SM Buy Sell Pressure Indicator

SM Buy Sell Pressure Indicator

SM Buy Sell Pressure is a super momentum indicator built for forex & stocks trading in MT4. Determines bullish/bearish trends & OB/OS conditions of the price

The SM Buy Sell Pressure represents one of the best technical indicators developed for analyzing market momentums on MT4 charts.

It generates real-time overbought/oversold signals and points precise buy/sell positions by plotting arrows in its oscillator window. Its simplicity of use and easy-to-follow trading rules suggest the indicator is a good fit for beginners.

Furthermore, the SM Buy Sell Pressure is ideal for MTF chart analysis because it suits all MetaTrader timeframes. Eventually, it works for scalpers and intraday traders looking for trend-following trading signals with higher success probabilities.

In this guide, you’ll learn how to identify profitable forex and stock trading opportunities by using the SM Buy Sell Pressure indicator in MT4.

How to apply SM Buy Sell Pressure Indicator for identifying momentum signals in MT4

The indicator applies a signal line showing the indicator’s value that determines overbought/oversold conditions. The value near 50 signals an overbought market. Conversely, it drops to -50, suggesting the price has got oversold. If you find the rope coiling around the 0.00 level, consider the market is in a sidelined or neutral trend position.

You’ll find two more horizontal lines drawn at +25/-25 levels in the oscillator window. These lines indicate the overall trend condition of the price. For instance, the signal curve rising above 25 signals a solid bullish trend. Consequently, you may consider holding a long position until the indicator value drops below 25 or hits the overbought condition at 50.

SM Buy Sell Pressure also anticipates the potential price swing areas by using the OB/OS signals. For example, the indicator at -50 during a downtrend market suggests the price is in an oversold condition. Moreover, a blue arrow near the oversold line indicates the price intends a bullish reversal.

Look for a bearish reversal condition for sell setups, especially in an overbought market condition. The signal line rebounding from 50 with a red arrow is ideal for going short. Once you’re on a sell order, you may exit the entry if the signal line moves above the 25-level. Alternatively, you can wait until the indicator value hits -50, suggesting an oversold market.

When the market enters a neutral trend condition, the signal curve rots around the zero-line. We’ll stop making new entries and wait for further trend confirmations in such a condition.

Conclusion
The SM Buy Sell Pressure is an ideal indicator for boosting the performance of your trend-based trading strategies. It filters the trend signals generated by other indicators of the MT4 system. At the same time, it helps you track the price momentum of your favorite forex currency pairs or stocks. According to our review, this indicator works well alongside moving averages, relative strength index (RSI), and the stochastic oscillator.