The Cycle Kroufur Trading System was developed in the year 2014. It has been in use for some time now and it has proven to be a worthy trading strategy for the Forex traders. It is easy to use provided that you first learn how to use it. It will not take you much time to learn how to use this trading system; just follow this article carefully.
The Cycle Kroufur Trading strategy employs a two main indicators; a cycle indicator with trend lines which help in determining the direction of the price.
This trading system can be used to trade Forex, indices and also commodities. Most of the brokers offer all this at the same time. So, you just have to load the MT4 platform that you are using and open a chart for any of them and then load the template of the trading strategy.
Cycle Kroufur Trading System is designed for use with H1 or H4 time frames. These two time frames will give the best results. However it doesn’t mean that you cannot use the rest of the timeframe; no. you may choose to use them but they will not give very good results since the indicators used in this trading system gives best signals when used on the H1 and H4 time frames.
The Cycle Kroufur Trading System uses a number of metatrader indicators which are all combined in a template. These indicators include the following:
- Fast TMA line.
This is a band indicator and it is set to use a period of 56, ATR multiplier 2.5, ATR period 100 and the show alerts is by default set to true.
- Trendline indicator.
- Heiken Ashi.
- Cycle Kroufur (its setting are 8, 16, 34, true, with smoothed moving average 2 period).
This indicator is displayed on a separate chart below the main trading chart and it generates two lines; a purple line and a red line. These two lines move on a vertical scale of 0 to 100.
The signals given by this indicator is by the crossing of the two lines.
- Bullish & Bearhis indicator (9).
This is also displayed on a separate chart below the main trading chart. It displays vertical bars on the indicator’s chart. The bars are either red or green. The red bars shows a fall in the market prices while the green bars shows a rise in the market prices.
- Deep Bar Indicator.
This is also displayed on a separate chart. It displays vertical bars just like the bullish & bearish indicator (9). The bars are either dark green or red. The dark green bars shows a rise in the market prices while the red bars shows a fall in the market prices.
Fig.1. Cycle Kroufur Trading System.
How to use the Cycle Kroufur Trading System.
The most important thing when using this trading strategy is to always ensure that you are trading in the direction of the trend line.
- Conditions for placing a buy
The trader should wait for the price to touch, move past the lower TMA bands or bounce on the middle band. Then he or she should use the violet colored trend line as the support.
Also the purple line of the Cycle Kroufur indicator should be above the red line.
The Bullish & Bearhis indicator should be displaying at least a green bar;
The Trend Bar Indicator should also display at least a green bar.
- Conditions for placing a Sell
The trader should wait until the price touches or brakes past the upper TMA bands or bounce on the middle band. Then he or she should use the violet trend line as the support.
The red line of the Cycle Kroufur indicator should be above the purple line.
The Bullish & Bearhis and the Trend Bar Indicator indicators should all be displaying red bars.
Fig.2. Placing trades using the Cycle Kroufur Trading System.
The trader can choose to use stop loss and target levels or close the orders once an opposite signal is given.
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