The Bull and Bear Balance (BBB) indicator is a trading algorithm based on the operation of two Forex indicators included in its standard set. Its calculations are based on the use of trend indicators, namely Bulls Power and Bears Power, the calculations of which, in turn, are aimed at determining the strength of the current market trend and its current direction, which determines the direction of the trade, which opens during a certain trend. It is presented in the lower window of the price chart in the form of a histogram, the color and direction of which determines the strength and direction of the trend in the market, thereby allowing it to open a certain position.
The Bull and Bear Balance indicator is suitable for trading any currency pair, on any timeframe.
The settings of the Bull and Bear Balance indicator consist of several sections, which in turn are responsible for its general functioning. Thus, the Input Parameters section of the indicator is responsible for its technical work, the Colors section is responsible for its visualization, and the Levels section is for adding to its window of additional signal levels.
-Period - value of the indicator calculation period. The default value is 20.
-Method - type of smoothing of moving averages of the indicator. The default value is Simple.
-Smoothing period - smoothing period for indicator calculations. The default value is 30.
-Smoothing method - type of calculation smoothing applied. Default is Simple.
Due to its simple visualization, the Bull and Bear Balance indicator is easy to use. In addition, the algorithm of its application is similar to using other histogram indicators. To open a certain trade, one should take into account the direction and strength of the current trend, which in turn is determined by the indicator values, namely and the color of the histogram columns. If the indicator determines an upward trend, a buy trade is opened, if the trend is downward, a sell trade. If the current trend changes, the trade should be closed.
Signal for Buy trades:
- At least three bars of the histogram have a color with a growth value and are located above level 0. In this case, a new bar is formed above the previous one.
Upon receipt of such conditions that characterize the presence of an upward trend, a buy trade can be opened. If the current trend changes, namely when an opposite signal is received from the indicator, the trade should be closed. At this moment, one should consider opening new trades.
Signal for Sell trades:
- The histogram of the indicator is colored with the value of the fall and is below the signal level. At the same time, its new columns are formed below the previous ones.
A sell trade can be opened immediately upon receipt of such conditions. At this moment, the presence of a downward trend is determined in the market. Upon receipt of the opposite conditions, namely, when the color and direction of the histogram change, the trade should be closed. At this moment, the current trend may change in the market, which in turn, it will allow considering the opening of new trades.
The Bull and Bear Balance indicator is a very effective trading algorithm, the calculations of which are based on the use of forex indicators, the effectiveness of which has been proven by time. The indicator is very easy to use and therefore suitable even for beginners who can improve their trading skills with preliminary practice on a demo account.