Forex Trend Power Strategy

The forex trend power strategy is deployed by combining the signals it generates with that of the Fisher and the fxtrendpower custom indicator.

The strategy will be used to generate fast intraday signals.

Chart Setup

MetaTrader4 Indicators: Sidus v.2.ex4 , Fisher_m11.ex4 , fxtrendpower.ex4 (all default settings)

Preferred Time Frame(s): 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week

Recommended Trading Sessions: Any

Currency Pairs: Majors (EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, NZD/USD)

Free Download

Download The Forex Trend Power Strategy.

Buy Example (click the image for full size):

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Strategy

Long Entry Rules:

Initiate a buy entry when the following indicator patterns are displayed on the chart above:

  • Enter a buy position(s) when the Sidus v.2 yields a big dark blue arrow below the candle bar. Knowing that the Sidus v.2 deploys two moving averages and a relative strength index in generating signals, traders should also be on the lookout for candlestick formation above the Sidus v.2 a bullish signal i.e. the bullish candle must open and close above Sidus v.2.
  • The Fisher_m11 changes color from red to green. Usually, the green bars of the Fisher_m11 develop above the zero level.
  • The fxtrendpower simply produces a blue horizontal line, signaling a bullish trend.

Stop Loss For Long Entry: 20-70 pips above the open of the entry candle (the stop loss should range with smaller pip for smaller time frame and as the time frame increases, the stop loss should be adjusted higher as well).

Exit Strategy/Take Profit For Long Entry:

Exit your position when the following conditions are observed:

  • If a dark blue arrow pointing downward is formed above the candle bar, this is a strong exit signal.
  • The Fisher_m11 reverts to red color bars formed below the zero level, a shift from its greenish colored bars.
  • The fxtrendpower indicator color changes to a gold horizontal line.

Sell Entry Rules:

Short signals are triggered if the following patterns are seen on the custom indicators:

  • When the Sidus v.2 indicator’s big dark blue arrow forms on top of the candles, pointing downward, then it is a clear indication of a bearish signal.
  • The Fisher_m11 histograms changes color from green to red. A clear signal that we have an eminent sell signal in the market.
  • When the fxtrendpower indicators’ horizontal line turns into gold, then a sell signal is about to start.

Stop Loss For Sell Entry: 20-70 pips above the open of the entry candle.

Exit Strategy/Take Profit For Sell Entry:

Exit your position when the following conditions are observed:

  • If a dark blue arrow pointing upward is formed below the candle bar, this is a strong exit condition.
  • The Fisher_m11 reverts to green color histogram formed above the zero level.
  • The fxtrendpower indicator color changes to a blue horizontal line.

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Fig. 1.1

Free Download

Download The Forex Trend Power Strategy.

About The Trading Indicators

The core of this trading system, which is the Sidus v.2 indicator is one that employs two moving averages and a relative strength index to dish out signals. The combination allows the Relative Strength Index to filter out the signal, while offering better entry levels.

The Fisher_m11 on the other hand is a simple histogram indicator that spots strength and course of the trend and alerts changes in trend. Its code is devoid of any typical MT4/MT5 indicator.

Finally, the fxtrendpower uses horizontal line in gold and blue colors to distinguish between bullish and bearish market signals as shown in the examples above.

The entire strategy is well equipped to deliver the much required intraday profits as such opportunities make way during market sessions.

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