What is the Reversal Fractals Indicator for MT4?
The Reversal Fractals Indicator (RFI) is a technical indicator used to predict the market’s direction. It consists of two moving averages: an 8-week SMA and a 26-week SMA. The RFI oscillates between 0 and 100, with higher values indicating that the market is bullish and lower values indicating that the market is bearish.
How to use the Reversal Fractals Indicator for MT4?
The RFI uses fractals to analyze price action, which helps you determine whether prices trend upwards or downwards. When prices reach either Moving Average Support or Resistance levels, they “resolve” (i.e., cross over) to indicate which direction the trend will continue.
Reversal Fractals Indicator MT4 trading settings
To start, open your trader account at MetaTrader 4 (MT4) and click the “Indicators” tab at the top left corner of your screen. Then locate and select “Reversal Fractals Indicator” from the list of available indicators. On the settings page that opens next, you will need to specify a few critical parameters:
-Start date/time range: This determines when data for analyzing reversals should begin flowing into your system – usually, this setting is automatically configured based on the GMT zone; if not, you can enter the correct value here or choose the Expiry Time Range option to have it processed based on specific transaction ending times; Alternatively use Whole Day / Week / Month options if needed.
-Number of candles per period: This parameter specifies the number of bars used for analysis – typically, it’s enough to include 3 or 5 consecutive bars within the timeframe specified in the Start Date/Time Range field; however, depending upon circumstances, sometimes more extended period might be required as well.
-Step size (%): This defines the percentage size increase or decreases applied to the price’s Moving Average when it crosses over from one direction to the other; for example, if you specify 5% as the value of the Step Size parameter, then every time price movement A causes MAB (Moving Average B) crossing over from downwards to upwards direction, MAB itself will be increased by five pips (this means that after each such crossing its value will grow by 0.05%, or approximately 1 Satoshi per day at current market rates).
-Fractals type: This determines whether RFI should use Simple Fractals or Complex Fractals algorithm; Simple Fractals are less accurate but faster, while Complex Fractals are more accurate but slower.
-Fractals Dimension: This slider determines the resolution of fractal bars – higher values will result in finer analysis, while lower values will lead to coarser details; defaults to Medium (10% frequency)
Click the “Start” button at the top left corner of RFI’s settings page to begin processing indicators. As indicator data flows into your system, it will start computing new Fractals Dimension values and displaying the corresponding bar in the chart window.
Reversal Fractals Indicator Advantages
Forex reversal fractals indicators are a powerful tool that can help you identify potential opportunities in the market. They work by showing how prices interact with each other over time and can provide you with valuable insights into where the market is going. Here are some of their advantages:
-Reversal fractals indicators offer accurate short-term forecasting capabilities. This means that they can help you make informed decisions about buying or selling stocks, currencies, commodities, or anything else in the markets.
-They are also effective at identifying trends and patterns. This makes them an invaluable tool for traders who want to capitalize on sudden changes in price movements.
-Finally, reversals fractals indicators often provide helpful information about support and resistance levels – both of which can be very profitable areas to trade from a long-term perspective.
Reversal Fractals Indicator Disadvantages
The Forex reversals fractals indicator is a technical analysis tool first developed by traders to identify potential market reversals. It uses candle patterns as price movement indicators, and it has been highly successful in predicting market trends. However, there are a few drawbacks to using the forex reversal fractals indicator:
-It cannot be easy to use correctly. The indicator requires a significant understanding of Candle Patterns, Elliott Waves Theory, and Price Action. Unless you have considerable experience with these concepts, you will likely be unable to find accurate signals with this tool.
-It can be dangerous if misused. If you’re not careful when trading with the forex reversal Fractal Indicator, your account could get severely damaged – even lost altogether! Make sure you understand how this tool works before using it in any live trades – otherwise, you could lose money instead of making profits!
Reversal Fractals Indicator installation on MT4
To install the Reversal Fractals indicator on the MetaTrader 4 (MT4) platform, follow these steps:
- Download the indicator file in the format of “.ex4.”
- Open the MT4 platform and click “File” in the top menu, then select “Open Data Folder.”
- In the data folder, open the “MQL4” folder, then the “Indicators” folder
- Copy the downloaded “.ex4” file into the “Indicators” folder
- Restart the MT4 platform
- Go to the “Navigator” window in the bottom left corner of the MT4 platform, then click on “Custom Indicators.”
- Locate the Reversal Fractals indicator in the list and drag it onto the chart to apply it.
The Reversal Fractals Indicator can be a handy tool for traders predicting market trends. However, understand how this indicator works before using it in live trades – otherwise, you could lose money!