The Powerful Tool Trading strategy

The Powerful Tool trading strategy is a combination of two standard indicators, which are given the task of finding optimal entry and exit points from the market after determining the current trend. In addition to these indicators, the strategy uses the three-candle line technique, that is, a trade is opened on the candle that closes above the last three before the trend reversal. Combining this trading method with effective Elder indicators allows trading with good and stable profits.

This strategy can be used on timeframes from H1 to D1, the strategy is not entirely effective on other timeframes. However, any currency pair can be used.

Strategy indicators

Strategy A Powerful Tool includes two indicators that are similar in principle and scheme of work. Only one of them is responsible for an uptrend, and the second for a downtrend. Thus, a strategy is created that can determine the market mood, and thereby indicate the point to open certain positions.

• Bulls Power - indicator for analyzing the position of an uptrend. Its settings remain unchanged, that is, its period is 13.

• Bears Power - indicator of assessing the position of a downtrend. Its period remains at 13.

Trading with the Powerful Tool strategy

In the Powerful Tool strategy, the Bulls Power and Bears Power indicators are used for their standard purpose. That is, after the histogram of one of the indicators crosses the zero level, a certain deal is opened taking into account the values ​​of each other. However, in addition to the indicator values, the strategy also uses the line three candles. And for effective trading, it is needed not only to correctly identify the value of indicators, but also to choose the right candle.

Conditions for Buy trades:

• The downtrend, which is preparing for a reversal, should be determined in the market.

• Signal candle, after a reversal, should close above the last three candles before the reversal.

• At the same time, at least two columns of the Bulls Power histogram must be above the zero mark.

• And the Bears Power indicator should move from the negative zone to the positive one, that is, above the zero level.

After a candle is selected according to the technique of the line of three candles, on which all the conditions matched, a buy trade can be opened. Stop loss should be set 3-5 pips below the signal candle. The trade should be closed after a new trend reversal is determined. In this case, it should be considered opening new trades.

Conditions for Sell trades:

• The uptrend in the market should be replaced by a downtrend.

• The signal candle must close lower than the last three candles that were on the chart before the trend reversal.

• The Bears Power histogram should drop below zero.

• The Bulls Power indicator should go below zero.

Upon receipt of such conditions on a candle that closed below three, after a reversal, a short position may be opened. A stop loss order is set at a rate of 3-5 points from the candle. The position should be closed if the downtrend in the market is preparing for a reversal.

Conclusion

A Powerful Tool - a very efficient trading algorithm that, thanks to its simple usage pattern, creates simple trading conditions. The strategy brings a good profit, due to its correct use. In addition to taking into account all the calculations of indicators, as well as correct money management, preliminary practice on a demo account is recommended, which will allow studying in detail all the nuances of the strategy.