It is quite easy to perform testing you are interested in since there are many tools intended for that purpose. You can choose one of the automated backtesters,set your indicator and test in on historical data provided by brokers (in most of the cases you will be able to choose it too). To my mind, the most comfortable solution is Forex Tester because it has all main features needed for such testings. It is also quite simlpe to use it due to the interface that looks like MT4. It allows you to set stop los and take profit levels, and also to apply custom settings for your indicators and even use your own indicators in addition to existing ones. By the way, as usual, it offers even wider dataset - you can find historical data for 10 years (for most popular currencies).
At the same time, manual testing could be also useful, especially if you are going to use your strategy manually - to check the impact of psychology. Backtesting gives you the effectiveness of the strategy itself, but sometimes the impact of trader`s psychology could lead to the results other than expected.