SVSR Indicator
What is SVSR?
SVSR is Stability, Volume, Strength & Range. It represents buying and selling pressure, and can give unique insight into how the market is behaving; which can sometimes be difficult to discern from watching price action as the market can be deceiving.
The SVSR indicator is really four separate indicators in one, built from our own algorithms. It combines each component into one output for a simple and clear picture of market pressure. Each component has it's own settings and you can apply weighting to each in order to adjust the indicator output to suit your preference. Alternatively, you could apply the indicator multiple times and isolate each component, if you wanted to see them separately.
Nothing can predict the future, but the SVSR indicator provides data that can assist you to more confidently enter a trade, avoid a questionable trade, or give indication that it's time to get out of your current trade.
Price Stability
S
An analysis of how stable price is moving in a certain direction.
Volume Differential
V
An analysis of changes in volume relative to price action.
Market Strength
S
An analysis of how strong the market is moving in a certain direction.
Range Analysis
R
An analysis of price action relative to its recent range.
That's all great, but how is it used?
The main three ways we use SVSR:
- Looking for a Change in Buying or Selling Pressure.
- Divergence between the SVSR and Price.
- Trend Line Break of SVSR.
SVSR comes in two variations: Single-Timeframe and Multi-Timeframe.
The Single-Timeframe version can be applied to any chart type and uses the data series of that chart to perform it's calculations.
The Multi-Timeframe version uses the data series for the chart that it's applied to, but also allows you to include data from higher timeframes, which can provide a clearer picture of the overall buying and selling pressure.
The following is an example of how these would look on a tick based chart, but other chart types work as well.
More Detail on the SVSR Plot
Breakdown of the SVSR Single-Timeframe Settings
Breakdown of the SVSR Multi-Timeframe Settings
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Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
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