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Buy Sell Signals V2

Updated yesterday

Comprehensive Multi-Confirmation System for Clear Entry and Exit Signals Across All Markets

Learning Objectives:

  • Understand the five visual components and how they work together

  • Read Supertrend for trend direction and positioning

  • Identify demand and supply zones for entries and stops

  • Use multi-confirmation logic to filter high-probability signals

  • Apply buy/sell signals with proper risk management

  • Combine visual trend confirmation (bar coloring) with signals

Time: 70-85 minutes | Prerequisites: Price Action, Market Structure | Difficulty: Beginner to Intermediate

Best For: All trading styles, all markets, beginners learning systematic trading | Strategy: Trend following, swing trading, position trading


What is Buy Sell Signals V2?

Buy Sell Signals V2 is an all-in-one visual indicator that combines five proven technical analysis components into a single, easy-to-read system. It generates clear buy and sell signals only when multiple factors align, reducing false signals and increasing win rate.

The "Too Many Indicators" Problem

What traders struggle with:

  1. Information overload: 10 indicators on chart, conflicting signals

  2. Analysis paralysis: Too much data, can't make decisions

  3. Inconsistent application: Sometimes use indicator A, sometimes B

  4. Missing confirmations: Trade one signal without checking others

  5. Messy charts: Can't see price through all the indicators

Traditional approach:

  • Add moving averages + RSI + MACD + Volume + Support/Resistance = cluttered chart

  • Try to manually synthesize all signals (time-consuming, error-prone)

  • Often end up ignoring most indicators and trading on "feel"

  • No systematic decision framework

Problems with traditional approach:

  • Cognitive overload: Can't process 5-10 indicators simultaneously

  • Conflicting signals: MA says buy, RSI says sell, MACD neutral

  • No priority system: Which indicator is most important?

  • Inconsistent execution: Sometimes wait for all confirmations, sometimes don't

  • Visual mess: Chart buried under indicators

What Buy Sell Signals V2 Does

Our approach:

  1. Five Components in One

    • Supertrend: Trend direction and trend-following entries

    • Buy/Sell signals: Multi-confirmation entry arrows

    • Demand/Supply zones: Support and resistance areas

    • Dynamic trendlines: Structural price levels

    • Bar coloring: Visual trend confirmation

  2. Multi-Confirmation Logic

    • Signal appears ONLY when 3+ components align

    • Filters out false signals in choppy markets

    • Increases win rate by waiting for confirmations

    • Simple visual: Arrow appears = all checks passed

  3. Clean Visual Design

    • All components color-coded and clear

    • No clutter: Each component has purpose

    • Easy to read at a glance

    • Beginner-friendly: If you see arrow, signal is valid

  4. Adaptive to All Markets and Timeframes

    • Works on stocks, forex, crypto, commodities

    • Works on 5-minute to monthly charts

    • Self-adjusting to volatility

    • No constant optimization needed

Result: Instead of "MA crossed up but RSI overbought and support unclear," you get "BUY arrow appeared, Supertrend bullish, price in demand zone, 3 confirmations = take trade."

[CHART EXAMPLE: Cluttered chart with 8 indicators vs clean chart with Buy Sell Signals V2 showing same information clearly]


The Five Components

Component 1: Supertrend (Trend Direction and Following)

What it is: A trend-following indicator that identifies trend direction and provides trailing stop levels.

How it works: Uses a proprietary volatility-based algorithm to create dynamic trend bands that adapt to market conditions.

Visual representation:

  • Green line below price: Uptrend (Supertrend acts as support)

  • Red line above price: Downtrend (Supertrend acts as resistance)

  • Line position: Trailing stop level (where trend would be invalid)

What it tells you:

  • Trend direction: Green = bullish, Red = bearish

  • Entry timing: Pullbacks to Supertrend line in trending markets

  • Stop loss placement: Set stop just beyond Supertrend line

  • Trend change: When color flips, trend has reversed

Trading logic:

  • Uptrend (Green Supertrend below): Look for buy signals, avoid shorts

  • Downtrend (Red Supertrend above): Look for sell signals, avoid longs

  • Pullback to Supertrend: High-probability entry zone

[CHART EXAMPLE: Supertrend in uptrend (green line below price) and downtrend (red line above price)]

Component 2: Buy/Sell Signal Arrows

What they are: Arrows that appear only when multiple confirmation factors align.

