Price movement is much like a tug of war. On one side are the bulls, on the other side are the bears, and price is the rope that is being pulled back and forth. Both sides are trying to impose their will on the market. Both sides would want to pull price in their direction.
Bulls and bears are not like a team where members have loyalty to one side. Instead, it is just merely a market sentiment. A bullish trader today may be bearish tomorrow. These shifts in sentiments coming from millions of traders and market participants is the reason why the market fluctuates erratically. The market is fickle. The crowd could change sentiments in an instant. This is the reason why it is very hard to predict market movements.
However, there are instances when shifts in market sentiments are very palpable. During these scenarios, market sentiments are clearly tilted to one side, clear bullish sentiment during an uptrend or bearish sentiment during a downtrend.
It is during these trends when traders make most money. Traders who can anticipate these strong market sentiment shifts are usually the ones who could trade from the beginning of the trend up to the end.
Bulls Bears Super Trend Forex Trading Strategy makes use of indicators that could help us anticipate these shifts in market sentiment leading to a fresh trend. It also aligns its trade entries with the long-term trend to ensure a higher probability trade setup since it is going with the current flow of the market.
Bears Bulls Power
Table of Contents
Most indicators measure trend direction based on one gauge. It is usually by measuring momentum based on price movements. Although these types of indicators could also work well, there are also other ways to indicate price movements based on multiple gauges.
Bears Bulls Power measures the underlying strength of a bullish or bearish momentum using two separate measures. It then combines the information coming from the two indicators and fuses it into one oscillating indicator. The result is a reliable indication of the current market sentiment.
This indicator is displayed as an oscillating indicator. Positive bars, which are colored green, indicate a bullish sentiment, which could lead to a bullish trend. Negative bars, which are colored red, indicate a bearish sentiment, which could lead to a bearish trend. Crossovers from negative to positive or vice versa indicate a shift in market sentiment, which could also be used as an entry signal or filter.
Super Trend is a trend-following indicator which was developed to identify trend direction and trend reversals.
This indicator is plotted as a line on the price chart and their placement indicates the current trend direction. Lines that are plotted below price indicate a bullish trending market, while lines that are plotted above price action indicate a bearish trend.
The line also changes color whenever it detects a change in trend direction indicating a potential trend reversal. These changes in color could be used as an entry signal.
The Super Trend indicator is based on the Average True Range (ATR). The ATR is then multiplied by a multiplier set by the trader. The line is then shifted away from price based on the result of the ATR and its multiplier. Trend reversals are detected whenever price breaches these markers.
Because of the nature of how the Super Trend is derived, this indicator factors in both momentum and volatility when observing for the trend. The result is a logically sound trend reversal signal which is highly reliable.
This trading strategy provides trade entries based on market sentiment shifts and momentum, which could lead to a fresh trend. It also aligns its trades with the long-term trend in order to filter out low probability trade setups.
The 200-period Exponential Moving Average (EMA) is used to filter out trades that are not aligned with the long-term trend. The long-term trend is based on the location of price in relation to the 200 EMA, as well as the slope of the 200 EMA.
Trade entry signals are generated whenever there is a confluence of trend reversal signals coming from the Super Trend indicator and the Bears Bulls Power indicator.
On the Super Trend indicator, the Super Trend line should shift across price action indicating a trend reversal aligned with the long-term trend.
On the Bears Bulls Power indicator, the bars should crossover zero indicating a shift in market sentiment aligned with the long-term trend.
- 200 EMA (green line)
- Nbr_Periods: 10
- Multiplier: 3.0
- MyPeriod: 50
Preferred Time Frames: 1-hour and 4-hour charts
Currency Pairs: major and minor pairs
Trading Sessions: Tokyo, London and New York sessions
Buy Trade Setup
- Price should be above the 200 EMA line.
- The 200 EMA line should be sloping up.
- The Bears Bulls Power bars should cross above zero.
- The Super Trend line should shift below price action and should change to lime.
- These bullish signals should be closely aligned.
- Enter a buy order on the confirmation of the conditions above.
- Set the stop loss on the fractal below the entry candle.
- Close the trade as soon as the Super Trend line shifts above price and changes to red.
- Close the trade as soon as the Bears Bulls Power bar crosses below zero.
Sell Trade Setup
- Price should be below the 200 EMA line.
- The 200 EMA line should be sloping down.
- The Bears Bulls Power bars should cross below zero.
- The Super Trend line should shift above price action and should change to red.
- These bearish signals should be closely aligned.
- Enter a sell order on the confirmation of the conditions above.
- Set the stop loss on the fractal above the entry candle.
- Close the trade as soon as the Super Trend line shifts below price and changes to lime.
- Close the trade as soon as the Bears Bulls Power bar crosses above zero.
This trading strategy is a working trend reversal strategy.
It profits from the market because of the huge gains it could accumulate during trending market conditions. However, it also takes patience trading this strategy as trade signals do not come too often. Trades are also held quite long because this trade is geared towards long-term trends.
It is also beneficial to identify trade direction based on price action, channels, and trend lines on the higher time frames. Trades that are aligned with the long-term trend tend to work better using this strategy.
Forex Trading Strategies Installation Instructions
Bulls Bears Super Trend Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.
The essence of this forex strategy is to transform the accumulated history data and trading signals.
Bulls Bears Super Trend Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust this strategy accordingly.
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How to install Bulls Bears Super Trend Forex Trading Strategy?
- Download Bulls Bears Super Trend Forex Trading Strategy.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 strategy
- Right click on your trading chart and hover on “Template”
- Move right to select Bulls Bears Super Trend Forex Trading Strategy
- You will see Bulls Bears Super Trend Forex Trading Strategy is available on your Chart
*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.
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