A very popular approach in our trading community is to combine different FX power analyses.
This allows you to determine the trends of individual currencies and when to enter them best.
For this strategy, we use our next-generation FX Power NG, which is available for
MT4 👉 FX Power MT4 NG and MT5 👉 FX Power MT5 NG
The goal of our setup looks like this, and it contains a long-term analysis of 1 Week seen as a thick line,
a medium-term analysis of 1 Day as a thin line, and a short-term analysis of 4 hours as a dotted line.
There is a playlist on our YouTube channel that explains how to configure this chart setup with 3 instances of FX Power NG.
The breakout trading strategy
With the breakout strategy, we look for these situations where all 6 strength lines separate from each other. All 3 lines of one currency have to be either above or below all 3 lines of the other currency.
In this example all 3 USD lines are above the GBP lines, which means the USD is significantly stronger than the GBP, and so we short GBPUSD.
The white rectangle marks our entry, the moment where the breakout begins.
And that’s how it looks in relation to the GBPUSD chart.
There are many more examples like that
Do you want to trade like this? Then have a look at our Breakout Tutorial Video
The video is in German, but YouTube provides excellent automatically translated subtitles for almost every language.
English tutorial videos will follow soon.
All the best
Daniel
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