Actually what we call butterfly in this trading system is moving average indicator. Why we cal it butterfly? let's discuss together. This trading system is using 10 simple moving average indicator, 20 exponential moving average indicator and 30 period exponential moving average indicator.
Butterfly trading system
1. Wait 10 simple moving average indicator above 20 exponential moving average indicator and 20 exponential moving average indicator is above 30 exponential moving average, then we can find buy trading position.
2. Wait 10 simple moving average indicator below 20 exponential moving average indicator and 20 exponential moving average is below 30 exponential moving average, then we can find sell trading position.
3. Wait candlestick bar close above the moving average before you open a buy trading position. And wait candlestick bar close below the moving average before you open sell trading position.
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