10 August 2016, 11:24
Daniel Stein
21 192

The tools we are talking about are FX TrendFX Power and Lighthouse published by Stein Investments.

If you like to use an automated trade management you can add the Powerplay Trade Manager as well


The three most important analyzes before entering a trade are

1. The trend situation of the underlying symbol -> FX Trend /FX Trend MT5

2.  The individual strength of the involved currencies -> FX Power / FX Power MT5

3. The support and resistance levels of the underlying symbol -> Lighthouse / Lighthouse MT5


Let me explain it with this AUDUSD example chart

1. You'll see that the trends on AUDUSD are in line from M1 - D1 (FX Trend /FX Trend MT5)

2. You'll see that the strength delta between AUD and USD increases (FX Power / FX Power MT5)

3. You'll see that the price struggles at the red resistance level cluster but once it's gone through it's a clear BUY

    (Lighthouse / Lighthouse MT5)



You don't need to wait for any arrows because they are just orientation marks.

It's based on three simple rules

1. If the trends are in line (all trends are BUY or all trends are SELL)

2. the strong momentum is given (the strong currency is > 6.0 and the weak one < 3.0) and

3. there are no support and resistance levels directly in front of your planned trade you can go for it

If you trade cross pairs like GBPAUD you have to check and consider the underlying majors GBPUSD and AUDUSD as well

If the next support and resistance levels are far away you can use them as profit targets.


And that's how it looks after this breakout 


You want to see more trading examples? -> click this link to get dozens of trading charts


1. Trading on small time frames like M15 is suitable for advanced and professional full-time traders.

    I highly recommend all part-time traders to trade on H1 which is much more comfortable to deal with.

   To trade this system on H1 I recommend using FX Power with an analysis period of 1 Day.

2.  Study the Dow Theory of higher highs and lower lows to optimize your timing and increase your profits.

     ->click here to read more about the Dow Theory from the Investopedia University

3. All trend trading systems benefit from volatility caused by a high trading volume.

    The highest trading volume is available during the London and early New York trading session.

    ->click here to get more detailed information about the Forex market hours

   If you are unable to trade the London/New York session I highly recommend trading on H1

4. Especially in the beginning, I recommend staying with the major USD pairs like EURUSD, USDCAD, AUDUSD, etc.

    If you trade cross pairs like GBPAUD you have to check and consider GBPUSD and AUDUSD as well.

5. Check if there are any upcoming high impact news events for your currency pair.

    Common sources are the economic calendars of forexfactory.com and dailyfx.com

6. Discipline and patience is the key to success!

Don't hesitate to contact us if you like to get further assistance.

Best regards 


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