Visit the Forex Power Indicator on our Website: Thanks for downloading this strategy!

Thanks for downloading this strategy! The Power strategy is a simple approach to trend trading which pairs currencies together based on their individual strength in order to maximize the opportunity. In short, we always look to pair the weakest currency with the strongest currency so that the probability of continuation is at the highest possible point. To find the strongest and weakest currency trends, we go to the FPI (Forex Power Indicator) and determine which of the majors is the strongest and weakest for a given period of time. For this strategy, we are looking at trends so we will typically focus on Monthly, Weekly and Daily time frames (when looking at the FPI) to determine which pair(s) will provide the best trending opportunities. This strategy is extremely simple and perfect for beginning traders; but since it is also a solid approach to the market, is also a perfect thing to use in your trading plan for traders of all skills and experiences. What we will do in this guide, is walk you through a step by step approach on how to use the Forex Power Indicator to find and set up high probability trades with a ton of profit potential over and over again. If you have any questions about the strategy, our support team will be more than happy to help!

Visit the Forex Power Indicator on our Website:

http://www.winnersedgetrading.com/forex-power-indicator Click on the monthly tab of the Menu to see which currencies are the strongest over the last 30 day period (You could also use the Weekly or Daily charts to look for shorter trends to take advantage of).

On the right side, you will see some suggested pairs based on the individual, comparative strengths of the currencies. We refer to this as the “true strength” of a currency.

These combinations (of strong and weak) will show you which currencies are going as much in the opposite direction as possible from one another and therefore creating the strongest trends. The beauty is that by pairing them together, your odds of getting on the right side of the market are through the roof. To explain why this is the case, let me give you a quick example. If the EUR/USD is going up but it is only because EUR is very strong and the USD is neutral (or even has some strength but not as much as the EUR), buying into the trend can be dangerous because if the EUR loses strength, the pair will fall. However, if EUR/USD is going up because EUR is very strong and USD is very weak, even if the EUR loses strength, the pair can still continue up because the USD is weak. In essence, you are doubling the chances of continuation by making the best pair and not just finding any trend. So now that you know what combinations are best for trending trades...

Open your Trading Platform and Identify those same Pairs in “Price Form” Now, you will be looking at the candles of these pairs which is a bit more messy than the “true strength” bars shown on the FPI. What you will want to do is pull up the pairs on 1 or 2 units of time lower on your price chart than the power indicator. So if you found the matchups on the Monthly chart, you will want to pull up the weekly or daily (or both) price chart. The reason is that the FPI is showing you strength for the last month of time (last 30 days) so, of course, that does not mean that the monthly time frame is in a downtrend. What it likely does mean is that the Weekly is moving down with a lot of momentum and the Daily is most likely in a downward trend (or at the very least a strong reversal if there is a long uptrend prior to recent movement). So in this case, let’s pull up the NZD/USD chart on a Weekly and Daily time frame:

Confirm that the trend is coincides with the FPI matchup and draw any technical levels, trend lines, patterns, etc. that are noticeable on the price action chart. Here, we want to make sure that we really do have a good trend. Sometimes, the FPI shows a great matchup but it still too early in the development and the trend has not begun to move enough in actual price to confirm that the trend is legitimate. We want to make sure that the trend does have follow through on price as well as identify any technical analysis that should be noted for trading such as trend lines. Here’s an example of the NZD/USD Daily chart:

You can see that I have highlighted a steep downward channel on the chart. This is good information for

me to know because the last two days have been bullish (even though over the full month the pair is still VERY bearish) and it could be signaling a break to the upside. So, of course, we would not want to short the market in the direction of the trend if it is breaking out in a bullish way. The channel lets me know that if the current daily candle were to close above the channel, I may want to avoid the trade.

Technical analysis is a small part of this strategy but it is always helpful to analyze as much data as possible, so trend lines, channels, Fibonacci levels, etc. can always be incorporated into this approach although they are not required. So, once we confirm that the trend is legitimate based on price action on the Daily or Weekly time frame, we can…

Drop down to a one hour chart to prepare to make an entry. The first thing we’ll do on the 1 Hour time frame is place the 21 period RSI and Bill Williams fractals on your charts. These are both free, standard indicators on almost all platforms. When you place the two indicators on the chart, it should look like this:

Now, that we are waiting for an entry (always in the direction of the trend) we will want to look for a few things to help us confirm when the time is right to jump on the trend. The first thing you will want to see is the RSI go above 60 during a downtrend to show that we have a significant enough pullback to short the market (we don’t want to short at the bottom).

**(In an uptrend, the RSI would need to go below the 40 point.) If we have a strong downtrend confirmed by the FPI and find a significant enough retracement (demonstrated by the RSI) we know that we are in position to look for an entry.

Wait for Price Action to break the most recent fractal IN THE DIRECTION OF THE TREND. When a fractal is formed on the chart, it shows market structure. We are looking for a confirmation that price is moving back in the direction of our trend (after the RSI retracement). To confirm the continuation pattern, we look for a candle to break through a fractal that represents a low. For bearish continuation we will always be looking for price to break through a fractal on the bottom (below the candle and pointing downward) and for a bullish break the fractal would be above the candle. This simple pattern improves the odds that the market is going to continue in the direction of the dominant trend and we can therefore sell upon the close of the break of the most recent downward fractal.

Using the most recent “high fractal” (or low for a BUY trade) set your stop 5-7 pips above/below the level and set your take profit to 150 pips or to a recent Support or Resistance area that the market is likely to test. Using this strategy, we have found that protecting the stop is very important so we use the highest fractal of the retracement to protect the stop. We typically set the take profit for 150 pips and let the trade go, but sometimes there is a key level close by that can act as a good target area. Either option is fine as long as the Stop is placed at the correct area, Here is an example of how to protect you stop loss:

Thanks for purchasing this guide! It is our goal that the Forex Power Indicator and this strategy will be an essential guide to empower you to trading profits. This strategy is just one of many strategies that we trade here at Winner's Edge Trading. If you would like access to more of our trades sign up our trading room to trade live with us in the markets. As a “Power Strategy” Customer, you get access to a Huge Special Discount (for a limited time)

Click Below to Get the Special:

https://info.winnersedgetrading.com/strike-3-0-39-limited-time If you have any questions or comments about this strategy please contact us at [email protected] If you have found this useful please share your success trading this strategy with us!!

Thanks and Happy Trading, Casey Stubbs Winners Edge Trading