The Reversal indicator Diamond, which will be discussed in this article, will be suitable for those traders who prefer to be constantly in the market. All you have to do is follow his signals. The indicator is very simple but effective. It can be used to trade any currency pair on three timeframes: 15 minutes, an hour and four hours. The main advantage of this analysis tool is that it does not redraw its signals, which are displayed on the chart as points. Reversal Diamond is quite a self-sufficient indicator. You can build your trading exclusively on his recommendations. However, in combination with other indicators, it is possible to reduce the number of losing trades, and thus improve the overall trading result.

Installation and adjustment of the indicator

In order to set the indicator in MT4, proceed as follows. Using the menu item of the terminal “File” we enter the “Open data directory”. In the window with MT4 files we are looking for the “MQL4” folder and then for the “Indicators” folder. Copy the Reversal Diamond file into this folder. After that in MT4 “Navigator” select “Indicators” and, having opened the context menu with the right button, click “Update”. Now RD can be found in the “List of indicators” of the terminal and set it on the chart.

What concerns the parameters, there are only three of them and they concern only the signal notification. To enable push notifications you need to use AlertOn, e-mail notifications – MailOn, beep – SoundOn.

Trade by RD signals

In the chart this forex indicator looks like this:

Buy when a green dot appears, sell when a red dot appears. Stochastic, for example, can be used as a signal filter. The signal strength increases if the stochastics are in the corresponding zone. When a green dot appears, it’s oversold; when a red dot appears, it’s overbought.

Leave the trade by the reverse signal. That is, a BUY order is closed when we see a red dot on the chart and we can open an SELL order right away. And vice versa.

Stop-loss is set several points below the minimum of the signal candlestick when buying and several points above the signal candlestick when selling.

Trend indicator of Forex Reversal Diamond should be tested in demo trading before using it in real trading.Download RD:reversal_diamond06.06.2018