Buy Sell Pressure Indicator MT5
Platform: MT5 Type: Oscillator Last update: February 19, 2025The Buy Sell Pressure Indicator for MT5 is designed to measure momentum by analyzing the balance between buying and selling pressure in the market. Don’t be fooled by its basic looks in the first impression – this is much more than just another oscillator. In fact, it provides really valuable information and actionable insights.
Example chart:
How to use the buy sell pressure indicator for mt5?
After activation of the indicator, we advise to change the default settings. Namely, let’s change the pressure filter to both pressures. In the result, it will display two seperte lines corresponding to these two forces, which is obviously much better approach then a default singular line readings that can be a little ambigous.
Another recommendation is changing the smoothing period value to 12, but feel free to test other values as well. Thanks to this, the trends are less interlacing.
Once everything is in place, you should see two lines – a green one and a red one. They reflect buy and sell pressure respectively.
Buy sell trading signals interpretation
- Bullish signal – occurs when green line shows a continuous rise in buying pressure. This suggests the beginning or continuation of an uptrend. Traders should consider long trades only.
- Bearish signal – converesely, happens when red line highlights an consistent increase in selling pressure or a decline in buying pressure. Traders should take advantage of short trade opportunities with this setup.
Typically, an early entry point is after an crossover of the signal lines. It’s smart to combine this tool with other forex indicators for even better performance (e.g. trend indicators like moving averages).
The chart belows shows a clean scenario of dominating buy pressure.
Can we use overbought and oversold levels?
Since the indicator scale is dynamic, there is no point putting fixed and predefined oversold and overbought levels. They depend a lot on the fluctuaction dynamics and asset characterictics. In other words they are relative.
Bottom line
Knowing who, buyers or sellers, are driving the market is one of the most crucial information for successful trading and buy sell pressure indicator for metatrader 5 provides such data. What’s more, this is a perfect candidate to use in conjunction with various technical analysis indicators in order to confirm ideas.
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