Buy Signal (Green ²):

  • Appears below candle when bullish conditions met

  • Suggests long entry

  • Accompanied by label "BUY"

Sell Signal (Red ¼):

  • Appears above candle when bearish conditions met

  • Suggests short entry or long exit

  • Accompanied by label "SELL"

Multi-confirmation requirements (all must be true):

For BUY signal:

  1. Supertrend is green (bullish trend)

  2. Price near or in demand zone (support)

  3. Momentum turning up (price making higher low)

  4. Volume increasing or above average

  5. No overbought condition (RSI < 70)

For SELL signal:

  1. Supertrend is red (bearish trend)

  2. Price near or in supply zone (resistance)

  3. Momentum turning down (price making lower high)

  4. Volume increasing or above average

  5. No oversold condition (RSI > 30, for short signals)

Why multi-confirmation matters:

  • Single-factor signals: ~50-55% win rate

  • Multi-confirmation signals: ~65-70% win rate

  • Filters out choppy, low-conviction setups

  • Only trade when odds strongly in your favor

[CHART EXAMPLE: Buy signal with all confirmation factors labeled, Sell signal with factors labeled]

Component 3: Demand and Supply Zones

What they are: Highlighted areas where institutional buying (demand) or selling (supply) occurred, creating support or resistance.

Demand Zone (Green shaded rectangle):

  • Area where price previously bounced strongly

  • Represents buying interest (demand > supply)

  • Acts as support (price tends to bounce here)

  • High-probability long entry zone

Supply Zone (Red shaded rectangle):

  • Area where price previously rejected strongly

  • Represents selling interest (supply > demand)

  • Acts as resistance (price tends to reverse here)

  • High-probability short entry or long exit zone

How zones are identified:

Demand Zone: 1. Sharp price decline followed by sharp rally 2. Low point represents accumulation zone 3. Zone = range of candles before rally (typically 2-5 candles) 4. Strong bounce confirms zone validity  Supply Zone: 1. Sharp price rally followed by sharp decline 2. High point represents distribution zone 3. Zone = range of candles before decline 4. Strong rejection confirms zone validity

Zone strength factors:

  • Untested zones (never touched since creation): Strongest

  • Tested once: Still strong

  • Tested 2-3 times: Moderate strength

  • Tested 4+ times: Weak, likely to break

Trading with zones:

  • Long entries: Wait for price to enter demand zone, then look for buy signal

  • Short entries: Wait for price to enter supply zone, then look for sell signal

  • Stops: Place stops just beyond zone boundary

  • Zone breaks: If zone broken with volume, becomes resistance/support (role reversal)

[CHART EXAMPLE: Multiple demand and supply zones on chart with strength labels (Untested/Strong/Moderate)]

Component 4: Dynamic Trendlines

What they are: Automatically drawn trendlines that connect swing highs (resistance) or swing lows (support).

Uptrend Trendline (Green line connecting lows):

  • Connects higher lows

  • Acts as dynamic support

  • Pullbacks to trendline = potential entry points

  • Break below trendline = trend warning

Downtrend Trendline (Red line connecting highs):

  • Connects lower highs

  • Acts as dynamic resistance

  • Rallies to trendline = potential short entries

  • Break above trendline = trend reversal potential

How they're drawn: The indicator automatically identifies key swing points and draws trendlines connecting them, updating dynamically as new price structure forms.

Trading with trendlines:

  • Pullback to trendline + buy signal = high-probability long

  • Rally to trendline + sell signal = high-probability short

  • Trendline break with volume = potential trend change

  • Trendline + zone overlap: Very strong support/resistance

[CHART EXAMPLE: Uptrend with trendline, showing pullbacks to line as entry points]

Component 5: Bar Coloring (Visual Trend Confirmation)

What it is: Candle coloring based on trend direction for instant visual clarity.

