2 Bar Reversal Indicator MT4 – Non-Repaint Reversal Signals

2 Bar Reversal Indicator V1.0 MT4 – Clean, Non-Repaint Reversal Signals for Faster Entries

Tired of seeing a perfect reversal only after it’s gone? The 2 Bar Reversal Indicator V1.0 for MT4 is built to spot that classic two-candle reversal pattern right as it forms—without repainting and without guesswork. It’s a pure price-action tool: no lagging oscillators, no complicated dashboards, just a crisp visual cue for potential turning points and a suggested buy/sell idea so you can react before the move runs away. If you love trading clean charts and actionable signals, this one fits like a glove… coz it focuses on the most timeless edge in markets: how candles actually print.

What Is the 2-Bar Reversal Pattern?

The two-bar reversal is a simple yet powerful formation that hints at a momentum shift. In a down move, you’ll get a bearish candle followed by a strong bullish candle that “engulfs” or decisively overcomes prior bearish pressure. In an up move, the opposite happens: a strong bearish bar follows a bullish one, taking control. The 2 Bar Reversal Indicator scans each new candle and flags these situations, placing an arrow or label on your chart (and an optional alert) when conditions are met. Since it’s non-repaint, once the signal appears at bar close, it stays; the tool won’t “magically” remove or move signals later.

Why Traders Like It

It’s price action first (easy to understand).
Signals are objective and rules-based.
It’s versatile across instruments and timeframes.
You can combine it with your favorite filters.

How It Works (Under the Hood)

At a high level, the indicator:

Observes the most recent two completed candles (call them Bar-1 and Bar-2).
Checks if Bar-2 shows a decisive shift compared to Bar-1 (body strength, close versus open, and where the wick sits).
Optionally checks trend or volatility filters (you can toggle these in settings).
If all criteria line up, it prints a buy or sell marker and can trigger alerts.

Because it evaluates only closed candles, the signal is final at bar close—this is what makes it non-repaint. You won’t get “fake hindsight perfection” here.

Key Features You’ll Actually Use

• Non-repaint logic – signals lock in at bar close
• Clean arrows/labels – instant visual cues for buy/sell setups
• Multi-timeframe friendly – works from M5 to H4 (and even D1 for swing traders)
• Optional filters – trend bias, minimum body size, ATR filter to avoid noisy chop
• Alert options – on-screen pop-ups, and (if you enable in MT4) email/push notifications
• Parameter control – tweak sensitivity, wick/body rules, minimum candle range
• Minimal chart clutter – choose arrow size, color, and placement
• Pair-agnostic – majors, minors, gold (XAUUSD), indices, even crypto CFDs on MT4
• Backtest-friendly – visual mode testing in Strategy Tester for rule refinement
• Lightweight – designed to be fast and smooth on most setups

Suggested Trade Rules (So You’re Not Guessing)

These are examples, not financial advice—adapt to your style.

For Long Setups

Signal: Bullish 2-bar reversal prints a buy arrow.
Context filter (optional): Price above 50 EMA or 200 EMA on your chosen timeframe; or use an HTF 50 EMA for bias.
Entry: Market buy on the open of the next bar, or place a buy stop a few points above the signal bar’s high.
Stop-loss: Below the signal bar’s low (or use ATR(14) × 1.5).
Take-profit: 1:1.5 or 1:2 RR; or trail behind a short EMA/ATR.

For Short Setups

Signal: Bearish 2-bar reversal prints a sell arrow.
Context filter (optional): Price below 50 EMA; or HTF trend down.
Entry: Market sell next bar or sell stop below signal bar’s low.
Stop-loss: Above the signal bar’s high (or ATR-based).
Take-profit: 1:1.5 or 1:2 RR; or trail with an EMA/ATR.

Tip: On lower timeframes like M5/M15, consider using an ATR filter in the settings to avoid micro-moves during ultra-low volatility sessions.

Best Timeframes & Markets

Intraday: M5/M15 for EURUSD, GBPUSD, USDJPY, XAUUSD during London/NY overlap.
Swing: H1/H4 (even Daily) when you want fewer, cleaner signals with larger R multiples.
Volatile assets: On gold or indices, widen stops (ATR helps) and be strict with RR.

Settings You Can Tweak (Recommended Defaults)

Min Candle Body (%): 35–40% of total range (filters tiny, indecisive bars)
Engulf Strictness: Medium (Bar-2 close should exceed Bar-1 open in the reversal direction)
ATR Filter: On, ATR(14) min range ~ 0.5× instrument’s typical bar size
Trend Filter: On (use 50 EMA of the current timeframe)
Alerts: Popup (on); Email/Push (optional, requires MT4 terminal settings)
Arrows: Size medium; colors green for buys, red for sells
Shift Labels: Small offset so markers don’t overlap candle wicks

These defaults balance sensitivity and quality. If you’re getting too many signals, raise Min Candle Body or enable a stronger engulf rule. If you’re getting too few, loosen strictness slightly.

Entry Timing & Trade Management (A Few Pro Tips)

Wait for bar close: Don’t pre-empt the signal; the non-repaint logic works at close.
Confirm with structure: Look for nearby support/resistance or round numbers; avoid buying into obvious resistance and vice-versa.
Use session awareness: London and NY overlaps typically offer the best follow-through.
Stack confluences: 2-bar reversal + trend bias + level + ATR range = higher probability, generally.
Journal everything: Note time, pair, ATR, reason for entry. Small tweaks compound your edge.

Installation (Step-by-Step)

Download the indicator file (.ex4).
In MT4, go to File → Open Data Folder.
Open MQL4 → Indicators and paste the file.
Close and restart MT4 (or right-click Indicators in Navigator → Refresh).
Drag 2 Bar Reversal Indicator V1.0 onto your chart.
Open the Inputs tab to adjust filters, alerts, and styling.
Hit OK—you’ll see arrows/labels as new bars complete.

Backtesting & Optimization Ideas

Even tho it’s an indicator (not an EA), you can use Strategy Tester → Visual Mode to replay the market and capture screenshots of signals. Log results with your chosen rules:

Test multiple timeframes (M5, M15, H1).
Compare trades with/without the trend filter.
Check performance by session (Asia vs London vs NY).
Evaluate different RR targets (1:1.5, 1:2, partials).
Record MAE/MFE to refine stop/TP placement.

Over a few weeks of testing, you’ll see whether tighter filters help your style or whether a looser, trend-biased approach nets more opportunities.

Who Is It For?

Price-action purists who want objective reversal cues.
Newer traders looking for a clear pattern to anchor decisions.
Busy intraday traders who need quick, non-repainting prompts.
Swing traders who value fewer, higher-quality signals on H1/H4.

Limitations (Be Real About It)

No indicator is perfect; you’ll still get false starts—especially in choppy ranges.
Strong news spikes can ignore technicals (use a calendar).
Lower timeframes can over-signal during dead liquidity; filters help, but they won’t fix all noise.

Final Word

The 2 Bar Reversal Indicator V1.0 MT4 keeps things simple, visual, and dependable. You get clear, non-repainted markers for potential turning points with enough configurability to match your playbook. Pair it with trend bias, risk controls, and decent session timing—and it becomes a nifty little edge. Remember, your risk plan matters more than a single signal rule. Focus on execution quality, keep logs, and iterate. That’s how you turn a clean pattern into a repeatable process.