Hello, dear visitors of the exchange trading portal Investlb.com. I continue to acquaint you with the unique tactics to trade the currency markets based on the modified indicators. The current strategy Bulls and Bears work on only one indicator, but this indicator is specially designed on the basis of other more simple tools, and I gladly will share it with you.
Strategy Bulls and Bears
The Bulls&Bears includes two well – known strategies: index is the bulls power and the bears power. Both these indexes are calculated based on the difference between the maximum (for the bulls) and lows (for the bears) candles and moving average with a fixed period. Combining these two options together gives you the opportunity to obtain an indicator which quite accurately shows what sentiments prevail in the market at the moment. Its analysis allows to calculate the exact point to enter the market, because the oscillator additionally shows current market volatility.
- Trading interval – 1 hour;
- Currency pair – Euro/USD;
- the Bulls&Bears indicator – (МА_Period = 14). Option of the moving average can be individually chosen, but I suggest the value of 14 that is already honed on this strategy. You can choose any color of indicator lines displaying the relative amount of bulls and bears. In our case, red bears, blue bulls;
- trading terminal – Metatrader 4.
Download the archive with the strategy and indicators used
The conditions for opening a buy transaction:
- recommended time to trade – 08.00-20.00 Eastern European time;
- the red indicator line for a long time did not overlap with the blue line and stayed above it;
- the blue line crosses red line upwards;
- after the close of the candle confirming the transfer of blue line up, the difference between the values of lines should not exceed 1000.
Enter the market on the next candle, after the fulfilment of all these conditions. The position of the insured with a stop loss of length 30 points from the low of the previous candle. Strategy the Bulls and Bears may be supplemented by additional simple indicators, however, remind that the lower the trading risk, the less points of entry that takes the indicator.
Exiting the market normally: after the candle where we entered the market closes, fix half of the profit, stop loss move to breakeven. Set trailing stop with a length of 7-10 points and a profit booster to the end. In the worst case half of the income we have received, at best – will be able to increase it a little income until such time as the price reverses in the opposite direction.
Conditions for opening sell positions mirrored the same: the line indicator for a long time do not overlap, the blue line is above red but now the red line goes up from the bottom crossing the blue. After the close of the candle the difference between the indicator values should not be more than 1000.
Bulls and Bears strategy works well on this currency pair, but you can try it and other assets – in some places the profitability results were better, somewhere – worse. Don’t be afraid to experiment and make money with Investlb.com!