Buying & Selling Pressure

fract Updated   
Buying and selling pressure is a volatility indicator which denotes the balance between buyers and sellers inside candlestick.
You set the length to average it just like ATR. But This offers further break down of participants of the market.
Pretty much at any condition of the market the indicator can filter out interesting details to make trading decisions faster or confirm them.

So keep it simple we have two lines
🟒 Green β†’ buying pressure
πŸ”΄ Red β†’ selling pressure

If green is rising β†’ Price most likely will grow
If green is rising and red is falling β†’ Price will grow at higher probability
If red is rising β†’ Price most likely will fall
If red is rising and green is falling β†’ Price will fall at higher probability

When they both grow or fall β†’ wait till one of them goes opposite way.

β•³ Crossings can indicate turning points for bigger price swings.
Technically by very act of intersecting means that Buying and Selling Pressure are equal.

Can be used for Demand/Supply analysis and evaluate the support/resistance levels.
Release Notes:
Release Notes:
Added background colors depending on relationship between average BP and SP
Release Notes:
Now when Buying Pressure falls, it turns πŸ”΅ blue.
Selling Pressure turns 🟠 orange once it falls accordingly.
It is important to document these crucial changes of bullish and bearish incentive of the market.
Release Notes:
Now BSP is based on candle's actual body without excluding wick measurement out of formula.
It was very sensitive to market noises, giving us confusing signals. Eliminating wicks metrics contributed to more accurate capture of bullish and bearish market and their timing.
For example capture of covid19 lockdown πŸ“‰ bearish wave.
Release Notes:
Thanks to @bipinkaswala for noticing bug.
Release Notes:
Summarized formula of BP and SP. Also enabled consideration of wicks. Was a bad idea taking them down out of formula. Added tracking by def.
Release Notes:
Added switch for considering wicks in the formula. Some people thought it was a good idea using the indicator without wicks to eliminate noises in certain conditions of the market.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?