The best results are achieved when these indicators are used during trend movements; however, this strategy may also be applied during sideways movements. The main currency pair is GBP/USD, with the time interval - 1H.

The list of indicators:
  • Buy Sell pressure volume (BSPV) over the period of 30 days (further BSPV).
  • Parabolic SAR with the parameters 0.02; 0.2.
  • Exponential moving average with the period 48.

Conditions required for opening a buy transaction

  • If the indicator BSPV moves on from the negative to the positive zone and changes color from red to green, and at the same time, Parabolic SAR on the candlestick shifts below the price chart, then, at the opening of the next candlestick we can carry out a buy transaction.
    Trading strategy is based on the use of the indicator “Buy Sell pressure volume”
  • If the indicator BSPV changes color by one candlestick later than the indicator moving below the price chart, then, an additional condition comes into force, that is: the price chart shall be higher than the moving average. And a Buy transaction can be concluded at the opening of the next candlestick.

Stop Loss is set by a few points below the Parabolic SAR but not exceeding 50 points. While this indicator is still below the entry point, it is necessary to lower the value of stop-loss upon indications of the indicator Parabolic SAR. After passing 30 points in the positive zone, stop-loss shall be returned to the transaction opening level.

As soon as the profit of the current transaction reaches 50 points, a Trailing Stop of 25 points shall be set. This setting will act as a condition for closing the transaction.

Conditions required for opening a sell transaction

  • If the indicator BSPV moves from the positive to the negative zone and changes color from green to red and if on the same candlestick Parabolic SAR over-jumps the price chart, then, on the opening of the next candlestick we can carry out a sell transaction.
    Trading strategy is based on the use of the indicator “Buy Sell pressure volume”
  • If the indicator BSPV changes color by one candlestick later than the indicator moving below the price chart, then, an additional condition comes into force, that is: the price chart shall be higher than the moving average. And a Buy transaction can be concluded at the opening of the next candlestick.

Stop Loss is set by a few points below the Parabolic SAR but not exceeding 50 points. While this indicator is still below the entry point, it is required to reduce the value of stop-loss upon indications of the indicator Parabolic SAR.

As soon as the profit of the current transaction reaches 50 points, a trailing stop of 25 points shall be set. This setting will act as a condition for closing of the transaction.