As the name suggests, the Forex Laser Reversal indicator points to the exact reversal area on the chart in two boxes. The tool helps new traders to find trading opportunities without much work but does require some decision making on behalf of the user and additional market analysis for confirmation.
What is the Forex Laser Reversal indicator?
Forex Laser Reversal indicator is a tool for trend identification. It creates two boxes and reveals whether this is a selling or buying opportunity.
The indicator uses fast and slow EMAs and RSI to filter the trends. You can choose the periods for RSI and EMAs in the settings. If you are an aggressive trader or want a quick entry, you can reduce the EMA periods.
However, the primary reversal indication comes from the divergence pointed by two boxes drawn on the chart with an arrow pointing in the potential reversal direction. You can increase or decrease the box width as well.
The best part is that the indicator comes with a popup alert. So, you may not miss the opportunities that come your way.
Forex Laser Reversal indicator strategy
The indicator is quite simple to use. All you need is to find the red or blue boxes on the chart and then take your position accordingly.
The indicator can be used for both entry and exit of your positions. You can apply it to any financial instrument. If you are a scalper, you can use the tool during earlier London sessions as the markets are volatile.
Since the tool uses EMAs and RSI, the trade signals could lag. You may miss the earlier entry into the trend. Moreover, there could be false signals as well. However, the tool provides you an edge in finding opportunities in one glance by simply switching the timeframes.
Let’s take a look at the buy setup:
- Wait for the blue boxes to appear on the chart.
- You could enter the long position if the price breaks the box.
- You could place the stop-loss slightly below the low of the box.
- You could place the take profit around the next key resistance. Alternatively, you could exit when a sell signal appears on the chart.
Let’s take a look at the sell setup:
- Wait for the red boxes to appear on the chart.
- You could enter the short position if the price breaks the box.
- You could place the stop-loss slightly above the high of the box.
- You could place the take profit around the next key support. Alternatively, you could exit when a buy signal appears on the chart.
Forex Laser Reversal indicator pros and cons
- The indicator is automated and requires no work.
- The tool uses multiple trend filters to help try and increase winning probability.
- The tool settings can be altered to fit according to trading style.
- The indicator is lagging.
- The signal frequency is quite low.
- The indicator may not perform well in ranging markets.
From the above discussion, you may have realized that the Forex Laser Reversal indicator is worth a try as it provides a semi-automated signal for trading. However, the signal can lag, or you may even encounter false signals. Moreover, it would help if you patiently waited for the box to break out to avoid false signals. Finally, you should not ignore the proper risk management with each position; otherwise, you are prone to get unexpected losses.
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