Bear Naked Pattern indicator points to the entry and exit points of the market, this indicator is suitable for those who trade on the principle: “constantly in the market.”
Bear Naked Pattern
On the chart, this indicator looks quite simple, these are just patterns in the form of red and blue arrows indicating the best moment for the trade to the trader, but in order to calculate the data points on the chart, the indicator needs to apply the calculation methods for other indicators. These indicators are included in the standard delivery with any terminal MetaTrader4 and are called: Moving Average , CCI , Bollinger Bands , but for the indicator Bear Naked Pattern operation , the last indicators do not need to be installed.
Bear Naked Pattern
In order for a signal appears on the buy or sell chart, the indicator looks for the intersection points of the Moving Average and CCI indicators , but these intersection points must coincide with the moment when the price intersects with the lowest or the highest of Bollinger bands. When all these conditions coincide, the indicator draws a red or blue arrow above or under the candle (bar), which points to that candle (bar), after closing which, it is worth to open a deal.
Bear Naked Pattern Indicator parameters:
CCI_Periodo is the period of the CCI indicator;
NivelCCI_MIN – lower level CCI;
NivelCCI_MAX – the upper level of the CCI;
MM_Periodo – the period of the indicator Moving Average;
BB_Periodo – the period of the indicator Bollinger Bands;
BB_Desvio – the shift of the indicator Bollinger Bands.
Also in this indicator there is an opportunity to adjust the color of the arrows and their size.
How to use Bear Naked Pattern
This indicator is designed to reduce the readings of several indicators to just one signal and in this case this signal is the arrow on the price chart that indicates the entry point.
One of the principles of trade on this indicator refers to the type of trade called: “always in the market.” This type of trading is characterized by the fact that at any time a trader trading under this scheme always has an open transaction or transactions, and the transaction data is closed when the signal from the indicator comes in the opposite direction, and new transactions are opened in a new direction. In this case, this system will be the simplest, because the indicator does not feed other signals.
In order to make your trading more systematic, you need to add one or more indicators to this indicator in order to have points of the initial stop, trailing stop and adding to the position.