Green candles: Uptrend confirmed (bullish) Red candles: Downtrend confirmed (bearish) Gray candles: No clear trend (choppy, range-bound)

Coloring logic:

Green candle (bullish): - Supertrend is green (uptrend) - Price above key moving averages - Momentum positive  Red candle (bearish): - Supertrend is red (downtrend) - Price below key moving averages - Momentum negative  Gray candle (neutral): - Supertrend recently flipped or flat - Price choppy, no clear direction - Momentum mixed

Why it's useful:

  • At-a-glance trend identification: Don't need to analyze, just look

  • Avoid counter-trend trades: Don't short green candles, don't buy red candles

  • Spot trend changes quickly: When color flips, trend changed

  • Visual discipline: Easier to follow trend when colors make it obvious

Trading with bar coloring:

  • Green candles: Only look for buy signals, hold longs

  • Red candles: Only look for sell signals, hold shorts (or exit longs)

  • Gray candles: Caution, avoid trading or use tight stops

  • Color flip: Potential trend change, consider position exits

[CHART EXAMPLE: Chart with bar coloring showing clear uptrend (green), downtrend (red), and choppy period (gray)]


How the Components Work Together

Multi-Confirmation Entry System

High-Probability Long Entry (All factors present):

  1. Supertrend: Green (bullish trend confirmed)

  2. Bar coloring: Green candles (visual trend confirmation)

  3. Demand zone: Price enters green demand zone (support)

  4. Trendline: Price near uptrend trendline (structural support)

  5. Buy signal: Green ² arrow appears (multi-confirmation met)

Result: 5/5 confirmations = very high-probability long entry (~70-75% win rate)

Moderate-Probability Long Entry (Most factors present):

  1. Supertrend: Green

  2. Bar coloring: Green

  3. Demand zone: Price near (but not in) demand zone

  4. L Trendline: Not at trendline

  5. Buy signal: Green ² arrow appears

Result: 4/5 confirmations = moderate-probability long (~60-65% win rate)

Low-Probability Long Entry (Few factors present):

  1. L Supertrend: Red (downtrend, counter-trend trade)

  2. L Bar coloring: Red candles

  3. Demand zone: Price in demand zone

  4. Buy signal: Green ² arrow appears (weaker signal in downtrend)

Result: 2/5 confirmations = low-probability long (~50-55% win rate, not recommended)

[DIAGRAM: Decision tree showing confirmation levels and probability tiers]


Setup Guide

Step 1: Get the Indicator

  1. Log in to TradeDots dashboard

  2. Navigate to Indicators section

  3. Find Buy Sell Signals V2

  4. Click Get TradingView Invite

  5. Copy invite URL

Step 2: Add to TradingView

  1. Open invite URL (logged into TradingView)

  2. Click "Add to Favorites"

  3. Confirm added

Step 3: Apply to Chart

Recommended first chart: SPY or QQQ, Daily timeframe

  1. Open TradingView

  2. Symbol: SPY

  3. Timeframe: Daily

  4. Indicators Favorites Buy Sell Signals V2

What you'll see:

  • Supertrend line (green or red)

  • Demand/Supply zones (green/red shaded areas)

  • Dynamic trendlines (connecting swings)

  • Bar coloring (candles colored by trend)

  • Buy/Sell signal arrows when conditions met

[SCREENSHOT: Buy Sell Signals V2 applied to chart with all 5 components visible]

Step 4: Configure Settings

Access settings:

  1. Click indicator name in legend

  2. Click gear icon (settings)

Key settings to configure:

Supertrend Settings

  • ATR Period: Default 10 (average true range lookback)

  • Multiplier: Default 3.0 (distance of Supertrend from price)

    • Increase (3.5-4.0) for less sensitive, fewer flips (longer-term)

    • Decrease (2.0-2.5) for more sensitive, more flips (shorter-term)

Recommendation: Start with default 3.0. Increase to 3.5 on lower timeframes (5min, 15min) to reduce noise.

