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Reliable Entries and Exits with the Arrow and Curves MT4 Indicator

5 min read

The Arrows and Curves MT4 indicator is rather unique in the way the buy/sell arrows are plotted. A quick visual backtest using this indicator suggests a relatively high probability of capturing trend reversals. Working off a moving price channel, the arrows and curves indicator could be mistaken for a Bollinger Band or even a moving average envelopes indicator. However, that is not the case. The arrows and curves indicator for MT4 works off calculating the price channel based on a unique method. The buy and sell signals are triggered when prices close at or outside the price channel’s upper and lower bands.

Arrows and Curves MT4 Indicator Settings

The Arrows and Curves MT4 Indicator has the following values by default.

Arrows and Curves MT4 Indicator Settings

Once the indicator is applied to the chart, you will see the price channels including the buy and sell arrows being displayed. The arrows and curves indicator can be used on any time frames, although it is not advisable to use on smaller time frames below the 15-minute chart. Likewise, using the arrows and curves indicator on a timeframe above H4 is also not recommended.

This is how the Arrow and Curves MT4 Indicator should look like on your MT4

Trading with the Arrows and Curves MT4 Indicator

The Arrows and Curves MT4 Indicator can be used to buy or sell when the arrow appears. The most basic way to trade is to sell on a red arrow or buy on a blue arrow. Simply hold on to the position until the next opposite signal appears. Another way to trade with the arrows and curves indicator is to trade with a fixed stop loss and a 1:1 or a 1:2 risk reward set up.

No matter which approach you use for trading with the arrows and curves indicator, it is clear that during ranging markets, there are many signals that result in getting stopped out.

Trend Trading and Range Trading with the Arrow and Curves MT4 Indicator.png

The above chart shows the few false signals and ones that would have resulted in losing trades, regardless of what approach you would have used. However, when the markets are in a strong trend, it is easy to see the big profits that the arrows and curves indicators can signal well ahead of time.

It is therefore obvious that the arrows and curves indicator is best used alongside other indicators. Probably one of the best ways to trade with the arrows and curves indicators is to make use of divergence trading.

The next chart below shows the bearish and bullish divergences that were formed. Without the use of the arrows and curves buy/sell signals it would have been a bit of a tedious trade set up to trade. However, with the additional confirmation from the arrows and curves indicator, you can see how these set ups worked out to be big winners.

Using Divergence with the Arrow and Curve MT4 Indicator for Better Reliability

In both the above examples, taking a sell position after the arrow is formed with stops at the recent high or taking a long position after the buy signal is triggered with stops at the lows would have resulted in very profitable trades. These set ups would have also kept the trader out of any ranging markets as well.

To summarize, arrows and curves trading strategy using divergence:

  1. Wait for a bullish or a bearish divergence to form
  2. Wait for a buy or a sell signal to be triggered by the arrows and curves indicator
  3. Long or short after the signal is confirmed with stops at the recent high or recent low
  4. Exit at a 1:3 risk/reward set up

Arrows and Curves MT4 Indicator Buy Signal Example

  1. Bullish divergence is spotted
  2. After the Arrows and Curves indicator gives a buy arrow, long position is taken on the bar close with stops at the recent swing low
  3. Target 1 is set to 1:1 Risk/Reward set up
  4. Once price reaches target 1, move trade to breakeven + a few pips and leave the trade to reach target 2 set up at a 1:2 Risk/Reward set up
Bullish Divergence with the Arrow and Curve MT4 Indicator

Arrows and Curves MT4 Indicator Sell Signal Example

  1. Bearish divergence is spotted
  2. After the Arrows and Curves indicator gives a sell arrow, short position is taken on the bar close with stops at the recent swing high
  3. Target 1 is set to 1:1 Risk/Reward set up
  4. Once price reaches target 1, move trade to breakeven + a few pips and leave the trade to reach target 2 set up at a 1:2 Risk/Reward set up
Arrow and Curves MT4 Indicator – Time to Enter into Short position with Bearish Divergence Detected

Recommended Time Frames for the Arrow and Curves MT4 Indicator 

Technically speaking, you can use this MT4 indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.


Arrow and Curves MT4 Indicator Download

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