Blue Devil Trading System is a mechanical trading system that gives buy and sell signals without any ambiguity or any subjective elements. The primary aim of any trading system is to manage risk and to increase profitability in any market environment.
Blue Trading System does it all with the help of a combination of indicators. This trading system is based on MACD, Golden Tendency String & Golden Variety Indicator. Let’s try to understand the working of this blue Devil trading system.
Blue Devil Trading System Overview
Golden Tendency String is based on the moving average of price. A moving average is commonly used with time-series data to smooth out short-term fluctuations and highlight longer-term trends of the market.
When the price move above the Golden Tendency String and the color of the indicator are blue then the trend is up. When the price moves down from the Golden Tendency String and the color of the indicator is red then the trend is down.
Also, MACD is used in this trading system which is nothing but the difference between a long period and short period moving average. 5 ema is used as short period moving average, and 35 EMA is used as long period moving average.
Crossover of a short period and a long period moving average is an indication of the change in trend. Traders should look for the crossover in favor of the trend.
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Blue Devil Trading System Explanation
Golden Variety Indicator is combination of many momentum and trend based indicator which includes Moving Average, MACD RSI, Momentum, ADX & Force index.
This is a filter that tells us if a currency pair is currently in a trend as per a combination of indicators or not. If all indicators are in favor then this indicator shows a red or blue signal depending on the trend of the market.
Blue Devil: Buy conditions
- Price is moving above of Golden Tendency String.
- Color of Golden Tendency String is blue.
- Blue line in MACD is above the Red line.
- Bull signal by Golden Variety Indicator.
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Blue Devil: Sell conditions
- Price is moving below Golden Tendency String.
- Color of Golden Tendency String is blue.
- Blue line in MACD is above the Red line.
- Bull signal by Golden Variety Indicator.
