What is the “Berma Plan” for Entering a Trade?

The “Berma Plan” is a trend following system.

Where we use all the tools mentioned before to search for currency pairs that are moving in a clear direction, with a strong momentum, whether up or down. To do this, we will follow the next steps.

First, Buying in an Uptrend

Look for a “Bullish Berma Pattern”. Whether the bullish pattern is linear or zigzag. The important thing is that it occurs from the beginning of the chart toward its end.

The movement of the price line on the chart should be almost straight, so that the price line on the chart starts from the bottom left and heads to the top right.

The candle movement must be higher than the “Upper Berma Band”.

It is not important that the indicator lines are far apart from each other in the form of a “Berma Cloud” or stick together in a linear form. But the most important thing is that the candles are higher than the “Upper Berma Band”. The greater the difference between them, the better. Because this indicates strong price volatility.

All the “Berma Rate of Change Panel” dots should be bullish, indicating a strong upward momentum.

The slope of the “Berma Grid” should be trending upwards. This is an indication that the main trend is up, even if it is interrupted by short corrections.

When all the above factors come together, I make a buy decision. Because the price candles simply prove to me that there is a clear trend with strong momentum and high volatility.

Second, Selling in a Downtrend

Look for a “Bearish Berma Pattern”. Whether the bearish pattern is linear or zigzag. The important thing is that it occurs from the beginning of the chart toward its end.

The movement of the price line on the chart should be almost straight, so that the price line on the chart starts from the top left and heads to the bottom right.

The candle movement must be lower than the “Lower Berma Band”.

It is not important that the indicator lines are far apart from each other in the form of a “Berma Cloud” or stick together in a linear form. But the most important thing is that the candles are lower than the “Lower Berma Band”. The greater the difference between them, the better. Because this indicates strong price volatility.

All the “Berma Rate of Change Panel” dots should be bearish, indicating a strong downward momentum.

The slope of the “Berma Grid” should be trending downwards. This is an indication that the main trend is down, even if it is interrupted by short rallies.

When all the above factors come together, I make a sell decision. Because the price candles simply prove to me that there is a clear trend with strong momentum and high volatility.

At the End

We have learned the basic setups to enter a trade using Berma Tools. Now let us move to the next topic.