The major flaw of the Lucky indicator
The successful reversal indicator is different from many other trend reversal indicators. The reason is that this is a lagging indicator, so a trader is unlikely to be able to trade with it on reversal breakouts.
Many traders have become frustrated trying to use the indicator to detect the start of a reversal, and you can’t blame them for trying. If you backtest the indicator, you will find that bullish and bearish signals are right at the lowest or highest reversal points of major trend reversals. See an example in the image below. You will notice that the price will reverse as soon as the arrow appears.
However, when testing the indicator in a live market, you will find that bullish or bearish signals only appear after the market has completed a reversal. The reversal arrow appears on the chart only after the reversal is confirmed. This shows that the Lucky reversal indicator is lagging behind.
Strong side of the Lucky Reversal indicator
The main weakness of the Lucky indicator is its strength. Since it is late, it is almost impossible to catch reversals with it, but it can be used to confirm trades in an emerging trend. For example, you can trade an uptrend that occurs after the market has completed a reversal from a downtrend to an uptrend.
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