With the application of the right strategy, trading can be both energetic and rewarding, especially when the investor is well acquainted with the right indicator and uses it at the right time. The BarUpDn Strategy Indicator is quite helpful, considering its simplicity and application. The BarUpDn strategy uses the principle of continuously checking any quick price change and using the changes to trade. ( Click this link to access an economic calendar for your trading strategies )
Features of the BarUpDn Strategy
● The strategy is based on the changes in the price.
● Jumps to either a downtrend or an uptrend based on the price change
● Uses color bars as the basis of decision making
How BarUpDn Strategy Works
The strategy enters into a long position when the current bar is green, i.e., when the close is larger than the open, and opens above the previous bar’s close. Whenever the current bar indicates red and the open is below the close of the preceding bar, it enters short. In addition, if the percentage loss surpasses the specified in the indicator settings on any day, it means that all the positions will have to be closed.
BarUpDn Strategy Indicator | Indicator Series Click To TweetIndication of How BarUpDn Strategy
● If close > open and open > close, it means “BarUp,” and the strategy is long
● If close < open and open < close, it means “BarDn,” and the strategy is short.
Application of the BarUpDn Strategy
Using the green and the red bars, a trader can get an alert on an uptrend or a downtrend based on the price changes. With the BarUpDn strategy, traders can know when the market will enter short or long based on the variations of the close and open of the price. Also, based on the trader setting on the indicator, it is easy to know when all positions will be closed based on the loss per day.
The Bottom Line
The BarUpDn strategy applies to whether a specific bar is green and compares it to the previous bar while looking for quick price changes. Any active trader can use the BarUpDn strategy. However, before deciding on engaging in these strategies, the risks and costs associated with each should be considered.
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