Buyer-Seller Locomotive IndexBuyer-Seller Locomotive Index (BSLI)
An original indicator that measures buyer and seller pressure, momentum shifts, and structural control in the market.
Overview
The Buyer-Seller Locomotive Index evaluates candle-level positioning relative to an adaptive EMA-based reference price. It calculates bull vs bear strength percentages and Total Power momentum using fast and slow EMAs, providing insight into which side currently dominates market structure. By combining pressure analysis with momentum smoothing, BSLI highlights both the intensity and direction of market control.
Features
Bull/Bear Strength Percentages: Normalized 0–100 values showing current dominance and threshold-based high-strength alerts.
Total Power Momentum: Fast and slow EMA crossover signals with a histogram to visualize expansion or contraction of pressure.
Visual Markers: Optional fight diamonds highlight candles intersecting the reference price, while dynamic labels show the exact strength percentages.
Crossover Signals: Circles mark potential shifts in momentum, helping to identify early transitions in market control.
Customizable Display: Users can toggle labels, markers, and histogram visibility for a clean or detailed chart view.
How to Use
BSLI provides traders with a multi-layered view of market structure:
Observe shifts in buyer vs seller dominance.
Spot early momentum transitions before trends become obvious.
Confirm price structure with Total Power and strength percentages.
Highlight periods of compression, conflict, or indecision for additional context.
This indicator is intended as a supportive analysis tool. Traders should combine it with personal methodology, risk management, and other analysis techniques. It is not a standalone trade signal.
Important Notes
Measures relative pressure, not absolute volume.
Percentages reflect current structure, not predicted price direction.
Signals are contextual; do not rely solely on crossovers for trading decisions.
Uses no lookahead; all calculations are based on completed bars.
Results may vary by asset, timeframe, and market volatility.
Originality
BSLI uniquely combines adaptive pressure extraction, normalized strength percentages, dual-EMA power momentum, conflict detection, and integrated labeling. This multi-component approach provides a clear and actionable view of the evolving balance between buyers and sellers, supporting both short-term and structural analysis.
