The strategy for Forex trading “PVSRA” is based on prices, volumes, support and resistance levels, rationale and explanation of the principles of their interaction. Its name is an abbreviation of the English words Price, Volume, Support & Resistance Analysis.
PVSRA’s strategy is remarkable in that it is guided by the opinion that the price is driven by market makers, i.e. a small group of banks. It’s a controversial question and there’s no exact answer to it. But it is quite possible that in certain periods market makers move the price in the right direction for profitable execution of their orders. The PVSRA strategy makes it possible to determine this direction. Adjustable brokers will ensure reliable trading.
The second component of the strategy is volume. In the Forex market this means the number of price movements over a period of time. The increase in activity indicates an increase in interest. But short or long term interest? If you determine that the maximum or minimum is the largest volume, you can understand the direction. For example, if the price is within a range, the increase in volumes near its boundary may indicate the direction of the breakthrough. Similarly, you can determine the break-down of a key level or a rebound in trading volumes near it.
The next component of the strategy is the support and resistance levels. The most important levels on the market are round numbers with zeros at the end, as well as halves and quarters. Typically, prices below or above these levels are consolidated. The PVSRA strategy believes that market makers place their orders at the time of consolidation and move in the right direction after their execution.
Scheme of work on strategy:
1. We determine the price consolidation above or below key levels.
2. We study the price chart on different timeframes
3. Having found out where the volume increases (at the minimum or maximum), we draw a conclusion about the direction of movement.
It will take some time to study the PVSRA trading strategy, depending on the trader’s experience. The point is that the market is not logical and cannot be calculated mathematically. Over time, the subconscious will accumulate more information, trading situations and patterns, and the trader begins to read the market better, anticipating market makers’ plans. This kind of work is closer to art, where there is no logic and mathematics.
1. The “Trade Levels” indicator replaces the readings of open and pending orders used in the MetaTrader terminal with its own ones, with the possibility of adjustment. This indicator shows the expected entry points, the average level of all orders, Take Profit and Stop Loss levels.
2. The “Access Panel” indicator gives access to the chart settings: hours, Bid/Ask levels, trade levels, Fibonacci levels, beers, markers of maximum and minimum by days and weeks, day separators. In the default template, some features are disabled.
3. The “FFCAL Panel” indicator shows information about four upcoming events in the economic calendar that affect price volatility. The importance of events is taken into account.
4. The Trend Suite indicator shows the moving middle lines in various forms. The default is 50 EMA.
5. The “Candles Suite” indicator displays PVA bars (Price-Volume Analysis) and candlesticks, regular bars and candlesticks, as well as candlesticks calculated by the Heiken-Ashi indicator algorithm. When the “Maximum (minimum) point” situation appears on the market, a pop-up window appears.
6. The “Volumes Suite” indicator displays PVA-volumes and standard sizes in the lower window. When the “Maximum (minimum) point” situation appears, a pop-up window appears
This example shows how the price consolidated above the level of 1.2000, and after the increase in trade volumes began to grow. Growth continued to reach 1,2400, where volumes began to decline and a new consolidation zone appeared.
This example shows the increased volumes on a small timeframe near the levels 1.0700 and 1.0725. The fact that the volume has grown on the falling candle means a further decrease.
The link below allows you to download indicators and strategy templates. Templates are made in two versions – white and black.