Buy Sell Indicator
This Buy Sell Indicator uses price action calculations to determine the bullish or bearish nature of the current market and then calculates if the price action is strong enough to give a signal. The indicator is fully adjustable so you can fine tune it to fit your specific trading style with Scalp Mode, Swing Mode, Long Swing Mode and candle trailing length. It also has an automatic trailing stop loss and take profit features that can be customized.
For price action identification, scalp mode looks at the candle body, candle wicks and size of the body and wicks and compares all of that to the previous candle to see if it is bullish or bearish . Swing mode will compare the current candle to the last 2 candles and long swing mode will compare the current candle to the last 10 candles. It’s looking for higher highs & lower lows, if the candle body is large or small and much more.
There are also filters that prevent signals from being given when the candle is small or has not made a higher high or lower low compared to the previous candle and multiple other filters to help hold positions longer. Once the price action direction has been confirmed, then the script looks at a massive amount of other calculations to determine if a signal should be given or not. These calculations are made up of all of my best indicators combined into a master signal generator as well as more new calculations from things I have learned over time and tested extensively that have not been made available to the public until now.
Price action as well as many other factors will all have to be confirming the direction before a signal can come in, but it reacts very quickly so it can give early signals at the first sign of reversal. Fine tune your settings to match your trading style from within the input settings and then look for potential reversal areas and take signals that appear in that reversal area for the highest probability of winning trades. I decided not to include any support or resistance or similar tools in order to keep the indicator lightweight and respond as fast as possible as well as update the candles as quickly as possible. This also lets you keep your charts clean and only use the support & resistance tools that you prefer since everyone has a different trading style.
Higher Timeframe Or Market Scanner
How To Use
You can find an in depth guide on how to use the Buy Sell Indicator here. We also put together a guide on different trading strategies you can use with the buy sell indicator here.
The candles will paint blue or orange according to the price action detected. This can be customized or turned on/off and will follow the price action according to the trade mode settings. Using these candle colors helps to get rid of anxiety when watching candles come in that are in the opposite direction of your trade. I highly recommend using this feature as it helps you control your emotions much better during trading.
The trade mode settings let you choose between Scalp Mode, Swing Mode and Long Swing mode. They all use the same price calculations, but each mode has its own filters to hold through ranging price action in a slightly different way. You can also adjust the candle trailing length to make it hold positions even longer. The candle trailing length will not let a signal come in until there is a higher high or lower low than the previous X number of candles from this setting.
Scalp mode will get you in and out of positions the earliest. Swing mode will hold signals longer by filtering out ranging price action. Long swing mode uses even more filtering to hold positions even longer than swing mode and let price range more without calling out every move. Each one of these modes will also be affected by the candle trailing length.
It should be noted that using swing mode and long swing mode or increasing the candle trailing length will make the signals not perform as well when price action is whipsawing up and down and also will not have as early of entries and exits as scalp mode due to the range breaks that are needed for a signal to be given. That being said, it will hold positions much longer when markets are trending and still have great entries and exits, so use the longer settings when markets are trending and then switch to scalp mode when the market is chopping around and moving sideways for best results.
There is an automatic stoploss feature as well. It calculates the average candle height and adds/subtracts that from the highest high or lowest low of the past X number of candles according to your Stoploss Candle Trail Length. Use a lower number for a tight trailing stoploss and increase the number for a more loose stoploss. You can also customize the color of the stoploss line and label or turn it off if you prefer. The stoploss will update on every candle for proper trailing but it will not switch to an opposing signal until the candle closes with a new signal.
There is an automatic take profit level generator as well that also uses the average candle height for its calculations. There are 3 settings that let you set the average candle size multiplier for each take profit level. The default settings are evenly spaced at 3, 6 and 9 times the average candle height from where the most recent signal locked in at candle close. Adjust these numbers to suit your preference. You can also customize the color of the take profit lines and label or turn it off if you prefer. The take profit levels will not change to an opposing signal until the opposing signal is confirmed on the candle close.
The default signals are green and red arrows. The color can be adjusted in the settings or you can turn the bull or bear signals on or off if you only want entry signals for the direction of the trend.
Volume Spike Support & Resistance
There are volume based auto support & resistance levels that are off by default, but can be turned on in the settings. It calculates the average volume over multiple periods and gets the average of that and then looks for volume spikes that were greater than the average, multiplied by the volume spike multiplier in the settings. If set to 3, then the volume spike will need to be 3 times or higher than the average volume bar for a level to show up. Increase or decrease this number to get more or less levels.
If volume is very low compared to normal, then a volume warning label will appear at the top of the chart letting you know that volume is very low and to trade with caution. I recommend not trading during those times though as price can whipsaw very easily.
There are also alerts that can be triggered for buy signals as well as sell signals. They are set to only send signals when the bar is confirmed so you won’t get alerts for signals that repaint while the candle is still open. You can use these alerts to send signals to your own trading bot if you choose to.
This buy sell indicator can be used on any market with price data such as stocks, crypto, forex and futures.
This buy sell indicator can be used on any timeframe.
We recommend pairing this Buy Sell Indicator with our Supply And Demand indicator so you can see exactly where price is going to reverse and then follow the reversal signals that come in at those levels. We also recommend using the Buy Sell Signal Scanner so you can check other timeframes and trade with the trend or use the scanner to look at other markets that move together or opposite of the ticker you are trading for extra confirmation of direction.
