PVSRA Trading method - Look at the chart with the Market Maker Eyes

Hello ladies and gentlemen, forex traders! Today we will talk about the famous trading method of PVSRA. There won’t be any clear rules, which the author of the methodology pays attention to - this approach gives an opportunity for the personal vision of the trader to manifest.

Actually, there are many strategies based on this technique, and one of them (TVT20) we will consider today. It should be noted that the system (PVSRA trading method) requires experience with it - that is, the trader’s skills play a big role. The system is based on calculating the maneuvers of major players and most importantly - the direction in they gain positions in. It will not be easy, but interesting)

Strategy characteristics

Platform: Metatrader 4
Currency pairs: any
Timeframe: M15-H4
Trading time: London session
Recommended brokers: Roboforex, Alpari, AMarkets

Help section

• Market-makers on Forex
• Pending orders
• Trading strategies installation instructions

Gratitude

First of all, I would like to express my gratitude to the author of this technique - Traderathome. Initially, this technique appeared on the ForexFactory forum, but then because of accusations of commerce (little-grounded), the author decided to create his own forum http://pvsrainternationalwithtraderathome.com/. The most valuable section is the Trading Room, where you can see examples of transactions by methods, and how it is understood by various traders. Also, on ForexFactory you can find many ready-made strategies based on this methodology. That is - people take a method and interpret it under their own vision of the market.

The essence of PVSRA

Let’s start with the very essence of the method, its theses, and premises. PVSRA is an abbreviation: P-Price, V-Volume, S-Support, R-Resistance, A-Analysis.

So, imagine there is some price chart. Imagine you are an ordinary trader and you open a position in 10-20 lots. But, in addition to ordinary traders, there are large players on the market: various funds, banks, etc. It is not easy for them to open a major position because entering the market they simultaneously make the price rise. At the same time, liquidity is not rubber, so the position itself is opened not at one price, but in parts, at ever less favorable prices. Same as with potatoes on the market - with the increase in demand, the price rises.

Therefore, in order not to cause a strong rise in prices towards the position, one can say, to hide their intentions, large players enter the market in situations that are called “stopovers”, or on corrections.

Also, sometimes such situations are artificially created when the price falls sharply down and even breaks the previous low. Here, deferred orders for sale and stop-loss orders of those who held positions to buy immediately activate - all this is additional liquidity for a large player who wants to buy a large amount of currency. In this case, when there are many offers for sale, the price will not move much anywhere - a very convenient situation for a large player.

Our task is to determine what the big players have done earlier on the chart and to try to guess what will happen next. That is, if we see that there was a take-out of stops and the collection of Sell-liquidity, then we assume that large players are gaining a position on the purchase and, accordingly, are looking for opportunities for purchases. Conversely, if large players are gaining positions for sale, then we are looking for opportunities for sales.

Removal of stops should be accompanied by a significant volume. Growing volumes at lows - opportunities for purchases, high volumes at highs - opportunities for sales.

As we recall, there are round price levels, for example, 1.3300, and intermediate ones: 1.3250. Together with them, the levels 75 and 25 are used in the system. So, consolidation under the round level is preparation for long positions, consolidation over the level - preparation for short positions.

Also, pay attention to the time of news. But, not on the news itself, since you probably already noticed that the price often goes to the opposite meaning of the news side. In this strategy, we view news as a possible driver for the price. For example, if the large players were actively buying before, then there will be a powerful upward momentum.

Indicators

Opening the archive with the indicators, you will find two folders: one with the White Charts annotation, the other - Black Charts. The first is for the white version of the charts, the second one is for those who prefer the darker ones. To install, you need to copy the contents of the folder to the terminal data directory. We have detailed instructions on how to install strategies on the site.

Next, open any chart, call the context menu with the right mouse button and select our template.

PVRSA Trade Levels

The indicator indicates not support-resistance levels, as you might think, but shows data on your positions: stop-loss, take-profit, average profit, and so on. If you close the deal, the indicator will draw a dotted line to the exit point.

PVRSA Access Panel

In the upper left corner, the indicator shows a label with the current spread value, the current range, swaps and the time before the candle closes. Also, the indicator draws on the graph round horizontal levels, the time of trading sessions (Lo - London Open, Lc - London Close), and the value of the current spread relative to the average - the green dot means that the spread is in normal values.

PVSRA News Panel

As you probably guessed, this is a panel with future news. In the settings, you can immediately turn off the display of news with medium and weak influence, as the latter slightly affect the market.

PVSRA Trends Set

The indicator consists of three moving averages – their values are at the bottom of the screen. If desired, you can change the periods, the type of averages and the position of the information inscription on the chart.

PVSRA Candles Set

The indicator is responsible for coloring the candles in the colors of the volume histogram. The purchases are marked in green, sales – in red. Purple and blue colors indicate a situation where the candle volume is more than or equal to 150% of the average volume for the previous 10 candles of the current TF. The bullish signal is marked in blue, and the bear signal is purple. Together with the coloring of the candle, you will receive an alert in the form of a regular MT4 Alert.

PVSRA Volumes Set

In fact, it has the same function as the Candles Set, but it is displayed in a separate chart window, in the form of a histogram. In comparison with the indicator on the main graph, the histogram is more intuitive, since it allows you to compare the values of volumes with the previous ones.

