How To Use The Buy Sell Indicator
To set up your Buy Sell Signals, go to your chart and select the indicators tab if you are on desktop. On mobile, click the plus icon and then click indicators. From there, you will want to click on the Invite-only scripts tab and you should see the Buy Sell Indicator in there if your account has already been given access. Click on the indicator name to add it to your chart and accept the disclaimers that pop up.
The next thing you will want to do since this indicator has custom candle coloring, is click on the gear icon on the top right on desktop, on mobile click the 3 dots and then click chart settings. From there, in the symbol tab, turn off body, borders and wick to make sure the normal candle coloring doesn’t cover up the indicator candle coloring.
If you aren’t sure which type of strategy you should use with this indicator, check out this article covering buy sell indicator trading strategies.
Tips For The Best Signals
For best performance and the earliest, best signals, you need to look at the charts for the exchange with the smoothest candles and the most trader participation. These charts will typically have better candle sticks for the algorithm to read properly and will give you much better results. For forex use the FXCM, Forex.com or Pepperstone charts, for stocks use NASDAQ, NYSE or ARCA and for crypto use Coinbase charts. These all typically have the smoothest candles and will give you the best signals.
Also, if you are using the 1 minute timeframe, make sure to try out super swing mode and long swing mode. For 5 minute timeframe and above, you should use scalp mode or super swing mode.
Super Swing Mode
Super Swing Mode is the newest addition to the Buy Sell Indicator and runs on a different algorithm than the other modes. This mode holds position really well, while still giving early entries. If you are looking for the most reliable signals, this mode will give you the safest entries and hold the position as long as possible.
The candle trailing length and average candle size parameters will not affect Super Swing Mode, so no need to worry about changing the settings, just switch to Super Swing Mode and you are ready to go.
Scalp mode is going to give you the earliest entries and exits. It is designed to catch every move and spot the tops and bottoms as soon as possible. Because of this, it will have more signals than the other modes and some of the signals may not be great. This is the downside of scalp mode, you get early entries, but more signals than necessary. It has a price action filter that prevents a direction change signal until the current candle has surpassed the last candle’s high/low. From there it calculates whether to give a signal or not using a large amount of parameters.
If you want the earliest entries AND want to hold the position as long as possible, then try using scalp mode with the trailing stop loss exit feature or using a short term moving average to help hold the position longer. Unless you are scalping to the next support/resistance level, then the trailing stop loss feature is an excellent way to maximize your wins.
Swing mode is very similar to scalp mode, except it has a price action filter that will not allow a direction change until the current candle has surpassed the previous 2 candles high/low. It also has other parameters that affect the price action filter that are slightly different than scalp mode to help it perform it’s best. Once the current candle has surpassed the previous 2 candles, then it will decide on whether to give a signal or not based on a lot of parameters. The entries and exits you get from this mode will not be as early as scalp mode, but there will be less false signals and it will hold positions longer. Due to the extra candle it needs to surpass to give signals, in some situations, the signals will come in late, for instance when there is a large candle and then multiple candles that do not surpass that large candle. In these types of situations, it won’t always give a timely signal due to the price action filter. Handle these situations at your own discretion.
I recommend using swing mode with the trailing stop loss exit feature to help you hold positions as long as possible.
Long Swing Mode
Long swing mode has a price action filter like the other modes however, it’s filter needs the current candle to surpass the previous 10 candles before it can accept a direction change. This can help hold positions for a very long time, but will not work well when the market is ranging sideways. Because of the price action filter needing to surpass 10 candles, it can give late entries and exits in ranging markets and will not perform well. When markets are ranging, I recommend using scalp mode instead and playing small scalps off support and resistance levels. Long swing mode should be reserved for trending markets and breakout plays to help you hold the position as long as possible.
Candle Trailing Length For Longer Swings
The default candle trailing length is set to 2 which means a signal can only be given if the current candle’s close is higher or lower than the previous 2 candles. If you increase this number, it will increase the amount of candles that the current candle has to surpass to be able to give a signal. This is useful if you like a certain trade mode, but want it to hold positions longer or wait for it to become more of a break of the previous trend.
Increasing this setting to 5 with the indicator set to scalp mode is a great way to get rid of some of the noise and hold positions longer. Just remember, in some situations this setting will have a negative affect, especially ranging and sideways markets so use caution in those situations.
It is important to note that in some situations, the candle trailing length will be ignored if other reversal patterns are detected to help catch the reversal early.
This setting does not affect Super Swing Mode.
Candle Size Rejection Multiple
This setting calculates the average size of a candle and then ensures that no signal is given unless the current candle body is equal to or greater in size than an average candle multiplied by this value. So the default setting is .1 which means that any normal signal can come thru, as long as it is 1/10th the size of an average candle. This is for scalp mode so it gets the earliest entries. If you want a little more reliable signals, try increasing this number to 1. That will ensure that signals are only given when the candle size is large enough compared to the average candle. This helps increase accuracy of the signals, but may prevent it from catching early entries if the candles are not big enough. Play with this setting and choose whatever you like the best for your style of trading.
This setting does not affect Super Swing Mode.
By default, there is a trailing stop loss that is automatically generated and updated throughout the course of each trade. If you want to turn these off, just click the gear icon next to the indicator name and scroll down to the stop loss section and turn the stop loss off. If you want to keep it, just make sure to adjust the settings to fit your trading style.
