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This indicator anticipates a price reversal by analyzing bullish and bearish pressure in the market. The purchase pressure is the sum of all cumulative purchases.
bars for a certain number of days, multiplied by the volume. The selling pressure is the sum of all distributions for the same amount of time.
the number of bars multiplied by the volume.

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The indicator coefficient gives you a measure of buyer pressure as a percentage of total activity, the value of which should range from 0 to 100. He
implements two moving averages: fast and slow to detect changes in pressure trends and look for deals
accordingly.

• A ratio of 50 means that the market is balanced
• A ratio of more than 70 means that the market is overbought
• A ratio below 30 means that the market is oversold
• The red dotted line is the current ratio
• Blue line – signal line
• Orange line – main line

This has direct trade 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

• Period: the number of bars studied to calculate the pressure
• Fast MA: fast averaging period for the histogram
• Slow MA: slow averaging period for the histogram

Arturo Lopez Perez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.

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