Hello, ladies and gentlemen, forex traders! Today we will talk about the famous trading method. PVSRA. There will not be any clear-cut rules that the author himself draws attention to — such an approach provides an opportunity for the trader’s personal vision to manifest.
Actually, there are many strategies based on this methodology, and one of them (TVT20) we will consider today. It should be noted here that the system (the PVSRA trading method) requires experience in working with it – that is, the skills of the trader play a large role. The system is based on calculating the maneuvers of large players and, most importantly, the direction in which they are gaining positions. It will be difficult, but interesting)
Characteristics of the vehicle
First of all, I would like to thank the author of this method – Traderathome. Initially, this technique appeared on the ForexFactory forum, but then, due to the charges of commerce (not much substantiated), the author decided to create his own forum http: //
The essence of the PVSRA method
Let’s begin with the very essence of the method, its theses and premises. PVSRA is an abbreviation: P – Price (Price), V – Volume (Volume), S – Support (Support), R – Resistance (Resistance), A – Analysis (Analysis).
So imagine, there is some price chart. Imagine you are a regular trader and you open a position of 10-20 lots. But, besides the usual traders, there are still large players on the market: various funds, banks and
Therefore, in order not to cause a strong price increase in the direction of the position, it can be said, to hide their intentions, the big players enter the market in situations that are called “taking stops”, or on corrections.
Also, sometimes similar situations are artificially created when the price drops sharply and even breaks through the previous minimum. Pending sell orders and stop losses of those who held buy positions are immediately activated here – all this is additional liquidity for a large player who wants to buy a large amount of currency. In this case, when there are a lot of offers for sale, the price will not move anywhere much – a very convenient situation for a large player.
Our task is to determine what the big players did earlier on the chart, and try to guess what will happen next. That is, if we see that there was a place to take out stops and collect Sell-liquidity, then we assume that the big players are gaining a position to buy and, accordingly, are looking for opportunities for purchases. On the contrary, if the major players are gaining positions for sale, then we are looking for sales opportunities.
The removal of stops must be accompanied by a significant amount. Increasing volumes at the lows – buying opportunities, high volumes at the highs – sales opportunities.
As we remember, there are round price levels, for example,
Also, pay attention to the release of news. But not on the news itself, since you probably already noticed that the price often goes in the opposite direction of the news. In this strategy, we consider the news as a possible driver for the price. For example, if before this the big players were actively picking up purchases, then, accordingly, there would be a powerful upward impulse.
Opening the archive with indicators you will find two folders: one with the White Charts postscript, the other – Black Charts. The first is for the white version of the graphs, the second for those who prefer the dark version. To install, you need to copy the contents of the folder to the terminal data directory. We have detailed instructions for installing strategies on our website.
Next, open any chart, call the context menu with the right mouse button and select our template. The description of each indicator will be attached a separate file.
PVRSA Trade Levels
The indicator does not indicate support-resistance levels, as you might have thought, but shows data on your positions: stop-loss, take-profit, average profit and
PVRSA Access Panel
In the upper left corner, the indicator shows a plate with the current value of the spread, the current range, swaps and the time until the candle closes. Also, the indicator draws round horizontal levels on the chart, the time of trading sessions (Lo – London Open, Lc – London Close), and the value of the current spread relative to the average – the green point means that the spread is in normal values. For more information about setting the indicator, see the training manual.
PVSRA News Panel
This, as you probably guessed, is a panel with future news. In the settings, you can immediately turn off the display of news with medium and low influence, as the latter have little effect on the market.
PVSRA Trends Set
The indicator consists of three moving averages – their values are signed at the bottom of the screen. If desired, you can change the periods, the type of averages and the position of the information label on the chart.
PVSRA Candles Set
The indicator is responsible for coloring candles in the colors of the volume histogram. Green is the climax of purchases, red is the climax of sales. These terms are explained in detail in the VSA methodology. Purple and blue colors indicate the situation when the candle volume is greater than or equal to 150% of the average volume over the previous 10 candles of the current TF. The bull signal is marked 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 alert MT4.
PVSRA Volumes Set
In fact, it has the same purpose as Candles Set, but is displayed in a separate window of the graph, in the form of a histogram. In comparison with the indicator on the main chart, the histogram is more vivid, as it allows you to compare the values of the volumes with the previous ones.
Trading system TVT20
We now turn directly to the system, that is, to the more pronounced and clear rules based on the method described. So, to enter, we need to comply with certain requirements:
- The presence of a clear trend, that is, an acute angle of inclination of the sliding 50;
- Enter the direction of the three medium. That is, the indicators should move in a coordinated manner, in one direction;
- Next you need to wait for a strong movement against the trend, with the removal of stops for the level and increased volume.
