On closer observation, the Forex Prediction MT4 Indicator seems to work based on a three bar reversal pattern. In this pattern, prices make a low, lower low and a higher low for a bullish signal and high, higher high and lower high for a bearish signal.

Forex Prediction MT4 Indicator - Powerful 3 Bar Reversal Indicator

While this three bar pattern is fairly useful in capturing turning points in the market, they are prone to false signals especially when forming within a trend. Given the drawback in this indicator it is therefore best advised to use the indicator alongside other trading systems or chart patterns. In this article, we outline three ways how you can use the Forex MT4 Prediction indicator.

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The Forex Prediction MT4 Indicator Settings

Chart patterns are relatively reliable but the biggest drawback is trying to wait for confirmation of the bias. The Forex Prediction MT4 Indicator can be a valuable tool in terms of confirming the bias. The first chart below shows a descending wedge/triangle pattern formed on the daily chart. After prices broke out from the descending wedge pattern, the Forex Prediction MT4 Indicator managed to print a buy signal. Although not entirely accurate, when taken in real time along with the breakout from the wedge pattern, the long signal would have resulted in a fairly profitable trade. Of course, there is a certain degree of flexibility as the chart below shows prices dipping back to retest the breakout level, slightly below the original buy signal. Alternatively, the second long signal shown on the chart could also be used as an entry to the chart pattern.

Forex Prediction MT4 Indicator - Chart Patterns

Forex Prediction MT4 Indicator Tops and Bottom

The Forex Prediction MT4 Indicator is ideal when it is formed near the top or bottom of an extended trend. The next chart shows a 50 and 20 period EMA added to the chart with the Forex MT4 Prediction indicator. Here we can see that the most reliable signals are those formed at the top of the trend and at the bottom of the trend. The Forex Prediction MT4 Indicator tends to signal a trend change a bit before the moving averages crossover. Therefore due caution must be applied.

Forex Prediction MT4 Indicator - Tops and Bottoms

The most ideal way is to watch for the Forex Prediction MT4 Indicator to give an opposite signal in a trend and then buy or sell in the direction of the signal when the moving averages line up accordingly. When applied to the Daily charts the Forex Prediction MT4 Indicator increases in its accuracy. The daily chart below shows the Forex Prediction MT4 Indicator alongside the moving averages applied to the chart. It is easy to see how the buy and sell signals line up fairly accurately and shows the changes in the trends.

MT4 Indicator - Daily Charts" width="975" height="418" class="alignnone size-full wp-image-7241" />Forex Prediction MT4 Indicator - Daily Chart

As illustrated in the above examples, the Forex MT4 prediction indicator is a three bar signal indicator. While the reliability is questionable on the lower time frame, when used on the daily and higher chart time frames, the Forex MT4 prediction indicator tends to give a fairly higher rate of reliability in terms of signaling market direction.

Time Frames

Technically speaking, you can use this indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency. With the right application and practice (on your MT4 demo account first of course!) you should be able to master this strategy and indicator in no time.

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Forex Prediction MT4 Indicator Download

We have provided this indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.

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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey. Visit our Free MT4 Indicator Download page. And if you can, you really should invest in a proven MT4 Expert Advisor to help you generate some profit on full auto-pilot. We highly recommend this powerful MT4 Expert Advisor. We hope you have enjoyed this post as much as we have creating it. Good luck and thank you for your readership.