Enough to correctly find the end and beginning of the trend, as well as to accurately determine the future direction of the price. For these purposes, traders use various tools, ranging from classical support/resistance levels to more complex and remunerative indicators. One of these algorithms is the Laser Reversal Indicator. This tool was developed specifically to identify trend reversal points. The laser instrument is named because its signal almost always hits the target.
According to the developers, the indicator has a clever algorithm that combines price action and market timing strategies. The indicator is not repainted and does not lag. The laser reversal gives signals in the form of directional arrows “up” and “down”. In addition to the indicator, the tool displays blue and red boxes on the chart, which show the range of price movements over a period of time.
A blue box appears when a buy signal is received
A red box is formed when a sell signal appears
The algorithm gives signals at the moment when the trend changes. If a downtrend changes to an uptrend, a blue arrow and a blue box will appear on the chart. When a bullish trend changes to a bearish trend, the chart will show a red box and a red arrow.
The indicator is based on the Relative Strength Index (RSI) algorithm, so the main input parameter that affects the quality of the signal will be the “period” term. It is responsible for the number of bars to be analyzed when looking for a signal. The higher the period value, the less frequent the signal will be. At the same time, the quality of the indicators will be significantly higher, since they will take more data into account. With shorter periods, the number of signals will increase, but their quality will deteriorate.
You can also make the necessary adjustments to the visual design of the signals, activate/deactivate the alerts function and pop-up alert windows. After setting the indicator, you can start trading.