Buying/Selling Pressure & Trend Strength/Direction (Expo)

"Trading in the direction of a strong trend reduces risk and increases profit potential."

Buying/Selling Pressure & Trend Strength/Direction (Expo) identifies the current buying and selling pressure which easily can be compared to each other to get a feel about if the buyers or the sellers dominate the market. The indicator is also used to determine when the price is trending strongly and where there is a high probability for a pullback or trend reversal.

• Red line = Selling Pressure
  
• Green line = Buying Pressure
  

Limit Value -- Trend Strength

• 0-200 -- Absent or Weak Trend
  
• 200-400 -- Strong Trend
  
• 400-600 -- Very Strong Trend
  
• 600-1000 -- Extremely Strong Trend (High probability for a pullback or trend reversal)
  
  The limit values can differ some from crypto/currencies/stocks/indices, you can adjust the limits so that it matches the instrument. (but in general, the standard limit works perfectly).
  

The indicator displays the following:

• Buy/Sell pressure.
  
• When you should start looking for support/resistance levels.
  
• Momentum.
  
• Trend & which strength the trend has.
  
• Geometric trend strength (Green/Red Triangles).
  
• "Heads-up" pullback/reversal - signals (Thicker buy/sell lines).
  

♦ Geometric trend is a unique way to calculate trend strength and does only occur in specific circumstances. When it does, the trend is extremely strong or it's a sign of trend exhaustion. It's always good to start looking for potential reversal points when the market is in this mode, especially if a major support/resistance levels/zones are close.

♦ "Heads-up" pullback/reversal - signals identify areas where a pullback or a reversal can occur, and if this signal comes when the buying/selling pressure is above the limit value 600 a pullback/reversal is likely.


DIVERGENCES
All types of oscillators produce divergences and so does Buying/Selling Pressure & Trend Strength/Direction (Expo). Divergences occur when the oscillator deviates from the trending price action. Bullish divergence is then when the trending price makes a lower low but the oscillator makes a higher low. Bearish divergence is then when the trending price makes a higher high but the oscillator makes a lower high.


♢ ♢ The indicator is simple to understand and use. It can be used standalone or as a part of your current trading strategy. ♢ ♢


HOW TO USE

1. Use the indicator to identify buying and selling pressure.
2. Use the indicator to determine the trend strength.
3. Use the indicator to confirm the existence, or a continuation, of a trend or a trend reversal.
4. Use the indicator to identify trend exhaustion.
5. Use the indicator to identify divergences.


INDICATOR IN ACTION

Daily chart

I hope you find this indicator useful, and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!

I will continually work on this indicator, so please share your experience and feedback as it will enable me to make even better improvements. Thanks to everyone that has already contacted me regarding my scripts. Your feedback is valuable for future developments!



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Disclaimer

Copyright by Zeiierman.

The information contained in my scripts/indicators/ideas does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.

My scripts/indicators/ideas are only for educational purposes!


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ACCESS THE INDICATOR

• Contact me on TradingView or use the links below

Versionsinformation:

Improvements!

• Performance Improvements
  

Versionsinformation:

Improvements!

• Top/Bottom Signals Added
  
• Alerts Added
  

Versionsinformation:

Improvements!

• Trend Buy/Sell Signals added.
  

Versionsinformation:

Improvements!

• Performance Improvements
  

Versionsinformation:

Improvements!

• Improved computing performances
  
• Minor changes
  

Versionsinformation:

Improvements!

• Performance improvements
  
• Tooltips Added
  
• Alerts Added