Buy Sell Pressure Indicator

Buy Sell Pressure Indicator

Buy Sell Pressure is a super momentum indicator designed for Forex and Stock trading on MT5. Determines bullish/bearish trends and OB/OS price conditions.

Buy Sell Pressure is one of the best technical indicators designed to analyze market momentum on MT5 charts.

It generates overbought/oversold signals in real time and indicates the exact buy/sell positions by displaying arrows in the oscillator window. Ease of use and clear trading rules suggest that the indicator is well suited for beginners.

Additionally, the Buy Sell Pressure indicator is ideal for analyzing MTF charts as it fits all MetaTrader timeframes. Ultimately, this works for scalpers and day traders who are looking for trend-following trading signals with a higher probability of success.

In this guide, you will learn how to identify profitable Forex and stock trading opportunities using the Buy Sell Pressure indicator in MT5.

How to apply Buy Sell Pressure Indicator for identifying momentum signals in MT5

The indicator applies a signal line showing the indicator value that defines overbought/oversold conditions. A value around 50 signals that the market is overbought. Conversely, it falls to -50, indicating that the price is oversold. If you find the rope curling around the 0.00 level, consider the market to be in a sideways or neutral trend position.

In the oscillator window you will find two more horizontal lines drawn at the +25/-25 levels. These lines indicate the general state of the price trend. For example, a signal curve rising above 25 signals a stable bullish trend. Therefore, you may consider holding a long position until the indicator value falls below 25 or reaches an overbought condition at 50.

Buy Sell Pressure also anticipates potential areas of price fluctuations using OB/OS signals. For example, a -50 indicator during a downtrend in the market suggests that the price is oversold. Moreover, a blue arrow near the oversold line indicates that the price is about to make a bullish reversal.

Look for bearish reversal conditions for sell setups, especially in overbought market conditions. A signal line bouncing off the 50 mark with a red arrow is ideal for opening a short position. If you have a sell order, you can exit the position if the signal line rises above the 25 level. Alternatively, you can wait until the indicator value reaches -50, which indicates the market is oversold.

When the market enters a neutral trend state, the signal curve rotates around the zero line. We will stop making new entries and wait for further confirmation of the trend in such conditions.

Conclusion
Buying and selling pressure is an ideal indicator to improve the effectiveness of your trend-based trading strategies. It filters trend signals generated by other indicators in the MT5 system. At the same time, it helps you track the price dynamics of your favorite currency pairs or Forex stocks. According to our review, this indicator works well together with moving averages, relative strength index (RSI) and stochastic oscillator.