2 Bar Reversal Indicator V1.0 MT4

2 Bar Reversal Indicator V1.0 MT4 – Catch Clean Reversals Without the Noise

If you’ve ever watched a strong move suddenly stall and flip, you know how annoying it is to be late by one candle. The 2 Bar Reversal Indicator for MetaTrader 4 (MT4) is designed to flag that precise moment. It’s a non-repaint price action indicator that spots the classic two-bar reversal formation and marks buy/sell entries right on your chart—so you don’t have to eyeball every swing or second-guess yourself. Simple concept, clean signals, minimal fluff… and yeah, it respects your chart space.

What Is a Two-Bar Reversal?

At its core, a two-bar (or two-candle) reversal is a nimble pattern signaling a momentum shift after a push in one direction.

Bullish two-bar reversal (potential bottom):
After a down move, the first candle is typically bearish. The second candle flips bullish and closes above the midpoint or high of the first candle’s body (depending on the chosen sensitivity). The message? Sellers just lost the wheel.

Bearish two-bar reversal (potential top):
After an up move, the first candle is bullish. The second candle turns bearish and closes below the midpoint or low of the first candle’s body. Buyers just got overrun.

There are variations (engulfing bodies, outside bars, strong closes), but the spirit is the same: a quick, two-candle fight where the second candle wins decisively in the opposite direction.

How the 2 Bar Reversal Indicator V1.0 MT4 Works

This indicator continuously scans the incoming candles and checks for two-bar reversal conditions based on your parameters (body size threshold, wick tolerance, minimum relative range, etc.). When criteria are met, it:

Plots a buy arrow beneath the pattern for bullish setups

Plots a sell arrow above the pattern for bearish setups

(Optional) Fires an alert (popup, sound, email/push—depending on your MT4 config)

Because it’s non-repaint, signals stay on the chart after the candle closes. No “ghost entries” that vanish later.

Key Features You’ll Actually Use

Non-repaint logic: Signals are printed on close—what you see is what you get.

Clean buy/sell arrows: Zero clutter; easy to read in fast markets.

Configurable sensitivity: Adjust body/wick ratios, minimum candle ranges, and confirmation rules.

Multi-timeframe friendly: Works from M1 to D1; most traders prefer M5–H4.

Alert suite: On-chart, sound, and push/email alerts supported via MT4.

No martingale, no grids: It’s a signal indicator, not a risk system—pair it with your own money management.

Lightweight code: Won’t slow down your platform when scanning many pairs.

Works on majors, minors, metals, indices, crypto (CFDs): Any symbol your broker streams to MT4.

Risk markers (optional): Show suggested stop zones (e.g., beyond pattern’s high/low).

Backtest-friendly: Validate rules on historical data with MT4 Strategy Tester (as a visual aid).

Why This Pattern Still Works (When Used Right)

Markets don’t move in straight lines; they probe liquidity. A strong two-bar flip often reveals trapped traders—those who bought late into a push or sold right before it snapped back. When the second candle crushes the first candle’s momentum, it exposes that trap. The indicator helps you systematically hunt those flip points and avoid chasing.

Best-Practice Setups (Scalping, Intraday, Swing)

Scalpers (M1–M5)

Combine with a 20–50 EMA to only take two-bar reversals in the direction of the micro-trend.

Add a volatility filter (e.g., ATR > X) so you don’t trade dead sessions.

Target recent structure (previous high/low) and keep stops tight beyond the pattern’s extreme.

Intraday (M15–H1)

Use a session bias: London breakout or NY open. Trade two-bar reversals with the session’s flow.

Confirm with a market structure shift (e.g., break of minor swing).

Partial take-profit at 1R, let the rest trail below/above swing lows/highs.

Swing Traders (H4–D1)

Look for confluence zones: key S/R, Fibs (38.2–61.8), order blocks, round numbers.

Add a volume/volatility context if available.

Plan for multi-R trades (2R–5R) with patience—daily noise can be brutal, so keep risk small.

Entry, Stop, and Exit—A Simple Template

Entry: On candle close after the arrow prints (conservative), or on the next candle’s break of the pattern’s extreme (aggressive).

Stop-Loss: Just beyond the opposite side of the two-bar structure (above high for shorts, below low for longs).

Take-Profit:

Fixed RR: 1.5R–2R for intraday; 2R–4R for swings.

Structure-based: next supply/demand or S/R.

Trailing: below/above higher-lows or lower-highs as trend develops.

Indicator Settings (Recommended Starters)

Minimum Body Ratio: 0.6–0.7 (ensures meaningful bodies, not dojis).

Second Candle Strength: Close should exceed the first candle’s midpoint (or fully engulf for stricter mode).

Wick Tolerance: Moderate; you don’t want pin-bar noise to trigger false flips.

Range Filter: Ignore tiny patterns during low volatility.

Alerts: Enable once you’re satisfied with visual behavior on a few symbols.

Pro tip: Start with EURUSD, GBPUSD, XAUUSD on M15/H1. Once comfortable, expand to your favorite instruments.

How to Install on MT4 (Quick Steps)

Download the “2 Bar Reversal Indicator V1.0” file (.mq4 or .ex4).

In MT4, go to File → Open Data Folder.

Navigate to MQL4 → Indicators and paste the file.

Close and restart MT4 (or right-click Indicators and click Refresh).

Drag 2 Bar Reversal Indicator V1.0 onto your chart from the Navigator panel.

Tweak inputs (timeframe filters, sensitivity, alerts).

Click OK and watch for the next valid two-bar flip.

Risk Management (Read This Twice)

This tool does not manage risk for you. It signals high-probability reversal spots, but you decide position size, stop placement, and profit strategy. Trade small until your plan is battle-tested. Avoid stacking multiple correlated positions. And remember: no indicator wins 100%—that’s not how markets work.

Common Questions (Quick Answers)

Does it repaint?
No. Signals print on candle close and stay there.

Which timeframe is best?
The indicator works across M1–D1. Most traders prefer M5–H4 for a balance of signal frequency and quality.

Can I use it on gold or indices?
Yes—if your broker streams them to MT4. Always test symbol-specific settings.

Do I need extra filters?
You don’t need them, but confluence (moving averages, structure, session bias) can lift win rate and RR.

Who This Indicator Is For

Price action traders who love clean, explainable entries.

Scalpers & intraday traders wanting fast confirmation at turning points.

Swing traders looking for tight risk at fresh reversals.

EA builders who want a transparent, rule-based signal as a trigger.

If you’re after a “set-and-forget martingale” (please don’t), this isn’t it. If you want clarity at the turn, you’ll feel right at home.

Final Thoughts

The 2 Bar Reversal Indicator V1.0 MT4 nails a timeless idea: when price rejects the prior push in just two candles, it’s telling you something. With non-repaint arrows, sensible filters, and alerts, you get a practical edge without clutter. Dial in your risk, add a simple confluence or two, and you’ve got a playbook you can actually follow—day after day, session after session.