PVSRA trading strategy. Part 3. Indicators and example entry point
After reading first и second articles in the series on PVSRA trading strategyYou should have an idea of what's really going on in the market and what to pay attention to. In the final part, we'll talk about how to apply this knowledge in practice.
Used indicators
First, let's briefly review the indicators used in the PVSRA strategy (a more detailed description can be found in the beginning of the file of the corresponding indicator).
- #1 Trade Levels - The indicator replaces the built-in trading levels used in the MetaTrader 4 terminalwhich only clutter up the chart. In addition, the standard levels have no settings. The new indicator displays anticipated entry points, the average level of all entry points (you can set your own sizes) and take profit and stop loss levels. Lines and labels of different colors (including the Profit/Loss label). The chart is not cluttered, which makes it much easier to manage trades.
- #2 Access Panel - indicator gives access to some settings of the chart: clock, Bid/Ask levels, trading levels, Fibonacci levels, pivots, high/low markers by day and week, day separators and trading session start separators. Some of these features are disabled in the standard template (to enable them, you should set the On value in the corresponding external variables). Switching to summer/winter time is performed automatically. The correct displaying of graphical information does not depend on the incoming data. For the correct operation of the indicator it is necessary to set it correctly. More detailed information can be found in the beginning of the indicator file.
- #3 FFCAL Panel - The indicator shows information about 4 upcoming events that affect market volatility. The priorities of the events are taken into account.
- #4 Trend Suite - The indicator displays moving averages in different forms: a bar with dots, one or more lines or a bar filled with solid color. The default setting is 50 EMA.
- #5 Candles Suite - The indicator displays PVA-bars (Price-Volume Analysis) and candlesticks, regular bars and candlesticks, as well as candlesticks calculated according to the Heiken-Ashi indicator algorithm. When a "Maximum (Minimum) Point" situation occurs in the market, a pop-up window appears. For more information, please refer to the description of the indicator (in the corresponding file).
- #6 Volumes Suite - the indicator displays PVA volumes or standard volumes (bottom window). When a "Maximum (Minimum) Point" situation occurs, a pop-up window appears.
The standard templates are made for black and white backgrounds. You can change the color by changing the values of the corresponding external variables.
Example of a long trade on GBPJPY
- The market makers pushed the price to previous highs above .XX50 and then pulled back and broke through .XX50 in the opposite direction. The area below .XX50 is the previous price consolidation zone. Presumably in the consolidation zone, market makers were executing smart money orders. Presumably, rollback slowed down after market makers redefined the hunt for long orders.
- Market makers set up a pullback of 100 pips so that the previously executed long orders would be knocked out by the stop loss. In the next day and a half for the pound and the yen are about to release strong news, i.e., most likely, there will be a strong movement. We predict an upward movement, as most likely, the market makers will move the pound up. The reason is the news release. Further news on the yen might turn the price in the opposite direction.
- RWL level (see details in the description of the indicator) is considered as an assumed level for taking profit. Before that, reversals are unlikely. The figure below shows the expected entry points in the consolidation zone.
- Getting ready to close the trade. A hard stop-loss was replaced by a softer one, taking into account the trading levels (Trade Levels indicator). There was a small swing against the trade without closing it, because the day was favorable for it. In addition, the share was made and Take Profit was moved a little higher.
- The deal was closed at the level of 140.1. Total profit - 1120 pips.
Download templates and indicators of PVSRA trading strategy