The BullDozer trading system for trading Forex currency pairs belongs to the class of indicator strategies. It is based on two types of technical indicators.
Moreover, all these indicators can be found in the Metatrader 4 trading terminal, and therefore there will be no problems with finding them. For trading, the most liquid currency pair will be used, that is, of course, EURUSD, while taking the hourly time period.
The following technical indicators will be used.
1. Moving with a period of 21 and an exponential weighting method.
2. Exponential moving average with a period of 70. Both averages will be applied to the closing prices, which are designated as “close” in the terminal.
3. The Awesome Oscillator indicator with standard settings will also be used.
As you can see, all indicators are standard and are available in the arsenal of the trading platform by default. To open a long position (that is, a deal to buy an instrument), the following conditions must be met:
First , it is necessary that the closing price be above the slow moving average (the one with an averaging period of 70).
Second , the fast moving average must be below the slow moving average.
Third, the bars of the Awesome Oscillator histogram should be green. Moreover, during the eight previous bars of the indicator, there must be an upward trend. The location of the previous bars relative to the zero level does not matter. That is, the indicator may be even lower, the main thing is that there is an upward trend.
When all these nuances are fulfilled, we open a deal to buy a currency pair. After opening a trade, it places a stop loss order at a distance of 70 points from the opening price of the trade. We do not need take profit in this system.
However, if the price moves 70 points upwards, it is better to close part of the position. A trade should be closed if the Awesome Oscillator indicator crosses its zero level downward, or if a sell signal is generated, which is carried out under opposite conditions.