Lucky Reversal Indicator MT4 displays BUY/SELL signals using arrows on the price chart, helping traders identify entry opportunities more conveniently. However, since this is a repainting indicator, you should exercise a certain level of caution when using it (it is recommended to combine it with other indicators or information before making entry decisions).
Introduction to Lucky Reversal Indicator
Reversal trading is a strategy commonly used by many traders. There are various indicators that help detect potential trend reversals early, and the Lucky Reversal Indicator is one of them. First, let’s take a look at how this indicator is displayed on the MT4 trading platform:
As you can see, when the market reverses from a downtrend to an uptrend, a green arrow appears indicating a potential BUY entry, along with a green line that marks the support zone.
Conversely, when the market reverses from an uptrend to a downtrend, a red arrow from the Lucky Reversal Indicator MT4 appears indicating a potential SELL entry, together with a red line that marks the resistance zone.
Weaknesses of the Lucky Reversal Indicator – Notes When Using
There are two weaknesses you need to be fully aware of before trading live with the help of this indicator:
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This is a repainting indicator: While looking at historical data, you may be surprised by its accuracy in “buying at the bottom – selling at the top,” but this is due to repainted data. Therefore, when trading in real time, you cannot rely on it in the same way.
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This indicator has a lag: The BUY or SELL signals only appear after the market has completed a reversal. The reversal arrows are drawn on the chart only once the reversal has been confirmed. This shows that the Lucky Reversal Indicator is lagging.
In practice, when trading, this indicator will display a white box (as shown in the image below) to signal that a potential reversal may occur at the current price level.
How to Use the Lucky Reversal Indicator
Although it is a repainting and lagging indicator, it can still be useful if applied correctly.
To use the Lucky Reversal properly, you need to wait at least 10–15 candlesticks after the arrow and horizontal line appear. This helps confirm that a trend reversal has actually formed. Next, you should wait for reversal candlestick patterns in the direction of the new trend before entering a trade.
As mentioned earlier, you should not rely on the Lucky Reversal Indicator alone. Instead, combine it with other indicators or confirmations of market structure changes.
For example, you can use the crossover of a fast and a slow moving average to confirm a trend reversal.
Or, you may use MACD divergence as additional confirmation.
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