The DSS Bressert indicator is a momentum indicator designed for traders who want to make precise buy-sell decisions in forex and stock trading. It was developed by William Blau and Walter Bressert and is based on Bressert’s work in market cycles. The tool comes in two versions with some nuances between them, and its values are calculated using exponential double smoothing, similar to the stochastic indicator. The Bressert Scalper Improved is an updated version of the tool that provides traders with a clear overview of price swing positions, trend-reversal zones, and current trend conditions. This makes it a valuable tool for assessing accurate trade entry positions, and determining trend-reversal patterns, and potential exit points. In this article, we will explore how the Bressert Scalper Improved works and how traders can use it in their trading strategies.
What is the Bressert Scalper Improved?
The Bressert Scalper Improved is a Forex indicator designed to identify overbought and oversold areas with greater accuracy than other stochastic indicators. It is used by short-term traders, particularly scalpers, who operate on M1 and M5 timeframes. The indicator is based on double exponential smoothing and is faster in responding to price changes compared to other stochastic oscillators.
The Bressert Scalper Improved appears as a colored signals oscillator in a sub-trading window beneath the main MT4 activity chart. The bullish and bearish market momentums are distinguished based on the indicator value and the color of the signal curve. The overbought and oversold zones are represented by horizontal levels at 80 and 20, respectively. The Bressert Scalper Improved can be used not only to identify price reversals but also to spot price rebounds in already-formed trends, making it useful in both trending and ranging markets.
Bressert Scalper Improved Strategy
A potential strategy for the Bressert Scalper Improved indicator involves using its overbought and oversold levels in combination with buy and sell signals. When the Bressert Scalper Improved rebounds from 20 and turns blue, it may signal a shift to bullish momentum. In this condition, look for buy signals if the market is in an overall uptrend. Conversely, when the indicator level turns red and drops below 80, it may suggest a shift to bearish momentum. In this condition, look for sell signals in a downtrend market.
This strategy for the Bressert Scalper Improved indicator is a potential approach that traders may use to identify trading opportunities. However, traders should be aware that market conditions can change rapidly, and there is always a risk of unexpected events impacting the market. Traders should carefully consider their risk tolerance, trading experience, and financial goals before implementing any strategy.
Buy Signal
- Wait for the Bressert Scalper Improved to rebound from 20 and turn blue, indicating a potential shift to bullish momentum.
- Look for the first blue dot to appear on the chart in oversold territory (near the 20 level).
- You may open a long position when the above requirements are met.
- Set a stop loss for your position a few pips below the entry candle or according to your money management strategy.
Sell Signal
- Wait for the Bressert Scalper Improved to turn red and drop below 80, indicating a potential shift to bearish momentum.
- Look for the first red dot to appear on the chart in overbought territory (near the 100 level).
- You may open a short position when the above requirements are met.
- Set a stop loss for your position a few pips above the entry candle or according to your money management strategy.
Bressert Scalper Improved Pros & Cons
Pros
- The Bressert Scalper Improved indicator is designed to spot overbought and oversold areas with fewer false signals than other stochastic indicators.
- The indicator can be used in both ranging and trending markets, providing versatility for traders.
- The horizontal levels at 80 and 20 in the indicator window provide clear visual signals of overbought and oversold market conditions, making it easy to identify potential trade setups.
Cons
- The indicator is designed for short-term scalping trades, which may not be suitable for all traders.
- The indicator may generate false signals in choppy or unpredictable market conditions, leading to potential losses for traders who rely solely on the indicator’s signals.
- The indicator may not perform well in highly volatile or rapidly changing market conditions,
Conclusion
In conclusion, the Bressert Scalper Improved is a Forex indicator that is designed to spot overbought and oversold areas with less false signals than other stochastic indicators. It uses exponential double smoothing to respond quickly to price changes and provides clear signals in both trending and ranging markets. The Bressert Scalper Improved is particularly useful for short-term traders, as it is intended for M1 and M5 time frames. However, it is important to note that no trading strategy or indicator is foolproof, and traders should exercise caution and use proper risk management techniques when using this or any other trading tool.
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