“Buy Sell Indicator” is a great trend following or reversal indicator.
I wanted to show you this because it has a really simple interface.
However, I can say that the entry opportunities it provides are fascinating.
The buy sell indicator, which looks like the one below, only works in your metatrader5 terminal.
If you do not like the appearance of the indicator, you can change the colors in the indicator settings section.
The Buy Sell indicator makes calculations according to the changes in the simple moving average with a period of 14 and the ATR indicator with a period of 60 and gives buy sell signals on the screen.
You can change these periods again in the indicator settings section. However, I recommend that you leave the default as 14 simple moving average and 60 ATR.
Where not to trade?
If buy and sell signals start to form almost on the same mirror screen, then we should understand that there is a range movement in the market. With this indicator, we cannot trade in the consolidation zone.
BUY Signal Example
As you can see in the example below, the points in the Sell direction have ended and the first square in the buy direction has formed on the chart.
We can also understand that the buy trend has started from the blue dots following this square.
We see a bullish candlestick emerging above the magenta Sell signal. This candlestick closes above the sell signal and strongly. Then we enter the trade directly in the Buy direction.
SELL Signal Example
As you can see in the example below, the buy points are over and the first square in the sell direction has formed on the chart.
We can also understand that the sell trend has started from the magenta colored (or we can directly call it purple) dots following this square.
We see a bearish candle closing under the blue buy signal. After this strong candle, we can enter the trade in the SELL direction.
In Which Timeframe Should We Use This Indicator?
I recommend using the Buy Sell indicator in the M15 and M30 timeframes. However, according to the backtests I have done in the H1 and above timeframes, it also provides entry opportunities that allow us to catch really big trends.
Therefore, I recommend you to do your own backtests. As you know, I tested all the indicators in xauusd.
Look at the example in the H4 timeframe below. I can say that it is an indispensable indicator especially for swing traders. Thanks to this indicator, you could have caught an incredible trade of +1280 pips.
I definitely recommend you to do your backtests.
Using the Buy Sell Indicator for Scalp Entries
I tested the Buy Sell Indicator in the M1 timeframe. And I noticed that it gives surprisingly good scalp entry opportunities.
Rather than swing entries, you have the advantage of entering trades with lower stop-loss. And you will have more than one entry opportunity during the day.
The example above is a Buy entry example from the M1 timeframe. The price creates a short-term range zone. Then the range zone is broken with bullish candles.
If you pay attention to the left candle traffic, there is very clean traffic. This means we can make high profits. We enter the trade in the buy direction.
We leave our stop loss under this structure. This M1 scalp entry you see gives us a very high risk:reward opportunity of 1:5.
I think I will backtest this indicator for a while. If you are going to trade this indicator with a scalp mentality and trading with xauusd, my score is 9 out of 10.
The example above is again a SELL scalp entry example from the M1 timeframe. If you make simple price action touches, you can see your entries better.
We enter the trade in the sell direction immediately after a minor uptrend is broken. We place our stop-loss on the last structure formed above before this minor trend was broken.
In this example I gave from xauusd, we get a great scalp entry TP of +65 pips with a 15 pip stop-loss.
Which broker should I trade with?
My broker recommendations will change depending on your country of citizenship. However, I only use 1 broker. And in my opinion, it is the best broker for xauusd.
I have no intention of turning this place into a billboard with 100+ brokers referring to it as “best forex brokers“. lol
If you sign up through the link below, you will not pay a commission per lot size, exclusive to the xauusd trading family. And your spreads will be very tight.
I just saved you thousands of dollars in the long run. Thank me later.
You should open an STP account. You can try by trading on a demo account.
And finally, I aggressively grow your small forex accounts using my own system. I scale your balance of $500 to $1500-$5000 in a short time. I suggest you check it out here.
See you in another premium strategy-indicator review article.