Bulls
and Bears Signal is breakout system on two indicators on the chart.
The first to identify Bulls Bears Signal entry points. Second for the
final filter of signals - Average Directional Movement
Index
It remains only to formulate the exact rules for entering the
transaction.
Buy
signal
The
price breaks one of the lines of the Bulls Bears Signal indicator
from the bottom up.
Next,
we need to wait until the second candle also closes above the line,
which was pierced. That is, the price should not go beyond the line
again. In the meantime, we are waiting for confirmation (closing of
the second candle), look at Average Directional Movement Index
indicator that acts as a filter.
The
+ DI line should be above the –DI line. Lines should be far away
apart, in other words - the line + DI should go up and the line –DI
should go down. The third line of ADX should also strive up as strong
as the + DI line and be as close to line + DI, ideally almost merge
with it. If Average Directional Movement Index also confirms that the
price go up we enter the deal after closing the candle. It should
also be taken into account that after breaking through the indicator
Аverage Directional Movement Index may confirm the trend after
closing not second and third candles, sometimes after the fourth. If
so, then we all the same enter the deal. It is not necessary to enter
the deal immediately after breaking through Bulls Bears Signal
indicator lines most importantly wait
confirmations
from the indicator Directional Movement Index.
Summary
of long entry
Price
breaks the Bulls Bears Signal indicator line from the bottom up
We
are waiting for the closing of the second candle above the broken
line
Indicator
lines of the Directional Movement Index + DI and –DI strongly
diverged
while the ADX line is directed up and close to the + DI line
If
after closing the second candle, the Directional indicator
Movement
Index does not give a clear picture, we are waiting for the closure
of the next
candles.
Take
a look at the screenshot below.
The
price has broken the line (after that you will receive an audio
message - a signal)
Next,
we look at the basement indicator Directional Movement Index.
The
+ DI line began to go up from the –DI line and the ADX line rushed
up and eventually merged with the + DI line, an excellent entry into
the market. Here we went after closing the third or fourth candle.
Here
we would enter after closing the second candle. Lines + DI and –DI
are excellent parted and the ADX line is going up as much as the + DI
line, it practically located on it.
Sell
signal
Price
breaks the Bulls Bears Signal indicator line from top to bottom
We
are waiting for the closing of the second candle below the broken
line
Indicator
lines of the Directional Movement Index -DI and + DI are strong
diverged
while the ADX line is directed up and close to the -DI line
If
after closing the second candle, the Directional indicator
Movement
Index does not give a clear picture, we are waiting for the closure
of the next candles.
Price
broke the Bulls Bears Signal line. The –DI line went far from + DI
and the line
ADX
is almost on the –DI line. Here we would enter at the close of the
second candles.
Please
note that with a sell signal, the –DI line is above the + DI line,
on
the examples above the purchase was the opposite. And the ADX line
for all typesthe signal should be directed upwards, as it does not
show
trend
direction, but shows its strength.
Download
Bulls and Bears
indicators and template.zip
Copy
mq4 and ex4 files to your Metatrader Directory / experts /
indicators /
Copy
tpl file (Template) to your Metatrader Directory / templates /
Start
or restart your Metatrader Client
Select
Chart and Timeframe where you want to test your forex system
Right
click on your trading chart and hover on “Template”
Move
right to select Bulls and Bears.
You
will see Bulls and Bears
on
your Chart.
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