BUFU Trend Following System is a simple trend following strategy that is developed to trade in the foreign exchange market. BUFU trend following system can be used in any time frame to trade any currency pair but it is recommended to trade in the time frames higher than the 30 minutes. Higher the time fames higher the chances of being wrong. Charts can sometime look messy on shorter time frames and even the information on the very short term time frame can be misleading. For example- You might be seeing a very attractive uptrend market on 5 minutes chart but the reality is that might only be the correction of a major down trend. BUFU trend following system is suitable for both amateur and expert traders. Since it is a very simple trading strategy any one with basic knowledge of forex trading and the metatrader platform can understand this system and can trade profitably with the system. The accuracy rate of this system is really high which gives you the opportunity to make money consistently in the foreign exchange market. However, being unable to follow the system rules with complete self discipline would be a big disaster. It is not only the system that determines your success in the market; it depends on how you use it.
Let’s get back to the system. This system consists of only three custom made indicators which will help you to open position in the market. If the BUFU Trend Following System is correctly installed on your trading platform your chart should look like this:
- Trend CCI: Trend CCI is a custom built technical indicator. It is a histogram that moves below and above the zero level. Generally the Trend CCI indicator is above the zero level in the bullish market and vice versa.
- 4 TF HAS BAR: 4 TF HAS BAR is a custom built technical indicator which shows the trend of the market in 4 different time frames; H1, H4, D1 and W1. This indicator saves your time because you don’t have to analyze the each time frame individually.
- BUFU Trend: BUFU trend is a custom build technical indicator which filters the trend. If you are confused about the direction of the trend, you should use this indicator to confirm the direction of the trend.
Although you can trade in any time frame with this strategy hourly time frame is highly recommended. So in the trade execution examples below we will be using an hourly chart with the fixed take profit level of 100 pips. You can change your target levels according to your desire.
Buying Conditions Using BUFU Trend Following Strategy.
- Trend CCI indicator should be in positive territory.
- The hourly signal of 4 TF HAS Bar should show green color.
- The BUFU trend should be green in color.
- Place your target 100 pips above the entry level.
- Place your stop just below the recent swing low.
Selling Conditions Using BUFU Trend Following System.
- Trend CCI indicator should be in negative territory.
- The hourly signal of 4 TF HAS Bar should show red color.
- The BUFU trend should be red in color.
- Place your target 100 pips below the entry level.
- Place your stop just above the recent swing high.
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