The Power Trend Forex strategy is an amazing system that is used to enhance trading results.
It is able to give traders better clues on market directions. Once you get the setup right, profiting from the various forex market cycles becomes an easy task.
The logic behind the signals is pretty simple: whenever price is aligned above or below the directional indicator, a switch in market trend is said to occur.
Let’s put all things into perspective and look at the market from the prism of our strategy.
MetaTrader4 Indicators: bat-atr.ex4 (Inputs Variable Modified; BackPeriod=2000, ATRPeriod=18), curver-arrows.ex4 (Inputs Variable Modified; SSP=20, SkyCh=15)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the blue line of the bat-atr Metatrader 4 Forex indicator gets positioned somewhat below the candlesticks as shown on Fig. 1.0, price is said to be pressured to the upside, therefore a trigger to go long is apt.
- If the blue upward pointing arrow of the curver-arrows indicator pops up fairly below the price bars as shown on Fig. 1.0, bulls are said to be driving price higher, as such a buy alert will suffice.
Stop Loss for Buy Entry: Place stop loss below the blue bat-atr indicator line.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If while a bullish trend is ongoing, the bat-atr custom indicator displays a red line that pops up above the candlesticks (see Fig. 1.0), it is a signal to exit or take profit immediately.
- If a red downward pointing arrow of the curver-arrows indicator stays above the candlesticks during the course of a buy signal, bulls power is said to be weaning, therefore an exit or take profit will suffice.
Sell Entry Rules
Go short if the following setups gets displayed rightly on the activity chart:
- If the red line of the bat-atr Forex indicator gets placed slightly above the candlesticks as seen on Fig. 1.1, price is said to be pushed lower, therefore a trigger to go short is appropriate.
- If the red downward pointing arrow of the curver-arrows indicator pops up marginally above the candles as exemplified on Fig. 1.1, bears are said to be pushing price lower, as such a sell alert will do.
Stop Loss for Sell Entry: Place stop loss above the red bat-atr indicator line.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a bearish trend is running, the bat-atr custom indicator pops up a blue line that’s aligned below the price bars, it is a trigger to exit or take profit straightaway.
- If a blue upward pointing arrow of the curver-arrows indicator stays below the candlesticks during the course of a sell signal, bears power is said to be halting, therefore an exit or take profit will do.
Sell Trade Example
About The Trading Indicators
The bat-atr.ex4 is a volatility technical indicator that measures the strength of price action.
The curver-arrows.ex4 is a custom indicator that displays a band around price, with arrows (blue and red) used in denoting bullish and bearish market trends.