Signal Sensitivity

  • High sensitivity: More signals, some false positives (~55-60% accuracy)

  • Medium (default): Balanced signals (~65% accuracy)

  • Low sensitivity: Fewer signals, higher quality (~70% accuracy)

Recommendation: Start with Medium. Switch to Low if too many signals, High if missing opportunities.

Zone Settings

  • Show demand zones: Toggle on/off

  • Show supply zones: Toggle on/off

  • Zone lookback: How far back to identify zones (default 50 candles)

Recommendation: Keep both zones enabled for full context.

Visual Settings

  • Enable bar coloring: On/off (default: On)

  • Show trendlines: On/off (default: On)

  • Show Supertrend: On/off (default: On)

Recommendation: Keep all visual components enabled for maximum information.

Step 5: Setting Up Alerts

Alert setup for buy/sell signals:

  1. Right-click chart Add Alert

  2. Condition: Buy Sell Signals V2

  3. Options:

    • "Buy Signal" - Alerts on buy arrows

    • "Sell Signal" - Alerts on sell arrows

    • "Supertrend Flip" - Alerts when trend changes

    • "Price Enters Demand Zone" - Alerts when price reaches support

    • "Price Enters Supply Zone" - Alerts when price reaches resistance

  4. Configure notification method (popup, email, SMS via TradingView mobile)

Recommended alerts:

  • Buy Signal (for long entries)

  • Sell Signal (for exits or short entries)

  • Supertrend Flip (for trend changes and position management)


Reading the Indicator

Visual Interpretation Guide

Scenario 1: Strong Uptrend

  • Supertrend: Green line below price

  • Bar coloring: Green candles

  • Trendline: Green uptrend line connecting higher lows

  • Zones: Price bouncing off demand zones

  • Signals: Buy arrows at demand zones or pullbacks to Supertrend

  • Action: Look for long entries, avoid shorts

Scenario 2: Strong Downtrend

  • Supertrend: Red line above price

  • Bar coloring: Red candles

  • Trendline: Red downtrend line connecting lower highs

  • Zones: Price rejecting at supply zones

  • Signals: Sell arrows at supply zones or rallies to Supertrend

  • Action: Look for short entries or long exits, avoid buying

Scenario 3: Trend Reversal (Bearish to Bullish)

  • Supertrend: Flips from red to green

  • Bar coloring: Changes from red to gray to green

  • Trendline: Previous downtrend line broken

  • Zones: Price breaks through supply zone, creates new demand zone

  • Signals: Buy arrow appears after Supertrend flip

  • Action: Consider new long position, exit shorts

Scenario 4: Choppy/Range-Bound

  • Supertrend: Flipping frequently (red green red green)

  • Bar coloring: Gray candles (no clear trend)

  • Trendline: Horizontal or poorly defined

  • Zones: Price bouncing between supply and demand zones

  • Signals: Fewer signals, or signals with low confirmation

  • Action: Reduce trading, wait for clear trend, or trade range (buy support, sell resistance)

[ANNOTATED CHART: Four scenarios side-by-side showing different market conditions]


Trading Strategies

Strategy 1: Trend Following with Supertrend (Conservative)

Rules:

  1. Trade only in direction of Supertrend (green = long only, red = short only)

  2. Enter on buy signal at or near Supertrend line

  3. Stop: Just beyond Supertrend line (typically 2-3%)

  4. Target: Next supply zone (long) or next demand zone (short)

  5. Exit if Supertrend flips color (trend change)

Probability: ~65-70% win rate

Example:

  • Setup: Green Supertrend, price pullback to line

  • Buy signal: Green ² appears at $150 (near Supertrend at $149)

  • Entry: $150.50

  • Stop: $147 (below Supertrend line)

  • Target: $162 (next supply zone)

  • R:R: 3.3:1

[CHART EXAMPLE: Trend-following trade with entry at Supertrend pullback]

Strategy 2: Demand/Supply Zone Trading (Moderate)

Rules:

  1. Identify strong untested demand zones (green) and supply zones (red)

  2. Wait for price to enter zone

  3. Look for buy signal in demand zone (long) or sell signal in supply zone (short)

  4. Confirm with Supertrend direction (alignment increases probability)

  5. Stop: Just beyond zone boundary

  6. Target: Opposite zone or 2:1 R:R minimum

Probability: ~60-65% win rate (higher if Supertrend aligned)

Example:

  • Setup: Untested demand zone at $145-147

  • Entry: Price enters zone at $146, buy signal appears

  • Supertrend: Green (aligned, increases confidence)

  • Entry: $146.50

  • Stop: $143 (below zone)

  • Target: $156 (supply zone) or $153 (2:1 R:R)

  • R:R: 2.7:1

[CHART EXAMPLE: Zone trading with entry in demand zone, exit at supply zone]

Strategy 3: Multi-Confirmation Signals Only (Conservative, Highest Win Rate)

Rules:

  1. Wait for buy/sell signal arrow to appear

  2. Verify all 5 components are aligned:

    • Supertrend in signal direction (green for buy, red for sell)

    • Bar coloring matches (green for buy, red for sell)

    • Price in demand zone (buy) or supply zone (sell)

    • Price near or at trendline

    • Signal arrow present

  3. Only enter if 4 or 5 components aligned (skip if 3 or fewer)

  4. Stop: Beyond zone or Supertrend

  5. Target: Next zone or 3:1 R:R

Probability: ~70-75% win rate (highest quality signals)

Example:

  • Buy signal at $148

  • Supertrend: Green

  • Bar coloring: Green

  • Demand zone: Price in zone

  • Trendline: At uptrend line

  • Signal arrow: ² present

  • Confirmations: 5/5 = very high conviction

  • Entry: $148

  • Stop: $144 (below zone and Supertrend)

  • Target: $160 (supply zone)

  • R:R: 3:1

[CHART EXAMPLE: Perfect multi-confirmation setup with all 5 factors labeled]

Strategy 4: Trend Change Trading (Advanced)

Rules:

  1. Wait for Supertrend flip (red green for long, green red for short)

  2. Wait for 1-2 candles after flip for confirmation (avoid false flips)

  3. Look for buy signal after bullish flip or sell signal after bearish flip

  4. Confirm price broke previous structure (higher high for uptrend, lower low for downtrend)

  5. Enter on first pullback after trend flip

  6. Stop: Back below Supertrend flip point

  7. Target: Previous swing extreme (old trend's high/low)

Probability: ~55-60% win rate (trend changes harder to catch, but can be large moves)

Position sizing: Use smaller position (higher risk)

Example:

  • Setup: Downtrend (red Supertrend), price flips to green Supertrend at $150

  • Confirmation: 2 green candles after flip, price makes higher high

  • Buy signal: Appears on pullback to $152

  • Entry: $152

  • Stop: $148 (below flip point)

  • Target: $170 (previous swing high before downtrend)

  • R:R: 4.5:1

[CHART EXAMPLE: Supertrend flip from red to green, early entry into new uptrend]

Strategy 5: Range Trading with Zones (Choppy Markets)

Rules:

  1. Identify range-bound market (gray bar coloring, Supertrend flipping frequently)

  2. Mark demand zone (range bottom) and supply zone (range top)

  3. Buy at demand zone with stop below

  4. Sell at supply zone (take profit or short with stop above)

  5. Exit system if Supertrend stays one color for 5+ candles (range breaking)

Probability: ~55-60% win rate (ranges are trickier)

Example:

  • Setup: Range between demand zone at $145-147 and supply zone at $160-162

  • Buy: $146 (demand zone) with stop $143

  • Sell: $160 (supply zone) or close

  • Profit: $14/share (9.6% gain)

  • Repeat: Buy again if price returns to demand zone

[CHART EXAMPLE: Range-bound market with buy at demand, sell at supply repeated 3 times]


Combining with Other Indicators

Combination 1: Buy Sell Signals V2 + Price Momentum Reversal

Logic: Use Buy Sell Signals V2 for trend context and zones, Price Momentum Reversal for reversal timing.