After the removal of stops, the price should make something like a zigzag movement. That is, we need to move along the old trend, a small pullback to the average and the continuation of the trend. We enter the trade in the direction of the trend when the next round level is broken.
Take profit of the 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, because often the feet stand, and an extra pair of points is unlikely to decide something. Here your business is, in my opinion, better to have a hard stop.
From additional rules:
- We do not trade on Friday, since at this time there are a lot of reports and major players open positions;
- We add to the position according to the rules of the strategy. In general, it is recommended to enter fractions – that is, a bunch of orders. We make topping only near the stop-loss;
- We trade in the London session.
The number of entries according to the strategy can be rather big, therefore money management is quite conservative. Trade better with a fixed lot, at the rate of
Examples on the chart
The search for the setup for this system must begin with the removal of stops. Although, if you follow the author, he recommends starting with defining a clear trend. So, the removal of stops is accompanied by a large volume. Here you can not pay special attention to the specific color of candles, the main thing – the presence of large volume. That is, suit all colored candles.
Next, we wait for the return to the trend and roll back to the average. The price at the same time consolidates under the round level, and this, as we remember, means preparation for long positions. At this level, we set a Buy Stop order. Stop-loss set at a local minimum, on a pullback to the average. Take profit on the system of 20 points. However, again, many people apply both trailing and higher profit values, or other types of closures.
Here we also have the removal of stops at the average, then a return to the trend and correction. However, the price has broken through the round level before the correction, and according to the rules of the system we must enter the breakdown. Therefore, we skip this entry.
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, which means that entry into purchases is excluded.
Here we have a takeaway stop with a breakdown of a circular level. After returning to the trend and retracement to the average, we can consider entering the sale. Also, a small takeaway occurred after the activation of the order. As a result, a fairly long consolidation above the level bore fruit, since subsequently there was a fairly strong shot down.
Carrying out stops – this is such a sharp and short-term movement for the medium with a return, accompanied by a large volume. Thus, it is possible to look out for opportunities on the chart purely visually.
Sometimes, even if there are no obvious stops on the chart, other signs of accumulating volumes can be used. For example, here we have a long consolidation above the level of 50. In this case, we set a stop loss either at the nearest maximum or at a round level. The second option is more logical, since during consolidation the price just reached the level. Take profit on the system of 20 points, but, again, you can use different options: trailing, partial closure, or to wait for the climax of sales.
The following example can be said bookish. Here the naked eye noticeable removal of stops, with a huge amount and size of candles. Then there is a rollback to the average, and after consolidation, you can enter the market on the breakdown level of 25.
Examples of complex transactions
Let us consider several complex logon options from the author’s website. As mentioned earlier, this method requires experience, so it is on the forum that you can find really complex and interesting examples of transactions.
In the first example, we see the removal of stops in a downward movement. At the same time, the entrance here is carried out without waiting for the return of the trend and rollback to the average – experienced comrades enter right away at the stops. Accordingly, the earning potential is higher. The stop loss is placed at the maximum of the stops, and the profit is fixed after about 20 points.
Further, an example from the author of the technique. Again, the entrance to the removal of stops, while on a small volume. But when the price reverses, it already assumes that there will be a continuation of the bullish movement – consolidation took place below the level of 50. Therefore, the order is closed in advance, approximately with a profit of 25 points.
Here, the entry is already after consolidation, below the level of 50. Take profit is small, about 10 points. The author explains this reinsurance before the news release.
Another interesting example. Log in here is a set of orders for the removal of stops. The arrows on the chart indicate the moment of recruitment of Sell-liquidity. But keep in mind that to trade so – you need experience.
Again, an example of how the screenshots were taken by the screenshots for a buy position, and then closed all the orders at one point.
Another interesting example. Rectangles mark the moment of liquidity recruitment. The author drew attention to the accumulation of a bearish volume, and the resulting divergence – the price goes up, and the volume falls. Then we should consolidate above level 50 as the apogee. The entrance is carried out after the breakdown level.
In the last example, note that the entrance to the market is carried out after the opening of New York. Therefore, if you trade according to the method, then your interpretation of the market situation already plays a role. The author of the screenshot drew attention to the consolidation above level 50 (white arrow). Position recruitment is gradual, with several orders. The closure occurred on consolidation below level 50, that is, in preparation for purchases.
In any case, at the beginning try using the ready-made TVT20 system, where there are more rigid rules, 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 this way 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 the same stops of the stops actually occur, how the preparation for sales and purchases takes place, and what prerequisites follow.