So we had a closer look, and saw that there is some serious potential to trade with a remarkable risk reward ratio.
The tool you need for this trading strategy is IX Power MT4 or IX Power MT5
Here's what we found:
1 – That's the long-term trend based on our 1-week analysis
2 – Here's the pullback of the short-term 4 hours instance. It needs to hit the opposite extreme point to the long-term 1W trend.
3 – Then we wait until the dotted 4 hours instance crossed the neutral zero level and enter a trade in the direction of the long-term 1W trend.
And here's another example that's even more impressive
1 – The long-term trend is BUY
2 – The pullback reaches the extreme opposite area
3 – The BUY trend continues with the cross of the zero level
And one more example, this time for Bitcoin or BTCUSD
As you can see, there is a lot of potential because you can start your trade with a tight initial stop at the last M5 candle or the last M5 high/low.
Attention: This approach works best if the underlying exchange of this index is open. (Frankfurt for DAX, New York for the US indices, etc.)
I hope this helps to make the most out of your IX Power usage, and I'm looking forward to your feedback on this approach.
All the best, and happy trading
Daniel
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