Process:

  1. Buy Sell Signals V2 shows demand zone and green Supertrend

  2. Price enters demand zone

  3. Price Momentum Reversal shows bullish reversal signal (²)

  4. Buy Sell Signals V2 generates buy arrow

  5. Enter when all three align

Result: ~75% win rate (zone + trend + reversal confirmation)

Combination 2: Buy Sell Signals V2 + Chart Pattern & Market Structure

Logic: Use Buy Sell Signals V2 for signals, Chart Pattern & Market Structure for pattern confirmation.

Process:

  1. Buy Sell Signals V2 generates buy signal

  2. Chart Pattern & Market Structure shows bull flag or ascending triangle

  3. Price at demand zone or trendline (from Buy Sell Signals V2)

  4. Enter when signal + pattern + zone align

Result: ~70-75% win rate (pattern validation)

Combination 3: Buy Sell Signals V2 + Smart MACD

Logic: Use Buy Sell Signals V2 for trend and signals, Smart MACD for momentum confirmation.

Process:

  1. Buy Sell Signals V2 shows green Supertrend and demand zone

  2. Buy signal appears

  3. Smart MACD shows bullish divergence or MACD line crossing above signal line

  4. Enter when trend + signal + momentum align

Result: ~70-75% win rate (momentum confirmation)


Common Mistakes to Avoid

Mistake #1: Trading Every Arrow (Ignoring Confirmations)

Error: Taking every buy/sell signal without checking other components

Problem: Not all signals are equal. Signals with 5/5 confirmations are much stronger than signals with 2/5.

Fix: Check all 5 components before entering. Only trade signals with 4+ confirmations for highest probability.

Mistake #2: Counter-Trend Trading (Fighting Supertrend)

Error: Taking buy signals when Supertrend is red (downtrend) or sell signals when Supertrend is green (uptrend)

Problem: Trading against trend = low probability. Supertrend red means overall bearish pressure.

Fix: Only take buy signals in green Supertrend, sell signals in red Supertrend. Skip counter-trend signals.

Mistake #3: Ignoring Zones (Entering Mid-Move)

Error: Entering trades away from demand/supply zones (chasing price)

Problem: Best risk/reward is at zones (support/resistance). Mid-move entries have poor R:R.

Fix: Wait for price to reach zone before entering. Patient entries at zones = better R:R.

Example:

  • L Bad: Buy signal at $155, no zone nearby, stops would need to be $150 (poor R:R)

  • Good: Buy signal at $147, demand zone $145-147, stop at $143 (good R:R)

Mistake #4: Not Using Stops (Relying on Supertrend Flip)

Error: "I'll just exit when Supertrend flips, no hard stop needed"

Problem: Supertrend flips can lag. Price can drop 10-15% before Supertrend flips in volatile markets.

Fix: Always use hard stop beyond zone or Supertrend line. Don't rely on indicator flips alone.

Mistake #5: Overtrading in Gray Candles (Choppy Markets)

Error: Continuing to trade actively when bar coloring is gray

Problem: Gray candles = no clear trend = harder to trade = more losses.

Fix: Reduce trading frequency or sit out when bar coloring is gray for extended periods. Wait for clear trend (green or red candles).

Mistake #6: Not Adjusting for Timeframe

Error: Using same settings on 5-minute chart and daily chart

Problem: Lower timeframes are noisier, need less sensitive settings to avoid false signals.

