PVSRA Forex Trading System

5/9/2019 PVSRA Forex trading system
The initials PVSRA stand for price, volume, support and resistance analysis. It is more of
a system of trading, this one, than other straightforward Forex trading strategies we have
covered before. Being a trading system, it will require a good understanding of the
principles behind it in order to know how it works.
The indicators are just a bonus, making it easy to identify the PVSRA tools, but the
underlying principle will be the most important. As such, it may take some time to know it
fully, but you will be happy you took the time when you finally do.
Principles of the PVSRA trading system

The main idea behind the PVSRA system is that the Forex markets cannot be understood
through logic or math. It is a market with thousands of minds responding uniquely,
therefore, making it virtually impossible to break down the entire market. However, there
are certain facts that most traders know, like how little retail traders like ourselves affect
the market. The image below shows the parties participating in the Forex market:
https://topbrokers.com/forex-strategies/pvsra-forex-trading-system 1/8
As retail traders, there is very little we can do to change the market prices, but larger
players like the hedge funds and banks can. In fact, there have been cases in the past
where institutional traders have been prosecuted for colluding in order to move market
prices in their favour. But, that’s a story for another time. We can keep complaining about
how unfair it is, or we can take advantage of it. That is exactly what the PVSRA trading
system does. (Forex market sentiment indicators)
The next principle of the PVSRA system is in the study of trading volumes. We may not
be able to tell in which direction the markets are moving, but Forex companies are able to
determine the amount of volume depending on the number of orders coming
through. Banks offering Forex trading are at an even better position since they are
sometimes working with Forex brokers as liquidity providers. If such a bank serves
multiple brokers, then they can have very accurate information about trading volume.
Nevertheless, even the most popular ECN Forex brokers can have as many clients to
have a good enough idea. It’s all about taking a sample here, as no one can tell the
trading volume in the entire market. Anyway, you don’t need to know the exact direction
the trading volume is directed, and the basic knowledge can let you know of a possible
breakthrough. For example, if markets have been trading within a range for a while, and
there is a sudden rise in trading volume, you can correctly deduce that a major market
shift is about to occur. If it happens around a support or resistance level, there’s a chance
of a breakout. (How to draw S/R levels like a pro)
Speaking of S/R levels, that is another vital principle of this system. The S/R levels act as
points of consolidation, where traders are either covering their positions or opening new
ones in anticipation of a breakout. These areas are usually around prices with zeros at
the end, or halves and quarters. Why is that? Because people don’t usually place
pending orders at unique numbers like 1.23987; it’s much more likely to have pending
orders around 1.24000 than the former. When many of the pending orders and stop
losses or take profits are activated, this can create an S/R level, where prices
consolidate, waiting for a push in either direction. When you identify the S/R levels, you
can decide the ideal entry and exit points for your trades. (Breakout trading strategies)
To decide whether the S/R levels represent long-term or short-term consolidation levels,
we will also need to look at them from different timeframes. When the consolidation level
occurs in higher timeframes, it can be a starting point for a longer trend and vice versa.
Depending on whether you prefer to trade for shorter or longer periods, it will be
important to know this nonetheless. (Long-term vs. short-term trading)
So, to recap the PVSRA principles:
Determine when prices consolidate around critical S/R levels

Use different timeframes to tell the strength of the consolidation levels
Determine when there is a decrease/increase in trading volume
Combine the position of the consolidation level and the increase in trading volume to
decide where market prices will move
These are the basic principles of the PVSRA system, and if you can master them, then
you should be able to trade any timeframe you prefer and whatever market you like,
whether Forex, stocks, commodities, etc.
Technical indicators for the PVSRA system

