Trading Strategies With The Buy Sell Indicator

trading strategies with the buy and sell indicator

You’ve got access to an awesome Buy and Sell Indicator for Tradingview and now you need to know what trading strategies to use with it right? Well, there are an endless amount of different ways to use this indicator, but here we will go over some of our favorite ways to trade using the Buy Sell Indicator when trading stocks, crypto, forex, futures, currency pairs, commodities and more. If you need some help learning the basics and settings, check out our guide on how to use the Buy and Sell Indicator.

Scalping Strategies

Scalping is a way of trading in short periods of time to capture small gains from the markets. Scalping is usually done on the 15 minute, 5 minute and 1 minute charts most of the time.

If using the 15 minute chart, I recommend using scalp mode to get the best entries and exits. The 15 minute price chart has enough price movement for scalp mode to work just fine on that timeframe.

If using the 5 minute timeframe, I recommend using either scalp mode or super swing mode. Scalp mode will get you the earliest trading signals, but may have some false signals when trying to catch the tops and bottoms sometimes. Super swing mode on the 5 minute chart can help avoid some of the false signals when trying to catch the peaks. It will also have less noise.

If using the 1 minute chart, I recommend using super swing mode or long swing mode.

No matter which chart timeframe or trade mode you use, remember that you can always use the trailing stop loss exit setting as well to help you hold your position as long as possible and avoid opposing signals coming in during your trade. This helps reduce anxiety and gives you a clear action plan on when to exit your position.

Support & Resistance Scalping

Support & resistance scalping is my personal favorite strategy. The technical analysis can be done quickly, gives you high probability trades and is easy to spot reversal areas when you have the right tools. For support and resistance scalping, I recommend using our Supply And Demand indicator or our Auto Support & Resistance Volume Based indicator to get your reversal levels. You will need to adjust your settings to fine tune your charts, but to start, try using the Supply And Demand indicator, with only the high level timeframes turned on such as the daily, weekly, monthly, quarterly and yearly levels. 

Now that you have your support & resistance levels ready, it’s time to start looking for trading opportunities. What we are looking for is current price to extend to our major support & resistance levels and then turn around. You want to see some nice candle wicks off of our levels and then a signal to follow those wicks. Make sure to wait for the candle to close with a signal before entering the position. Once you have entered, make sure to set a stop loss just above the previous high/low point where our reversal level was to ensure your trade has a limited amount of risk.

Next you should set your take profit levels at the next major support/resistance level or pivot point. I like to have a fixed take profit level that I am aiming for and then I also use the trailing stop loss exit from here setting from the Buy Sell Indicator to lock in profits along the way in case the trade turns on me. I use the candle trailing length between 3 and 5 with the multiple set to 1. This gives a good amount of range for the trade to move around in without stopping you out, but also keeps your trade from reversing and causing you to take much of a loss.

Trend Scalping

You keep hearing that the trend is your friend right? Well, in some cases yes, but in some cases no. Trend scalping is an effective way to grab some quick gains from the markets, but you need to be careful and make sure the market is actually trending before making these trades. But how do you make sure the market is trending? Well, to start you should use a trend indicator such as our Combined Moving Average script or you can use anything else that shows you the trend and gives you reliable trend continuation areas. 

Once you have your trend indicator set up, look for good areas where price should bounce and continue the trend. Wait for price to retrace to this area and show some nice wicks that indicate buying/selling pressure and then wait for a signal to come in, confirming your entry. Make sure to wait for the candle to close with a signal before following the signal.

Then, once you have made your entry, set your stop loss just above/below the bounce zone where you entered and engage the trailing stop loss exit from here setting in the Buy Sell Indicator. Let your stop loss trail the trade so you can maximize your position gains while locking in profit along the way. You should also look for a likely reversal area to set your take profit at. Use that level as your final target for the trade and let the trailing stop loss lock in your gains along the way for you.

This is a highly probable trading set up that will help you increase your win rate and keep your account safe.

