N Bar Reversal Detector Indicator for MT5: A Comprehensive Guide
Introduction
In fast-moving markets, spotting potential trend reversals early can be the difference between profit and loss. The N Bar Reversal Detector for MetaTrader 5 (MT5) is a versatile tool that analyzes recent price action to highlight key turning points. This guide will walk you through its core functions, setup, practical applications, and best practices.
What Is the N Bar Reversal Detector?
The N Bar Reversal Detector is a price‑action indicator that:
-
Analyzes a user‑defined number of candlesticks (the “N” bars)
-
Identifies bullish and bearish reversal patterns
-
Displays clear visual cues—such as arrows, dots, or lines—directly on your MT5 chart
Unlike momentum‑based tools (e.g., RSI or MACD), it focuses exclusively on candlestick patterns to filter out noise and pinpoint genuine turning points.
Key Features
-
Adjustable Bar Count
Choose any N‑value (e.g., 3, 5, 10) to match your preferred trading horizon—from scalping to swing trading. -
Visual & Audio Alerts
Configure on‑chart symbols, pop‑ups, sound files, and even email/push notifications. -
Multi‑Timeframe Compatibility
Works seamlessly on charts from M1 up to D1 (and beyond). -
MT5 Integration
Can be combined with Expert Advisors and other indicators (e.g., Bollinger Bands, moving averages) to build robust systems. -
User‑Friendly Interface
Simple parameter fields—no programming skills required.
How It Works
-
Price Action Analysis
The indicator reviews the last N bars for:-
Higher highs followed by a bearish candle (bearish reversal)
-
Lower lows followed by a bullish candle (bullish reversal)
-
-
Signal Generation
When it detects a qualifying pattern:-
Plots an up arrow for a bullish reversal
-
Plots a down arrow for a bearish reversal
-
-
Alert Trigger
Sends configured notifications the moment a signal appears.
Installation & Configuration
-
Download & Install
-
Obtain the
.mq5or.ex5file from a trusted source. -
Copy it to File > Open Data Folder > MQL5 > Indicators.
-
Restart MT5.
-
-
Attach to Chart
-
Open Navigator → Indicators
-
Drag “N Bar Reversal Detector” onto your chosen chart.
-
-
Configure Parameters
-
N (Bar Count): Number of candles to analyze.
-
Signal Type: Arrow, line, or dot.
-
Alerts: Enable/disable pop‑ups, sound, email, push.
-
Visuals: Customize colors and sizes for bullish/bearish markers.
-
-
Demo Testing
-
Run on a demo account across multiple assets and timeframes.
-
Observe how it behaves in trending vs. ranging markets.
-
Practical Applications
-
Trend‑Reversal Entries
Enter at the first sign of a new trend after exhaustion. -
Signal Confirmation
Combine with:-
Support/resistance zones
-
RSI/Stochastic overbought‑oversold levels
-
Moving‑average crossovers
-
-
Scalping
Use smaller N (2–3) on M5 or M15 charts for quick, intraday reversals. -
Swing Trading
Use larger N (5–10) on H4 or D1 charts to catch multi‑day moves.
Advantages & Limitations
Advantages
-
Straightforward and intuitive
-
Customizable for any market or timeframe
-
Proactive alerts keep you on top of reversals
Limitations
-
May generate false signals in choppy markets
-
Slight lag inherent to candlestick‑based logic
-
Performance can vary by asset class
Mitigation Tips
-
Always backtest on historical data.
-
Use proper risk management (e.g., stop‑loss, position sizing).
-
Avoid trading solely on signals—consider broader market context.
Best Practices
-
Backtest Thoroughly
Leverage MT5’s Strategy Tester to find the optimal N setting. -
Optimize per Asset
Different instruments (forex, stocks, commodities) may require different N values. -
Risk Control
Never risk more than 1–2% of your account on a single trade. -
Stay Aware
Monitor economic calendars and avoid high‑impact news events.
Example Strategy
Asset: EUR/USD on H1
Settings:
-
N = 5
-
Signal = Arrows
-
Alerts = Enabled
Entry:
-
Wait for a bullish arrow after a downtrend
-
Confirm with RSI < 30 or price bouncing off a support level
Exit:
-
Target next resistance or a 2:1 reward‑to‑risk ratio
-
Stop‑loss below the recent swing low
Conclusion
The N Bar Reversal Detector for MT5 is a powerful yet user‑friendly way to identify potential market turns. By adjusting its core settings, combining it with complementary tools, and adhering to disciplined risk management, you can enhance your entries and exits across multiple markets and timeframes.
Got questions? Shoot us a message on WhatsApp or join our Telegram group. We’re quick to respond, usually within a few hours.
