Sliding Average with the Bear

The bearish strength indicator is one of the particularly effective tools aimed at identifying the current market sentiment, on the basis of which professional traders very often decide how to proceed.

Together with the moving average, it can then form a unique pair that ultimately provides traders with information about the most important trading factors, which are often very difficult to do without.

Strategy entry rules

Entering long positions

- do not enter

Entry into short positions

- Breaking (closing below the average) of the moving average from top to bottom

- Bears indicator goes from positive to negative values after being in positive values for at least 8 trading candles in a row (one enters only after closing a candle that meets all the set rules)

The chart below shows a situation where the moving average was broken after the Bears indicator was already 9 candles in positive territory, which is considered as an entry signal in today's strategy, based on which the next candle was opened to enter a short position (SL was placed above the moving average).

Note: The position is held until a break back above the moving average or until the SL is hit.

With a moving average and a bearish indicator it is possible to achieve a success rate in the range of 40-70%, where the final amount will depend not only on trading experience, but also on the appropriate choice of instrument.