The candle trailing length looks at the highest high(for shorts) or lowest low(for longs) for the number of bars you enter in the input. So if you set it to 3, then it will use the highest high or lowest low for the previous 3 bars and take that value as a starting point for the stop loss. Then it will add an average candle size to that value to get your stop loss price. The average candle size multiple is set to 1 by default, but you can increase this if you would like a larger margin for the trade to move before stopping you out.
You can increase the candle trailing length as well as the candle size multiple to get a wider stop loss or lower them for a really tight stop loss.
You can also toggle the stop loss price on or off. By default, the stop loss shows the price of the stop loss on the label, but if you don’t want that, then go in to the settings and uncheck the box for Show Price Of Stop Loss.
Trailing Stop Loss Exit From Here
In the stop loss section, there is an option to turn on the Trailing Stop Loss Exit From Here. This mode when turned on will prevent the algorithm from creating any new signals and will start a line plot that shows you where your trailing stop loss should be. This mode is great for helping you hold positions as long as possible after getting your entry position. The settings of the normal stop loss will affect this trailing mode, so make sure to adjust those before using this feature.
The trailing stop loss exit is a great way to help you hold your positions as long as possible, without conflicting signals coming in and making you wonder if you should get out of your position or not. Maximizing your positions like this is a great way to offset your losses so that you can bring your account into profitability instead of just always taking small profits because you are afraid of losing your profit. This mode is meant for longer swings, so you will not want to use this feature for quick scalps. Make sure you are only using this on positions where you got a good entry point such as a breakout retest before turning on the trailing stop loss feature.
Take Profit Levels
The take profit levels are set to use a 3, 6 and 9 multiple of an average candle to give levels by default. So it calculates the average candle size and then multiplies it by 3, 6 and 9 to get your default levels. Each level can be adjusted by increasing or decreasing the multiple used for each level. For bigger moves, increase these numbers and for quick scalps, lower these numbers. Or if you want to maximize your positions, use the trailing stop loss exit mode as mentioned above.
If you prefer the take profit levels to not show the price on the labels, then go in to the settings and uncheck the toggle for Show Price Of Take Profit Levels.
Candle Coloring Based On Price Action Direction
By default, this buy and sell signal indicator reads the price action(according to the trade mode setting) and paints the candles according to the direction of the current price action. This will keep the candle coloring all one color when going up and all one color when going down to help reduce anxiety when you get candles that are going the opposite direction, but are still bullish or bearish according to the previous candles.
For this custom candle coloring to show up properly, you will need to go to your chart settings(desktop – gear icon top right, mobile – 3 dots then chart settings) and go to the symbol tab. From in there you will need to turn off body, borders and wick. Then you will get the custom candle coloring to show properly. If you want to change the colors used, go in to the indicator settings and at the very bottom you can change the colors used for bullish and bearish candles to match your style.
Bull & Bear Signals
The bull & bear signals are the arrows that you see showing you which direction to trade. From the indicator settings, you can change the color of the arrows, change the size of the arrows and also change the color of the unconfirmed signals. When the candle is still open and matches our parameters for a signal, an arrow will show up, but it will be semi-transparent to let you know you should wait for the candle to close before following that signal. If the candle is still open, then the signal is not confirmed and this can lead to getting into positions too early and the signal not confirming, so always wait for the signal to close first. If you don’t want any signals to show up until the signal is confirmed, then just set the unconfirmed signal colors to 0% transparency.
Wait For Confirming Price Action Dots
When a signal is given, but one of many caution parameters are met, then a yellow dot will appear above/below the candle to warn you that the current signal is valid and meets our parameters however, it also has certain characteristics that may make it a false signal. When that happens, a yellow dot appears which means you should wait for confirming price action in the same direction as the signal before following that signal. This is meant to help you avoid bad signals and notify you when you should be cautious. If you prefer to not have these dots show up on your chart, you can turn them off in the indicator settings.
False Signal Warning X Cross
When a signal comes in and then on the very next bar, an opposing signal comes in and the candle is engulfing the previous candle, then a yellow X cross will appear to let you know that the previous signal was just a liquidity grab and the market has decided to continue the same trend. This is warning you to get out of the position immediately if you followed the bad signal to help preserve your capital. If you do not want these to show up on your chart, you can turn them off in the indicator settings.
Confirmation Signals After Caution Dots
When a yellow dot appears with a signal, you are supposed to wait for confirming price action. By turning on these confirmation signals, then you will get a second confirmation signal of the same direction once our signal parameters have been met again within a few bars of the original signal. This is meant to let you know that confirming price action has taken place and it is now safer to enter that trade. If you do not want this on your chart, you can turn it off in the indicator settings.
Volume Spike Levels
For some support and resistance levels, there is also an option to add levels where volume spikes happened to your chart. You will need to turn this volume spike levels on and then adjust the volume spike multiple to fit the current chart you are looking at. This setting will need to be adjusted on most charts due to how the volume can vary so drastically between each ticker and timeframe. Increasing the volume spike multiple will decrease the number of lines shown and decreasing the volume spike multiple will increase the number of levels shown. Adjust this to suit your preference. You can also adjust the color of the volume spike lines to match your chart settings.