BuySell Indicator

BuySell indicator is a simple yet powerful VertexFX client side script that identifies powerful trends. It is based on Moving Average (MA) and Average True Range (ATR), and is primarily used as a signal for trend-following systems.

Moving Average is a useful indicator that provides feedback about the trend and its direction. A rising Moving Average implies a bullish trend, whereas a falling Moving Average implies a bearish trend. The Average True Range determines the strength of the trend and its movement. A gradually increasing Average True Range implies a strong trend (which can either be bullish or bearish), whereas a falling Average True Range implies exhaustion or sideways movement. By combining these two indicators the BuySell indicator identifies profitable trend-following opportunities.

This indicator has four components – blue circles, blue dots, red circles and red dots. It is primarily used in a stop-and-reverse (SAR) trading mechanism.

Interpretation of Indicator

• BLUE CIRCLE – When the direction of the Moving Average switches from downwards to upwards a BLUECIRCLE is drawn at a distance of Average True Range below the Moving Average. This indicates that the trend has changed from bearish to bullish. Enter a BUY position at the close of the candle when a blue circle is displayed.

• BLUE DOT – When the Moving Average is rising, a BLUE DOT is drawn at a distance of Average True Range below the Moving Average. It implies a bullish trend. Place a trailing stop at the swing lowbelow the blue dot if a BUY position is open.

• RED CIRCLE – When the direction of the Moving Average switches from upwards to downwards a red circle is drawn at a distance of Average True Range above the Moving Average. This indicates that the trend has changed from bullish to bearish. Enter a SELL position at the close of the candle when a red circle is displayed.

• RED DOT – When the Moving Average is falling, a red dot is drawn at a distance of Average True Range above the Moving Average. It implies a bearish trend. Place a trailing stop at the swing highabove the red dot if a SELL position is open.

Configurable Inputs:

1.MA_PERIOD –The period over which the Moving Average is calculated.

2.MA_METHOD – The method used to calculate the Moving Average. The allowed values are “MODE_SMA” (Simple Moving Average), “MODE_EMA” (Exponential Moving Average), “MODE_LWMA” (Linear Weighted Moving Average) and “MODE_SMMA” (Smoothed Moving Average).

3.MA_PRICE – The price field used to calculate the Moving Average. The allowed values are “PRICE_OPEN” (Open), “PRICE_HIGH” (High), “PRICE_LOW” (Low), “PRICE_CLOSE” (Close), “PRICE_TYPICAL” (Typical), “PRICE_WEIGHTED” (Weighted), “PRICE_MEDIAN” (Median).

4.ATR_PERIOD – The period over which the Average True Range is calculated.

To use BuySell indicator download it from here, then place it at VertexFX VTL directory:

C:\ProgramData\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts, Then right click on the tree and select refresh or restart your client station and you will find under  VTL local scripts in your client terminal.

You can check this video that talks about BuySell indicator:

Author : Expert Trader

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