Buy Sell Indicator for MT5
One of the concepts traders use when identifying trends and trend reversals is to use the Average True Range (ATR). A market trend is said to have reversed direction when the price moves against the previous trend by more than a multiple of ATR. The Buy Sell indicator is based on this concept.
What is Buy and Sell Indicator?
The Buy and Sell indicator is a special technical indicator which is a trend following indicator. It draws points that move above and below the price action to indicate the direction of the trend. It plots the dots below price action when it detects that the market is in an uptrend and above price action when it detects that the market is in a downtrend.
How do buy and sell indicators work?
The Buy Sell indicator uses a moving average line and the Average True Range (ATR) indicator to identify the direction of the trend. It uses a moving average line as a starting point on which it will base where it will draw points. The points are drawn at a distance from the moving average line based on the ATR. The point moves up or down as soon as the candle closes behind the point. This will signal that the market will reverse.
How to use Buy Sell Indicator for MT5
This indicator has four variables that can be changed settings.
MA_Period refers to the number of periods on which the moving average line is based.
“Smoothing method” refers to the type of moving average line used.
“Price” refers to the point on the bar from which the price data originates.
ATR_Period refers to the number of periods used on the ATR.
How the buy sell indicator works
The Buy Sell indicator can be used as a trend reversal signal indicator based on its points moving above or below the price movement. However, it is best used as a trend direction filter where traders will only identify the trend direction using the buy sell indicator and trade only in the indicated trend direction.
Buy trade settings
When to enter?
Identify a market that is in an uptrend using the Buy and Sell Indicator points. Wait for the price to recede near the point. Open a buy order as soon as the price action shows signs that the uptrend is about to resume. Place a stop loss at the support below the entry candle.