Summary of "💰 Buy Sell Pressure Indicator MT4/5 – Free – [TradingFinder]"

💰 Buy Sell Pressure Indicator MT4/5 – Free – [TradingFinder]

Indicator Overview

The Buy Sell Pressure (BSP) indicator is available for MetaTrader 4 and MetaTrader 5 platforms through the TradingFinder website. It helps traders identify buying and selling pressure within financial markets by displaying a histogram below the price chart.

How the Indicator Works

Histogram values above zero (positive) indicate buying pressure.
Histogram values below zero (negative) indicate selling pressure.
The histogram bars are color-coded to signal the strength and potential market direction:
- Dark Blue: Strong buying pressure (buyers dominate).
- Light Blue: Weak buying pressure (buyers weakening; possible trend reversal).
- Red: Strong selling pressure (sellers dominate).
- Pink: Weak selling pressure (sellers weakening; possible correction or upward move).

Trading Methodology / Framework

Entry Signals

Buy: When the histogram moves from negative to positive and changes to dark blue during an uptrend (confirmed by price making higher highs and higher lows).
Sell: When the histogram is negative and red during a downtrend.

Exit / Trade Management

Set stop-loss according to your personal risk management strategy.
Take profit can be set at a risk-reward ratio of 1:1 or 1:2.
Alternatively, hold the position until the histogram signals a trend reversal (e.g., turns negative for buys or positive for sells).

Divergence Use

Look for divergences between price and histogram as early trend reversal signals.
Example: Price forms a lower low while the histogram forms a higher low, indicating bullish divergence and a potential upward trend.

Indicator Settings

Users can adjust the calculation period length.
A higher period filters out short-term price noise, showing smoother, longer-term trends.

Assets, Sectors, or Instruments

No specific tickers, stocks, ETFs, or asset classes are mentioned.
The tool is generic and applicable to financial markets accessible via MT4/5 platforms.