The Ultimate Buy and Sell Indicator: A Game-Changing Tool for Traders
The Ultimate Buy and Sell Indicator, created by Sherlock_MacGyver, is a custom indicator available on TradingView that aims to help traders identify potential entry and exit points in the market. With over 10,000 followers, it has become one of the most popular custom indicators on TradingView. This comprehensive review will examine how the indicator works, its key features, customization options, and performance to help traders determine if it aligns with their trading style and objectives.
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How the Indicator Works
The indicator relies primarily on the Relative Strength Index (RSI) indicator and incorporates Bollinger Bands to generate trade signals. It scans for various Bollinger Band crossover events, referred to as “Watch Signals,” to detect shifts in market momentum. These watch signals include:
- Price crossing above or below the Bollinger Bands
- RSI crossing above or below the Bollinger Bands
The indicator plots orange dots to indicate buy opportunities and blue dots to signal selling opportunities. Traders can then look for confirmation from candlestick patterns or other indicators before entering a trade.
In addition to generating entry signals, the Ultimate Buy and Sell Indicator also identifies suitable stop loss and take profit levels based on recent price action and volatility. It aims to improve risk management for traders using the signals.
The Ultimate Buy and Sell Indicator Key Features and Customization
The indicator comes packed with an extensive list of customization features intended for advanced traders, but beginners can also use it effectively with default settings.
Flexible Signal Options
Traders can enable or disable specific types of buy and sell signals and configure the wait time for additional signals after an initial signal triggers. This allows focusing on the highest probability setups.
Multiple Moving Average Options
The indicator allows choosing from over 10 different moving average types, lengths, and crossovers to fine-tune signals to different trading objectives, markets, and timeframes.
Risk Management Tools
Auto-calculated stop loss and take profit levels provide dynamic risk management as market conditions evolve. Traders can also set fixed stop loss pips or use different stop calculation methods.
Signal Validity Filters
Filters such as volume, time of day, or session parameters can be configured to avoid lower probability signals or restrict trading to specific market conditions.
Customizable Alerts and Notifications
Email, mobile push notification, and audio alerts can be enabled to notify traders of new signal occurrences without having to stare at charts all day.
Backtesting for Strategy Optimization
TradingView’s strategy tester allows traders to analyze the indicator’s historical performance to fine-tune settings and determine if it could improve results.
Performance and Risk Management
According to data shared by the author, the indicator achieved a 71% win rate during backtesting across over 11,000 signals on the S&P 500 index over a 5-year period. However, as with any indicator, past performance does not guarantee future results.
The author stresses that solid risk management through stop losses, position sizing, and risk-reward ratios is essential when using the signals. The indicator aims to support risk management but should not be used blindly without appropriate strategies.
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Ease of Use for Beginner Traders
While the indicator offers advanced customization, beginner traders can still use it out-of-the-box with default settings. The visual interface clearly displays signals on the chart using colored dots and plots stop loss/take profit levels.
The detailed tooltip explanations for each setting simplify understanding how adjustments impact performance. Beginners may wish to run multiple backtests to determine the best configurations for their strategy before applying it to live trading.
The Ultimate Buy and Sell Indicator Final Verdict
The Ultimate Buy and Sell Indicator provides high-probability trade signals across various markets and timeframes with extensive optimization features for advanced traders. While no indicator can replace solid risk management practices, it aims to boost strategy performance if used prudently.
Both novice and experienced traders looking for an edge in identifying potential trades may find great value in this TradingView indicator. Be sure to use the indicator’s backtesting tools to determine if it could improve your current system before applying it.
Overall, the Ultimate Buy and Sell Indicator stands out as one of the most versatile custom indicators available on TradingView for technical traders in search of an extra informational edge.