What is the Parabolic Regression Stop & Reverse Indicator for MT4?

The Parabolic Regression Stop & Reverse Indicator is a technical indicator that can be used to identify potential reversals in the market. The hand consists of two lines, a red line and a green line. The red line represents the price at which the trend has been reversed (pressured), while the green line indicates where markets are currently heading.

Parabolic Regression Stop & Reverse Indicator

Download Free Parabolic Regression Stop & Reverse Indicator

When using this indicator, deciding whether you want to track short-term or long-term trends is essential. If you’re only tracking short-term trends, you should place your buy order below the red line and sell order above the green line. If you’re following long-long term trends, then place your buy orders above the red line and sell orders below the green line.

How to use the Parabolic Regression Stop & Reverse Indicator for MT4?

To use the stop & reverse function on your Forex chart,  click on the “Indicators” tab at the top of the screen. Then select “Parabolic regression.” Under “Parameters, “tick the box next to “Stop level” and enter a value above which you would like the indicator to trigger a buy order (in dollars) and below which you would like it to trigger a sell order (also in dollars). Tick the box next throw beside “Reverse level.” You now need to set up triggers for each action: If both boxes are not checked, no orders will be placed regardless of what values are entered into either field. To make sure your stops work as expected, tick both boxes! Finally, hit OK.

Parabolic Regression Stop & Reverse Indicator MT4 trading settings

You might want to adjust various settings when using this indicator, depending on your trade strategy. For example, you may want to choose a timeframe for the data analysis (short-term or long-term) and a market condition (up Trend or Down Trend). You also may want to modify the slope parameter if you’re trading with trendlines; changing it will affect how quickly the line slopes down or up.

Parabolic Regression Stop & Reverse Indicator Advantages

There are several advantages to using a forex stop and reverse indicator:

-It allows you to stay ahead of the market trend by anticipating changes in direction.

-It gives you an edge when it comes to making profitable trades. By predicting when a price is about to change, you can take advantage of short-term fluctuations before they become long-term trends.

-By buying or selling before a reversal happens, you minimize risk while still achieving your objectives (i.e., making money).

Parabolic Regression Stop & Reverse Indicator Disadvantages

There are a few disadvantages to using the forex Parabolic Regression Stop & Reverse Indicator. First, it is not always accurate. Second, its signals can be unreliable and unpredictable. And finally, it can lead to over-trading if misused. So, before using this indicator in your trading strategy, ensure you understand how it works and its limitations. Otherwise, you may end up losing money instead of making profits!

Indicator installation on MT4

To install the Parabolic Regression Stop & Reverse Indicator on the MetaTrader 4 (MT4) platform, follow these steps:

  1. Download the Parabolic Regression Stop & Reverse Indicator file in .ex4 format.
  2. Open the MT4 platform and click on the “File” menu.
  3. Select “Open Data Folder” to open the folder where the indicators are stored.
  4. Copy the Parabolic Regression Stop & Reverse Indicator .ex4 file to the “MQL4” folder.
  5. Close the MT4 platform and restart it.
  6. Right-click on the chart where you want to add the indicator.
  7. Select “Indicators” from the list, then “Custom” from the sub-list.
  8. Look for the Parabolic Regression Stop & Reverse Indicator and double-click it to add it to the chart.
  9. Adjust the settings for the indicator as desired, then click “OK.”

The Parabolic Regression Stop & Reverse Indicator should now be installed and added to the chart in MT4.

Parabolic Regression Stop & Reverse Indicator mt4

Parabolic Regression Stop & Reverse Indicator mt4 free download

Conclusion

The Parabolic Regression Stop & Reverse Indicator can be valuable in your forex trading arsenal. However, ensure you understand its limitations before using it in your strategies. And keep in mind that the signal generated by this indicator is not always accurate or reliable. So, use it with caution and prudence!

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Telegram Channel | Quora | Reddit

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