When 80% Are Buying, I Sell — This Indicator Shows Why

Most traders only look at price, but price alone can be very misleading. You can see a strong bearish breakout candle and think the market is going to keep pushing down, but then suddenly, it reverses. This happens because you cannot see what is really happening behind that candle. The long-slash-short ratio by BigBeluga does something most indicators on TradingView cannot do. It shows you who is actually winning between buyers and sellers, so instead of guessing during breakout trades, you can clearly see who is in control. In this video, I will show you how it works and how to use it to find good trade setups. Make sure you watch till the end so you don't miss anything. Now, let's get it on your chart. Open TradingView and click on the Indicators tab at the top of your screen. In the search box, type long-slash-short ratio, then select the one by BigBeluga. Once you add it, close the search box. The teal bars show buyers, while maroon bars show sellers. When teal stays above the 50% line, buyers are in control. If the smooth line turns teal and slopes upward, momentum is increasing. When the ratio reaches extreme levels, like 80%, triangles appear, warning that the trend may be overextended and ready to reverse. For a buy trade setup, we are going to focus on a breakout trade on gold using the 1-hour time frame. First, we identify and plot our resistance level. This is the area where price has previously struggled to break above. The plan is simple. We wait for price to break this level, then we use the long versus short ratio indicator to confirm whether the breakout is strong enough to trade. Now, as price approaches and begins to break above the resistance, we shift our attention to the volume data. At this stage, we can see that the buy volume and sell volume are still very close to each other. There is no clear dominance. There is no strong gap between buyers and sellers. At the same time, the HMA momentum line is tilting downward and showing a maroon color, which indicates increasing sell pressure. Because of this, we do not take the buy trade yet. The breakout at this point is weak and lacks confirmation, so we stay patient and continue to observe price action. As price continues to move, we see it pushing back toward the resistance level again. This puts us on alert for another potential breakout. Now, price breaks above the resistance level again, but this time the conditions are different. When we check the volume, we can clearly see that sell volume is around 21%, while buy volume is about 78%. This shows strong buyer dominance and confirms a bullish sentiment. At the same time, the HMA momentum line has shifted. It is now above the 50 level and tilting upward, indicating that buying pressure is not only dominant, but also increasing in strength. With these confirmations in place, we can now take the buy trade during the breakout. Our stop loss is placed below the recent swing low to manage risk, and we aim for a 1 to 1.5 risk to reward ratio. If we allow the trade to play out, we can see that price continues to move in our favor and eventually reaches our profit target. For a sell trade setup, it is simply the opposite of a buy trade. First, we identify a support level on the chart. This is the area where price has previously held and reacted from. Once that level is clearly marked, the next step is to wait patiently for price to break below the support. Now, as price approaches the level, we watch closely. At this point, we can see price breaking through the support level, but we do not rush in immediately. We move to confirm the breakout using the volume data. Looking at the sell and buy volume, we can see that sell volume is around 79%, while buy volume is about 20%. This shows that sellers are in control and supports our bearish bias. Next, we check the HMA momentum line. We can see that it is showing a maroon color, tilting downward, and already trading below the 50 level. This confirms that selling pressure is increasing, and momentum is shifting in favor of the sellers. With all these confirmations aligned, we can now take our sell trade. The entry is taken on the close of the breakout candle to ensure the move is valid. The stop loss is placed just above the breakout candle to manage risk, and the target is set at a 1 to 1.5 risk to reward ratio. If we allow the trade to play out, we can see that price continues to move in our favor and eventually reaches the profit target. And that is how you use the long versus short ratio indicator to find high quality trades. Always check if the buy and sell percentage confirms the move before you enter a trade. Manage your risk properly, respect your stop loss, and always trade with a clear risk to reward plan. Take time to back test these setups before going live. If you found this video helpful, make sure to like, subscribe, and turn on notifications so you do not miss the next one. Thanks for watching, and I will see you in the next video.