As mentioned before, we’re going to use a few indicators to establish the basic principles
of the trading system. These are custom indicators that have been modified specifically
for this trading system, and you will be able to download them in the link at the bottom of
the page. There are only six of them:
Trade levels
The MetaTrader 4 trading platform will display its own indicator to display all open and
pending orders within the Forex trading platforms on the main window. However, it will
only be a single line showing the point at which the order was opened, and no other clue.
The trade levels indicator will do this for you, showing you additional possible positions to
enter your take profit and stop loss orders. Other platforms like cTrader may do this
automatically, but the MT4 platform does now. That is the function of this indicator, and it
will only show up after you have placed a trade.
Access panel
The first window of this indicator will be at the top-left corner of the main trading window,
showing the various times in different regions. We know that trading volume increases at
the start and toward the end of a trading day in any time zone, and this part of the
indicator lets us know the time in different areas. For example, a trade involving the
AUD/USD will be most volatile when Australia’s and the US’ trading session is open.
The next part will be the trading levels, which combine daily and weekly highs and lows;
important for deciding if the trend may still continue. Then there are pivot points plotted
throughout the charts which tell us of possible consolidation levels. Finally, are Fibonacci
levels also to tell us about consolidation levels.
FFCAL panel
This indicator alerts us to upcoming events on the Forex calendar. To enable it to do so,
you will need to ‘Allow DLL inputs’ when you are adding the indicator to the real-time
Forex charts.
Trend suite
It provides the moving average, although slightly modified. By default, it will be a 50-
period EMA, but you can change the period yourself to suite your trading style. (How to
choose a trading strategy?)
Candles suite
It paints the candlesticks to red, green, blue and grey. Red and purple represents bullish
momentum, green and blue showing bullish momentum and grey for consolidation. A
pop-up window will appear when there is a colour change in the candles, alerting you to
trading opportunities.
Volumes suite
This one will be at the indicators window, showing price-volume analysis (PVA) bars and
standard volume bars. The PVA bars will be coloured in red, blue and green
corresponding to their meanings in the candles suite indicator. Standard volume bars will
be grey.
Working the PVSRA trading system

Let’s look at a trading chart for clues to see how the PVSRA system works:
Starting from Point A, the markets had been in a downtrend, and there was even a break
below a support level. The break didn’t last long, though, and the markets began to rise.
The rise at Point A can be seen from the volumes suite indicator when the PVA bars
turned from red to green. However, this would not have been a good trading opportunity
because markets were below the trend suite indicator and the access panel had a
resistance level above the prices.
A better entry point would have been at Point B when markets had broken above the
access panel resistance level and the trend suite EMA. See how the PVA bars in the
volume suite indicator were long and green, then blue? This was a sign of the major
market players increasing trading volume and moving the markets in their direction.
For a short-term trader, they might have closed the trade at Point C when the candles
suite turned grey, signaling consolidation, which would have been fine, but a long-term
trader would observe how prices were still above the trend suite EMA and held on. A
good sign of a trend reversal is when the candles suite turns red and the volumes suite
Was the article useful for you? 4.5 (2)
does the same. Since neither of these happens at Point C, you could have held on until
Point E.
Forex Strategies
Point F was a sure trend reversal when prices went below the trend suite 0 indicator, and
the volumes suite showed a tall red bar – all signs of bearish sentiment. You will also
notice that
Add there was very little trading volume starting from Point E, showing that the
comment
bulls were no longer interested in the prices going higher.
zoha
PVSRAkhantechnical
2018.05.16 am31 08:16
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choppy market. It is not a problem as long as the market is trending and the system is making more
listen as an expert explains it:
money than it loses. Such a system can be profitable for several months and you would be happy
with it. BUT... PREPARE FOR THE WORST... Market change over time. A well designed system
starts with trend analysis to stay away from potentially losing trades. There are two problems of how
a Forex system recognizes the trend. PROBLEM: FALSE "STRONG TREND" INDICATION. The
system responds only to immediate price action. An explosive price movement that is usually the
result of news release is tempting people to jump in and make a profit. It looks like a "strong trend",
but what usually happens next is a hard fall. To avoid falling into this trap, check for the SOLUTION
to find a REAL trend: == http://www.forextrendy.com?vgcvasdiugf9g87346 SECOND PROBLEM:
TREND RELIABILITY Most systems use various indicators to determine the trend. Actually, there
is nothing bad about using indicators. One Simply Moving Average can do the job. The problem
comes with the question: "Is the market trending NOW?" Whether the market is trending or not
trending is not like black and white. The correct question is: "How well the market is trending?" And
here we have something called TREND RELIABILITY. Trends exist and they can be traded up and
down for a profit. You have to focus only on the most reliable market trends. "Forex Trendy" is a
software solution to find the BEST trending currency pairs, time frames and compute the trend
reliability for each Forex chart: == http://www.forextrendy.com?vgcvasdiugf9g87346
Reply Report violation
anthony jhon 2018.05.16 am31 10:49
Do you think that to dramatically improve your success rate you have to read tons of thick books,
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"how well" the market is trending to avoid very short-term trends. STOP hunting the market for
every potential trade. Pick only the best trending pairs and time frames and DO NOT take any
trading signals in the choppy market (unless you know exactly what you are doing). Successful
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Reply Report violation
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5/9/2019 PVSRA Forex trading system

Principles of the PVSRA trading system

So, to recap the PVSRA principles:

Determine when prices consolidate around critical S/R levels

Technical indicators for the PVSRA system

Working the PVSRA trading system

Forex for Beginners

For big investors

All about Forex brokers

Bankruptcy of Forex brokers

Nihilist holy grail trading

Hama scalping system

China Forex Expo 2017

Which Are The Most

You might also like