At a time when the market is not fueled by fundamental factors, there comes a period of war between the “bulls” and “bears”, who are trying to downturn the market in volumes of capital so as to hook on the feet of competitors. The Bulls and Bears strategy is based on combined indicators that allow us to assess market sentiment and determine the number of buyers (“bulls”) in a falling market or sellers (“bears”) in the market at the moment of growth. The indicator refers to oscillators and also helps to assess the current market volatility.
Bulls and Bears Strategy
The Bulls & Bears indicator does not belong to the base ones, so you need to find its latest optimized version on the Internet and write the template in MT4. Trading timeframe is H1, the strategy is not suitable for scalping. Currency pair – EUR / USD. The indicator has a very simplified form of settings – you only need to pick up the MA period, and period 14 is recommended for the Bulls and Bears for this strategy.
Conditions for opening a long position:
- trading time – 08.00 – 20.00 Eastern European time. In the Asian session, volatility decreases and the volume of trading is relatively reduced, because for this indicator this time interval is undesirable;
- the red line of the indicator has long been located above the blue (precondition) – indicated by a yellow oval;
- The blue line crosses the red one upwards (main signal);
- after the lines crossed and the candle where the intersection occurred closed, the difference between the lines should not exceed 1000.
Stop loss is placed at the minimum of the previous candle. We close 50% of the position after closing the candle where we entered the market. The remaining position is insured by trailing with a length of 7-10 points.
Opening a sell position is the opposite. A prerequisite is the long-term location of the blue line above the red one without intersections. As soon as the red line crosses the blue one upwards, we open a position on the next candlestick.
A few additional tips:
- the indicator formula is fundamentally different from the formulas of classic oscillators, therefore combining it with other instruments is undesirable. By doing so, you will confuse yourself even more;
- for an hour after the news (statistics) with the highest importance on the economic calendar, trade is not conducted.
Strategy Bulls and Bears suitable for novice investors who do not pursue profits and are trained to understand the principles of the market. The number of signals is small, so the strategy is recommended as an additional one. If you have already earned your first profit using this strategy, share your opinion in the comments!