the PotenzaFX Indicators package really rocks. I know I cannot be trusted when I say that because I’m selling it, but it’s the truth 😀
I’m really happy to know that many people using PotenzaFX Powerlines, Correlation and DLS have already paid back their investment a few hours later having installed and used our new indicator package.
As an example, let’s see what happened last Friday, December the 2nd. Being the first Friday of the month, it was of course NFP (Non Farm Payroll) day, when probably the most awaited economic news is released each month. On the left you can see the screenshot of the trade that was signalled by PotenzaFX indicators (you can click on this image for a more detailed view).
I’d like to share my reasoning behind this trade. First of all PotenzaFX Powerlines on the daily EURUSD chart clearly pointed out that EUR had been weaker then USD for the last month. Therefore I felt more inclined to short EURUSD than to go long. On the hourly chart there was a clear double top configuration with the possibility of a false breakout. This was another good reason for trying a short trade. Finally on the five minute chart I had the beautiful cross of Powerlines you can see above. At 8:35 am New York time (5 minutes after NFP was released) – after the spike up – I had a clear short signal from PotenzaFX. The correlation was also negative and this is another indication that EUR and USD strength lines are probably moving in opposite directions. The trade was a successful 118 pips ride 😀
I’d like also to share a powerful reversal technique that I always keep in mind when trading after-news volatility. The idea is to take a contrarian position with respect to the initial spike that follows the news. Then measure the distance from the price 1 second before the news and the highest/lowest price produced by the spike. If price reverses (exactly like happened last Friday) then you go against the spike with 3 distinct take profit levels:
If the first take profit is hit you can put your stop loss at breakeven. If the second TP is hit you can put your stoploss equal to your first TP. I did not trade exactly like this during last Friday since I mostly relied upon PotenzaFX indicators. But knowing this “reversal principle” was a further confirmation that helped me decide to go for a long ride of at least one hundred pips.
I hope this can help your trading 😉 You should really check out the PotenzaFX Indicators package when you have some time. When used correctly it can be a powerful aid to your trading business. And the current price is a real bargain (it will not stay like that forever!).
PS: we have to postpone the release of “basket trading” indicators by one day, to December 9th.