Swing Trade Strategies

Swing trading requires a lot more patience than scalp trading, but if you are good at spotting important reversal areas and don’t mind waiting for long periods between trades, then swing trading can be an excellent strategy. Most swing traders are using the 1 hour, 4 hour and daily charts to look for trade setups, so that is what we will focus on in this section, covering a couple different types of swing trading strategies using the Buy Sell Indicator.

Support & Resistance Swing Trades

Grab your best support & resistance indicator and let’s find some levels! We recommend using our Supply And Demand indicator or Volume Based Auto Support & Resistance to find reversal levels for this strategy. For supply and demand, use all of the long timeframe levels like weekly, monthly, quarterly and yearly. You should also use the long term volume spike levels as well. For volume based auto support & resistance, make sure to use timeframes that are higher than your chart timeframe for best results.

Once you have your major levels plotted out on your charts, you’ll need to look for signals to come in at or very close to these levels. I recommend going down to the 1 hour charts to look for entries, because if using the 4 hour and daily charts for entries, you may miss a decent chunk of the move waiting for a candle to close with a signal. This is completely up to you though, as the 1 hour chart will also have more false signals than the daily chart will, so choose for yourself. Make sure you wait for the candle to close with a signal for it to be valid.

Once your signal is locked in, take position and set up your exits. Set your stop loss just above/below the pivot where you entered the trade and set your take profit level at or just before the next major support/resistance zone. This should be your final target for the trade, but it’s always a good idea to use a trailing stop loss as well to lock in your profits along the way. This way if the trade ends up reversing on you, then you can still exit with a partial profit instead of a loss or breakeven.

You can set up a trailing stop loss by going in to the Buy Sell Indicator setting and turning on the setting in the stop loss section titled Trailing Stoploss Exit From Here. Adjust your trailing candle length to 3-5 and set the candle multiple to 1. This will prevent the indicator from giving any more new signals and will show a trailing stop loss line that you can use to get out if the trade turns on you. Make sure to set an alert for when your trailing stop loss gets hit so you don’t miss it. 

Trend Swing Trading

Swing trading with the trend can bring some large moves in a short amount of time if you can be selective about your trades. The best way to do this is to use a reliable trend following system such as the VWMAs from Trend Friend Swing Trade & Scalp Signals or our Combined Moving Average script. Both of those moving averages are great areas to find likely bounce zones. We are going to use the 1 hour, 4 hour and 1 day charts and look for bounces off of the VWMA 100 & 500 if using Trend Friend or the 50 & 100 Combined Moving Averages if using that script.

The biggest thing to make sure of when trend trading is making sure the trend is established. Do this by making sure the market has already cleared recent highs/lows and the moving averages are in a dominant direction. Wait for pullbacks to your main moving averages and then look for entry signals near the bounce zones. Once your signal comes in and the candle is closed, take your entry.

Now turn on the Trailing Stoploss Exit From Here setting from the Buy Sell Indicator and keep the candle trailing length between 3 and 5 with the candle multiple at 1. This will give you a nice trailing stop loss to use as your exit parameter. In the event that your trade takes off and goes vertical, use either your moving average or the trailing stop loss to exit the position once it has started to settle down and go sideways to maximize your profits.

You can also use major support and resistance levels as your final targets for your take profit levels as well since price will typically get rejected at those levels.

Adding Confluence To Your Strategy

No matter what type of options trading strategy you use, adding some confluence to your strategy is usually a good idea. You can do this by including another technical indicator or using the recent price action to add more confidence in the trade direction. One way of doing this is to look at the recent swing highs and lows and see if the price action is making higher highs and higher lows(or opposite) and using that as extra confirmation of the trade direction.

You can also use other leading indicators to confirm your trades like our Scalper Ribbon which is an oscillator made up of multiple oscillators. You can also use our Buy Sell Signal Scanner to see if the higher timeframes are also going in the same direction so you can trade with the trend. Either way, try adding some extra confluence to your strategy, but if it gives you analysis paralysis and makes it harder for you to make trading decisions, then just stick to the basics.

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