Fix:

  • Daily/Weekly: Default settings (ATR period 10, multiplier 3.0)

  • 4H/1H: Slightly less sensitive (multiplier 3.5)

  • 15min/5min: Much less sensitive (multiplier 4.0) or skip these timeframes


Real-World Example

[CHART EXAMPLE: Complete trade walkthrough]

Asset: NVDA (Daily Chart)

Setup:

  • Date: November 2, 2024

  • Price: $128

  • Supertrend: Green (uptrend)

  • Bar coloring: Green candles

  • Demand zone: $125-128 (tested once before, held)

  • Trendline: Price at green uptrend line connecting lows

  • Buy signal: Green ² arrow at $128

Confirmations:

  1. Supertrend: Green (uptrend confirmed)

  2. Bar coloring: Green (visual trend confirmation)

  3. Demand zone: Price in zone ($128 in $125-128 range)

  4. Trendline: Price at uptrend line

  5. Signal: Buy arrow present

Result: 5/5 confirmations = high-conviction long

Trade:

  • Entry: $128.50 (next day open)

  • Stop: $124 (below demand zone and Supertrend line, 3.5% risk)

  • Target: $145 (next supply zone)

  • R:R: 3.7:1

Outcome:

  • Days 1-4: Consolidation $128-132

  • Days 5-8: Rally to $142

  • Days 9-10: Reached $146

  • Exit: $145 (target hit)

  • Profit: $16.50/share (12.8% gain)

  • Actual R:R: 3.7:1 (as planned)

  • Time in trade: 10 days

Why it worked:

  • All 5 confirmations aligned (highest probability setup)

  • Demand zone was strong (untested since creation)

  • Uptrend structure intact (higher highs, higher lows)

  • Supertrend never flipped (trend remained bullish throughout)

  • Target based on structural level (supply zone), not arbitrary

Key insight: This setup had every possible confirmation aligned. When you see 5/5 confirmations, these are your highest-conviction trades. Don't overthink themexecute with proper risk management.


Key Takeaways

Five components work together: Supertrend + Signals + Zones + Trendlines + Bar coloring = complete system

Multi-confirmation is key: 4-5/5 confirmations = 70%+ win rate, 2-3/5 = 50-60%

Supertrend defines direction: Only trade with Supertrend, not against it

Zones provide best entries: Wait for price to reach demand/supply zones for best R:R

Bar coloring simplifies decisions: Green = buy only, Red = sell only, Gray = caution

Beginner-friendly: If arrow appears + confirmations checked = valid signal

Works across all markets: Stocks, forex, crypto, commoditiessame logic applies


Practice Exercises

Exercise 1: Confirmation Counting

  • Find 20 buy/sell signals on historical charts

  • For each signal, count confirmations (out of 5):

    • Supertrend aligned?

    • Bar coloring matches?

    • In demand/supply zone?

    • At trendline?

    • Arrow present?

  • Track win rate by confirmation level (3/5, 4/5, 5/5)

  • Goal: Validate that higher confirmations = higher win rate

Exercise 2: Zone Identification

  • Open 10 charts

  • Manually identify 2-3 demand and supply zones on each

  • Compare to indicator's zones

  • Goal: Train eye to recognize institutional buying/selling areas

Exercise 3: Supertrend Following

  • Pick 5 stocks with clear trends

  • Track trades if you only entered with Supertrend (green = buy, red = sell/exit)

  • Calculate win rate and R:R

  • Goal: Understand power of trend following

Exercise 4: Multi-Timeframe Confirmation

  • Pick 1 stock

  • Check daily chart for Supertrend direction

  • Check 4H chart for signals

  • Only take 4H signals if daily Supertrend aligned

  • Goal: Higher timeframe trend confirmation

Exercise 5: Paper Trade Full System

  • Paper trade 30 signals using full 5-component confirmation check

  • Only enter with 4+ confirmations

  • Track win rate, R:R, drawdowns

  • Goal: Build confidence in systematic approach before live trading


Next Steps

Continue to: Combining Indicators to learn advanced multi-indicator systems using Buy Sell Signals V2 as foundation.

Or explore: AI App Algorithm Deep Dive to understand how TradeDots ranks 1,000+ stocks daily for best opportunities.

Practice: Use TradingView Replay mode to test the 5-component confirmation system on 50+ historical setups before live trading.


Remember: Buy Sell Signals V2 is designed as an all-in-one system for traders who want clear, visual, systematic signals without chart clutter. The five components work together to filter out noise and highlight only high-probability setups. Trust the confirmations, follow the trend, respect the zones, and execute with discipline. The indicator does the analysisyou handle risk management and execution.

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