Lopez Pressure 1.2
Metatrader Indicator (MT4/MT5)
This indicator anticipates price reversals analyzing bullish and bearish pressure in the market. The buying pressure is the sum of all the accumulation bars over a certain number of days, multiplied by the volume. The selling pressure is the sum of all of the distribution over the same number of bars, multiplied by the volume.
The indicator ratio gives you a measure of the buying pressure as a percentage of the total activity, which value should fluctuate from 0 to 100. It implements two moving averages, fast and slow, to identify changes in pressure trends and look for trades accordingly.
- A ratio of 50 means the market is balanced
- A ratio over 70 means the market is overbought
- A ratio below 30 means the market is oversold
- The red dotted line is the current ratio
- The blue line is the signal line
- The orange line is the main line
It has straightforward trading implications.
- Look for buying opportunities when the market is oversold
- Look for selling opportunities when the market is overbought
- If the signal line is above the main line the pressure is bullish
- If the signal line is below the main line the pressure is bearish
- ≡ Input parameters
When loading the indicator or EA to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks.
- Number of bars studied to calculate the pressure
- Fast MA
- Fast averaging period for the histogram
- Slow MA
- Slow averaging period for the histogram
- ? FAQ
- Does the indicator repaint?
- No, it does not repaint.
- Does the indicator implement alerts?
- No, it does not.