TVT20 Trading system

Now, let’s move directly to the system, that is, already to more pronounced and clear rules based on the described method. So, to enter, we need to meet certain requirements:

• The presence of a clear trend, that is, an acute slope of the MA50;
• Enter in the direction of the three averages. That is, the indicators should move incoherence, in one direction;
• Next, you need to wait for a strong move against the trend, with stop losses beyond the level and increased volume.

After the removal of stops, the price should make a semblance of zigzag movement. That is, we need to move along the old trend, a small rollback to the average and the continuation of the trend. We enter into the transaction in the direction of the trend with the penetration of the next round level.

The take-profit of a deal is 20 points. Stop-loss set for the second rollback (rollback to the average). Nevertheless, the author recommends not to put a stop, but to have it on your mind, as they are often knocked out, and an extra couple of points are unlikely to change anything. But, it is your business, in my opinion, it is better to have a hard stop.

Some additional rules:

• We do not trade on Friday because at that time there are a lot of reports and big players opening positions;
• We add to the position according to the rules of the strategy. In general, it is recommended to enter with a bunch of orders. You can buy more only near the stop-loss;
• Trade in the London session.

The number of entries for the strategy can be quite large, so money management is quite conservative. Trading is better with a fixed lot, at the rate of 0.01 of a lot for every $ 500 deposit.

Examples on the chart

Search for the setup for this system should start with the removal of stops. Although, if you follow the author, he recommends starting with the definition of a clear trend. So, the removal of stops is accompanied by a large volume. Here, you don’t have to pay special attention to the specific color of the candles, the main thing - the presence of a large volume. That is, all the colored candles will work.

Next, wait for a return to the trend and a rollback to the average. The price is consolidated at a round level, and this, as we remember, means preparing for long positions. At this level, set the Buy Stop order. Stop-loss set at the local minimum, on rollback to the average. Take-profit by the system is 20 points. However, again, many apply both trailing and higher profit values, or other types of closures.

Here, we also have stops with a move beyond the average, then a return to the trend and correction. However, the price broke through round level before the correction, and according to the rules of the system, we must enter the breakdown. So, we skip such an entrance.

There was a moment with the removal of stops, accompanied by large volumes. However, if you pay attention to the slow (yellow) average, then it is clearly directed downwards, so the entrance to purchases is excluded.

Here we have a stop with a breakdown of the round level. After returning to the trend and rolling back to the average, we can consider the entrance for sale. Also, a small take-out occurred after the order was activated. As a result, a fairly long consolidation over the level has yielded in benefits, since subsequently there was a fairly strong shot down.

Breaking of stops is a sharp and short-term movement beyond the average with a return, accompanied by a large volume. Thus, you can look at the graph for the opportunity to enter.

Sometimes, even if there is no obvious place of breaking the stops in the chart, you can use other signs of accumulating volumes. For example, here we have a long consolidation above the level of 50. Stop-loss, in this case, is set either at the nearest maximum or round-level. The second option is more logical since, during the consolidation, the price just reached the level. Take profit on the system of 20 points, but, again, you can use different options: trailing, partial closing, or wait for the culmination of sales.

We can say that the following example is like from the book. Here, with the naked eye, breaking of stops with a huge volume and size of candles is noticeable. Then there is a rollback to the average, and after consolidation, you can enter the market at the 25 breakdown level.

Examples of complex transactions

Let’s consider some difficult options of entry from the site of technique’s author. As mentioned earlier, this method requires experience, so it is possible to find really complicated and interesting examples of transactions on the forum.

In the first example, we see the removal of stops in the descending movement. At the same time, the entrance is carried out here without waiting for the return of the trend and a rollback to the average - experienced guys enter immediately on the removal of stops. Accordingly, the earnings potential is higher. The stop-loss is placed for the maximum of stops, and the profit is fixed after about 20 points.

Next, an example from the author of the technique. Again, enter on the removal of stops on a small volume. But, when the price unfolds, it already assumes that there will be a continuation of the bullish movement - there was a consolidation below the level of 50. Therefore, the order closes in advance, with a profit of about 25 points.

Here, the entrance is already after consolidation, under level 50. Take-profit is small, about 10 points. The author explains this by reinsurance before the news release.

Another interesting example. The entrance here is carried out by a lot of stop orders. Arrows on the chart indicate the timing of the set of Sell-liquidity. But, remember, in order to trade like this, you need experience.

Again, an example of how the author of a screenshot typed a buy position on stopovers, and then closed all the orders at one point.

Another interesting example. Rectangles marked the moments of a set of liquidity. The author drew attention to the accumulation of bearish volume, and the resulting divergence - the price goes up, and the volume falls. Next, we should consolidate above level 50 as the apogee. The entrance is carried out after the breakdown of the level.

On the last example, note, the entrance to the market takes place after the opening of New York session. Therefore, if you trade by this method, then your interpretation of the situation in the market is already playing a role here. The author of the screenshot drew attention to the consolidation above level 50 (white arrow). The set of positions is gradual, with several orders. The closure occurred at consolidation below the level of 50, that is, in preparation for purchases.

Conclusion

In any case, in the beginning, try using the ready TVT20 system, where the rules are more stringent, and then try your own variations based on the described PVSRA method and your experience. The main thing is to understand the general idea and concept - why it happens so, and not otherwise. By the way, if you understand this method, you will already look at the charts in a completely different way. You will understand why those same stops actually work out actually, how preparations for sales and purchases are carried out, and what preconditions follow.

Download PVSRA strategy files

Regards, Michael

ForexTraderPortal.com