This tool for technical analysis of the market situation is actually a ready-made trading system. This is due to the fact that his algorithm contains several indicators. After processing their readings, Forex Gump Ultra issues signals to open trading positions. The parameters in the settings of this indicator are selected for the two most popular currency pairs among traders: eurusd and gbpusd. In this regard, they will have to be changed if you want to use the indicator in trading other instruments. By the way, as practice shows, Forex Gump Ultra works well not only in Forex, but also in CFD and binary options trading.
Forex Gump Ultra setup
The window with indicator parameters looks like this:
Fast_average_period and Slow_average_period are periods of fast and slow moving averages that are used in the indicator.
Set the MACD line period using the Signal_line_period parameter.
In order to specify the smoothing period, use the Smoothing_period parameter.
The size of the indicator shift, expressed in the number of candles, is specified using the Shift_of_the_averaging_line parameter.
An index is also built into the algorithm. To indicate its period, use the Index_calculation_period parameter.
To determine the boundaries of the price range, the settings have the Upper_bound and bottom_bound parameters.
Finally, the indicator should indicate how many candles should be used in its calculations – the Bars parameter.
The last few parameters in the settings do not really matter. They relate to the information window, line width and alerts about signals to open trade orders.
Conditions for opening deals
First, let’s see how the Forex Gump Ultra looks on the price chart of a traded currency pair
I think by looking at this screenshot, you have already understood what a signal to open a trade is. But just in case, I’ll write about it.
If the indicator line has changed its color from blue to red, and at the same time a downward arrow also appears in red, you can sell.
If the Forex Gump Ultra line has changed its color from red to blue and at the same time we see a blue arrow pointing upwards, you can buy.
In order to get a full-fledged strategy, you need to define the rules for placing a stop loss, as well as a take profit. To do this, you can use standard methods: local extrema, levels, trailing stop.
If you are interested in this indicator, then download it from the link below and test it in demo trading.