Buy Sell Magic Indicator
You can use Buy Sell Magic to find the market trend in Forex trading. Buy Sell Magic indicator is easy to use tool that you can apply on charts in MetaTrader 4.
Description
What is the Buy Sell Magic indicator? It is a custom trend indicator that alerts the Forex traders when to buy and sell. This special indicator does not repaint and provides specific entry and exit points to the traders. Somehow, it resembles Parabolic SAR and works the same way. However, the formula to calculate both indicators is not the same. The main purpose of the Buy Sell Magic indicator is the analysis of trending markets.
The indicator is plotted on a price chart, and in its essence, it is similar to a moving average. Still, the difference is that it moves with great acceleration and can alter its position with the price.
How to use the Buy Sell Magic indicator?
On a bullish trend (Up Trend), the indicator lies below prices, and on a bearish trend (Down Trend), the indicator lies above the prices.
If the price crosses the Buy Sell Magic indicator lines, then the indicator reverses, and its next values are located on the other side of the price. With this “lip of the indicator, the reference point will be the high or low price for the previous period. An indicator reversal is a signal either about the end (transition to a correction) of a trend or about its reversal.
Buy Sell Magic indicator is excellent at identifying market exit points. Buy positions should be liquidated when the price falls below the technical indicator line, and sell positions should be liquidated when the price rises above the line. This indicator is often used as a trailing stop line.
If a long position is opened (that is, the price is above the line), then the indicator line will move up regardless of the direction in which prices move. The magnitude of the movement of the Buy Sell Magic line depends on the magnitude of the price movement.
Buy Sell Magic indicator trading strategy
Now let’s discuss the trading strategies based on the indicator.
Long strategy
- Look for the indicator line to change its course and shift below the price.
- Wait for a bullish candle to close.
- Enter the market after the candle closes.
- Place the stop-loss near the local lows. Exit the trade when the indicator line changes its course and shifts above the price.
Short strategy
- Look for the indicator line to change its course and shift above the price.
- Wait for a bearish candle to close.
- Enter the market after the candle closes.
- Place the stop-loss near the local highs. Exit the trade when the indicator line changes its course and shifts below the price.
Buy Sell Magic conclusion
Indicator is a technical tool that helps the traders to open and close the trades at appropriate levels. However, there can be risks associated with the trading strategy. Therefore, wisely use the strategy and take confirmation from other tools to mitigate your risk.
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