts | popup, push notification, email, sound |
| Inputs | 14 |
What the Trend Reversal Arrow Indicator draws on the chart
One line and two marks on price.
`Reference EMA` runs dodger blue at width 2.
`Reversal Up` prints lime under swing lows.
`Reversal Down` prints red over swing highs.
`ArrowATRmult` `1.0` sets the gap.
A status block shows the latest readings.
- Reference EMA: line, dodger blue, width 2
- Reversal Up: arrow, lime, width 2, arrow code 233
- Reversal Down: arrow, red, width 2, arrow code 234
What feeds each plot
Swing
`SwingLen` `2` bars on each side confirm a fractal swing, the classic five-bar pattern.
RSI check
`RSIPeriod` `14` at the swing must read below `RSIOversold` `45.0` for a buy, or above `RSIOverbought` `55.0` for a sell.
Context
`RefPeriod` `50` draws the reference average. It frames the trend, but marks do not depend on it.
How to watch it
A lime mark is a swing low in soft momentum.
Similarly, a red mark is a swing high in firm momentum.
Against the EMA, a mark is counter-trend.
With the EMA, however, it is a pullback entry.
`SignalCooldown` `5` also spaces same-side marks.
Each one confirms two bars after the swing.
Alert channels in this build: popup, push notification, email and sound, one message per closed bar.
Swing reversals report once they confirm. `EnableAlerts` is the master switch, and popup delivery is on while the other routes are off.
Every Trend Reversal Arrow Indicator input
Core settings
| Setting | What it does | Default |
|---|---|---|
RefPeriod |
Reference EMA lookback. Reference average length, `50`. | 50 |
RSIPeriod |
RSI period for reversal filter. RSI length, `14`. | 14 |
ATRPeriod |
ATR period for arrow offset. Range window for the gap, `14`. | 14 |
SwingLen |
Fractal half-width (bars each side). Bars on each side of a swing, `2`. | 2 |
RSIOversold |
Buy-reversal RSI ceiling (permissive). RSI ceiling for buys, `45.0`. | 45.0 |
RSIOverbought |
Sell-reversal RSI floor (permissive). RSI floor for sells, `55.0`. | 55.0 |
SignalCooldown |
Min bars between same-side arrows. Bars between same-side marks, `5`. | 5 |
Display settings
| Setting | What it does | Default |
|---|---|---|
ArrowATRmult |
Arrow offset in ATR units. Mark gap in ranges, `1.0`. | 1.0 |
Alert settings
| Setting | What it does | Default |
|---|---|---|
EnableAlerts |
Master alert switch, `true`. | on |
EnablePopup |
Popup, `true`. | on |
EnablePushNotify |
(see inputs panel) | off |
EnableEmail |
(see inputs panel) | off |
EnableSound |
(see inputs panel) | off |
SoundFile |
(see inputs panel) | alert.wav |
Where to run it
Fractal swings with loose RSI checks appear daily on the hourly EURUSD screenshot. On M15 they come each session. On D1 read them against the 50-bar line.
What it misses
RSI 45 and 55 are mild conditions.
Every mark is two bars late.
The EMA plays no part in the signal.
Only popups report by default.
Copy the compiled Trend Reversal Arrow 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 Trend Reversal Arrow Indicator for MT4 and MT5
The zip holds the compiled Trend Reversal Arrow 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 RSIOversold 45.0 instead of 30?
It keeps more swings, since many real lows form with RSI in the 30s or low 40s. Lower it to 35 or 30 for fewer, more stretched setups.
Does the Reference EMA decide the marks?
No. It frames the trend for you. A lime mark below a rising EMA is a pullback buy; one below a falling EMA is counter-trend.
How many bars late is a Reversal Up mark?
Two. A swing needs two closed bars on each side, so the mark appears once both right-hand bars close. It is always placed back on the swing bar itself.
What does SignalCooldown 5 prevent?
Clusters of same-side marks in choppy markets. After a mark, the next one on the same side must wait at least five bars, even if another swing qualifies sooner.
Are results guaranteed?
No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Trend Reversal Arrow Indicator as one input. Always backtest before trading live.
Category: this is part of our Trend collection. Browse more Trend for MetaTrader, or explore every MT4 indicator and MT5 indicator on the site.
External references
- The core method is documented in Foreign Exchange Dealers Coalition on Wikipedia.
- Additional market context is at Stockcharts Ad Percent 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.