BSP Indicator

BSP Indicator

A suitable BSP indicator for identifying the price directions. Ideal for determining when the market is bearish or bullish.

The BSP (buying selling pressure) indicator is a technical tool that helps measure the buying pressure and selling pressure. The selling pressure is determined by comparing the buy volume over the total volume, while the selling pressure compares the selling volume over the total volume.

Essentially, the indicator shows the market pressures. As a trader, this helps you determine whether you should go short or long. You should avoid going against the market pressure.

The indicator is suitable for Multi-time frame analysis and suits all time frames on the MetaTrader. The indicator generally works well for all types of traders, from scalpers to long-term traders. You can, however, use it with other indicators.

How To Use the BSP Indicator
The indicator shows the price directions and measures the momentum of the market. When the buying pressure increases, the indicator rises, but the indicator moves downwards when the selling pressure increases. It shows when the market is in a downtrend or uptrend.

Therefore, you will want to enter a long position when the indicator rises and a short position when it falls.

Buy Signal
Buy when the BSP indicator is rising, indicating rising buying pressure in the market. . Exit when the indicators start to fall.

Sell Signal
Sell when the BSP indicator is falling, indicating the selling pressure in the market is increasing. Exit when the BSP indicators start rising.

Trading Example

The price chart shows the BSP indicator in a four-hour time frame. During a downtrend momentum, the indicator moves downward. When the indicator hits the highest levels, it shows the momentum in that timeframe has peaked. For instance, during a highly bullish market, the indicator hits the chart’s peak.

Bullish Signal
When the market momentum rises spontaneously, the indicator also rises with the same momentum. During the rally, it shows the buying pressure is increasing and matches the rising indicator.

Bearish Signal
The indicator also falls instantly when the price momentum falls in that time frame. During a downward pullback, the selling pressure increases, and the indicator heads downwards.

When the market is ranging, the indicator line stagnates and moves sideways. It is an excellent tool for showing the market trend and momentum within a specific timeframe.

Conclusion
The buying-selling pressure indicator is ideal for showing the market’s selling or buying pressure. Essentially, you will want a short position when market selling pressure is high. Conversely, you want to enter a long position when the market pressure is bullish.