Buy Sell Magic Indicator
Platform: MT4 Type: Trend Last update: September 21, 2024The Buy Sell Magic Indicator for MT4 provides accurate trend-following signals. On the first glance, it strikes resamblance to parabolic sar, but additionall it places buy/sell arrows on trading charts. In this article we will analyse if it’s better, comparable or maybe worse. Let’s have a deeper look on anatomy and performance.
Buy sell magic indicator analysis
Construction
First element to notice is a dotted band that moves together with price and adjust itself to the ongoing fluctuations. You can consider it as a dynamic support and resistance zone. What’s more, it also plotts tops and bottoms that are connected with a dotted line. In essence, this is a popular zig zag with a little twist.
Trading signals
As you probably already noticed the main dotted line either floats below the candlesticks (blue) or hovers above them (red). This is corresponding to respectively bullish and bearish scenario. Entry occurs at switch of its placement and color – that specific moment is marked by buy/sell arrow as clean signal to go long or short. Stop loss can be trailed together with dots, securing existing gain. As for take profit, you can use 1:2+ risk-to-reward ratio or on arrival of the opposite signal.
The best part is that these signals are non repainting. Signals once placed stay forever, making it more reliable tool. What’s more, it can be applied to any currency pair and time frame, but obviously lower ones are charecterized by higher volatility, so please account that.
This is an example of a long trade.
Buy sell magic vs parabolic sar
As promised, we’ll analyse its performance versus well-known parabolic sar.
Their dot-based structure is very similar, however when combined together and placed within one chart, differences are becoming visible. See this GPY/JPY chart below where parabolic is green. When you pay attention, you can notice that it’s more hesistant and more often change alignment (bullish/bearish).
On the other hand, signals provided by buy sell magic are concrete, not sensitive for false short-term fluctuations. We can say they are simple more reliable.
Summary
This is a very good indicator, highly-rated in the forex traders community. We’ve proved that its signal are genuine and can be trusted. There is no need for onboarding additional technical analysis tools, since it’s pretty self-contained. Of course, feel free to try it in various combinations to enhance the effectivness even more.