5/18/2023: Improved the signals using volume & reversal candles.
Made the signal arrows smaller.
Added yellow dots on signals that meet signal parameters but have characteristics that may not be ideal. Make sure to wait for confirming price action before following signals with a warning dot. These dots can be turned off in the input settings.
Added partially opaque signal arrows until the candle closes to help encourage waiting for confirmed signals on candle close. The color used for this can be changed within the input settings.
7/11/2023: Added price info for stoploss and take profit levels into the labels. This can be turned on or off in the settings.
Added ability to change the size of the signal arrows from small, medium and large. Change these to suit your preference in the settings.
8/10/2023: Improved signal parameters with the following: added inside bar parameters, candle size parameters & mintick parameters. These are all meant to help hold positions longer. They only affect scalp and swing mode.
Improved entries and exits with tweezer top parameters, gap up & gap down parameters and custom candle strength parameters.
Added confirmation signal arrows when a bullish/bearish candle is detected within 2 candles of a signal that had a caution dot, wait for confirming price action dot displayed. This extra signal is giving you confirmation that the original signal is valid and can be followed. This setting is off by default to keep the charts clean, so turn it on in the settings if you would like these on your chart.
Added X crosses above/below signals that get taken out on the very next candle with an opposing signal. These are meant to notify you right away to exit that previous position immediately since price has very quickly changed direction. These are on by default and can be turned off in the indicator settings tab.
Added the ability to adjust the signal sensitivity so the algo will hold positions longer or get in and out as fast as possible, depending on your settings chosen. This setting only affects scalp mode and swing mode. It is labeled as Candle Size Rejection Multiple within the indicator settings. The default is .1 and can go up to 3. The lower the number, the smaller the candle needs to be to allow a signal to come in. The higher the number, the larger the candle will need to be to allow a signal to come in. This helps hold positions longer when set to higher numbers, but can lead to unwanted missed signals if the candles aren’t big enough, so be aware of this when using higher rejection numbers. Setting this between .5 and 1.5 is the range where you will have positions hold longer than normal and still get timely signals.
Added alerts for when the stoploss gets hit or any of the take profit levels get hit.
8/25/2023: Fixed a bug affecting the candle trailing length on scalp, swing & long swing mode. Bug completely fixed and trailing lengths are working properly across all modes now.
Added a trailing stoploss mode that allows the user to turn on the trailing stoploss and then no other signals will be given until turned off. This allows you to wait for an entry signal, take position and then turn on the trailing stoploss mode so that it guides you until your trailing stop is hit. This helps reduce noise or unwanted signals and maximize the position you are currently in.
The trailing stop is turned off by default. You will need to wait for a confirmed signal in the direction you want to trade and then turn the trailing stop mode on for it to work. It will engage the trailing stop and show a line as well as price and trade direction on the trailing stop label so you always know where your stop should be.
The algo will not give another signal until the trailing stop mode is turned off, so make sure to turn it off once your stoploss has been hit or you have exited that position. If you want the stoploss to update to a more recent signal or it won’t update after switching on and off, it’s due to a caching issue with Tradingview and you just need to save your chart layout and refresh your browser to get the stoploss to update to the most recent signal.
The trailing stop mode parameters are directly affected by the normal stoploss parameters so make sure to adjust those to your preferences before using the trailing stop. You can adjust the Stoploss Candle Trail Length which uses the number of candles to lookback for a highest high or lowest low and then adds an average size candle length to that number to get the stoploss. This is a custom version of an ATR stoploss. You can also increase the number of average size candles that are added to the trailing stop by adjusting the Stoploss Avg Candle Multiple.
I recommend playing with this setting a bit before implementing it into your trades so you can get your settings adjusted perfectly before using it in a trade.
Try using scalp mode for early entries and then turning on the trailing stop once the entry signal is confirmed. Then hold your position until your trailing stop is hit to maximize your profits.
The trailing stoploss will also hold and continue to trail until it is turned off if price action continues in the same direction of the signal even after the stoploss has been hit. This is to guide those of you that are not manually updating your stop on every new update and are still holding positions even though the stop was hit on the chart.
If Trailing Stop Mode is on and your trailing stop gets hit, the stoploss label and line will turn orange to notify you. You can adjust this color in the settings to suit your preference.
Added an alert option for when the trailing stoploss is updated. Make sure to turn this alert to trigger once per bar. There is also a previous alert option for when the stoploss gets hit that can also be turned on when using alerts to update you about your trailing stop getting hit. You should set this to trigger only once.
11/8/2023: Changed default settings. Fixed small bug with candle trailing length on some parameters. Edited some reversal pattern rules. Edited some general signal calculations and cleaned up some code. Made stoploss and take profit candle multiples editable by .1 for fine tuning.
Added Super Swing Mode. Super Swing Mode is a new type of signal calculation that is designed to hold through chop for longer swings in price while still giving early entries. This mode is great for anyone that is swing trading or looking for long swings on smaller timeframes such as the 1-5 minute charts. Super swing mode is not affected by the candle trailing length parameters or the candle size rejection parameters, so you can just turn it to this mode and you are ready to go.
1/16/2024: Major overhaul of Super Swing Mode signal parameters. It holds through chop better, holds positions longer and still gives early entries.
Updated candle calculations which has improved signal generation for all trade modes.