Power Fuse Trading System For MT4

Table Of Contents:

Power Fuse Trading System For MT4

Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.

Power Fuse Trading System For MT4 is mostly designed to take the trades in M30 and H1 time frames. This system comes with three unique templates named Power fuse with RSX, USDJPY H1, and USDJPY H1 3a.30. The indicators used in the Power fuse with RSX and USDJPY H1 are the same but for the USDJPY H1 3a.30, additional indicators Vq0.5 and XO are used.

Vq0.5 and XO have been used to enhance the functionalities of the Power Fuse trading system. With the help of the USDJPY H1 3a.30 template, you can even trade the M30 time frame. The additional two indicators will act as an advanced filter during the trade execution process.

List of indicators:

3c jrsx h
FibConfluence edu
PowerDynamiteAreas edu
PowerFuse edu
PowerFuseHistogram edu
Vq0.5
XO

Chart setup with Power Fuse Trading System For MT4

After installing the necessary indicators, you might think the trading strategy is a bit complex. Moreover, this system also uses some exotic indicators which are not found in the default MT4 platform. So, it is better to get a brief idea about the functions of these indicators as it will help us to make logical decisions.

Functions of the indicators:

To get comfortable with the Power Fuse Trading System For MT4, we should learn the functions of each indicator. We will also discuss the about important input parameters which help us to change the default settings in an optimized way.

3c jrsx h

The 3C jrsx H indicator is a trend-identifying tool. It creates colored histogram bars that show the direction of the trend. But in the Power Fuse Trading System For MT4, the 3C jrsx indicator has been infused with the RSX indicator. So, colored bars showing in the RSI indicator panel are showing the data from the 3C jrsx indicator.

FibConfluence edu

The FibConflunce edu marks the important retracement level with the continuous and green color dashed lines. Usually, the different Fibonacci retracement levels are shown based on the minor and major swings in the price.

FibConfluence edu indicator parameter

Those who are not familiar with the short retracement extension line may increase the value in the large line extension from the input parameters. You may also use a lower deviation factor during the choppy state of the market. But we recommend trading with the 0.75 deviation factor is suitable for trend trading.

PowerDynamiteAreas edu

The power Dynamite areas edu indicator prints upper and lower extreme zone in your analytical chart. The resistance level is marked with a red bold horizontal line. On the contrary, the support zone is marked with the blue bold line.

PowerFuse edu

Power fuse edu is more like a trend filter tool. It creates a signal by creating a small colored dot. The blue color dot suggests a bullish rally and the red color dot gives us the indication that the price will fall. On the contrary, the yellow color dot suggests indecision between the buyers and sellers.

PowerFuse edu indicator parameter

The default band period in the PowerFuse Edu indicator used in the Power Fuse Trading System For MT4 is set to 20. You may increase its value to 30, during a significant shift in the trend. Higher value usually smoothens the calculation process and helps you to get smooth reading.

PowerFuseHistogram edu

Power Fuse Histogram uses a band period of 8 and analyzes the shift in market momentum. When the bulls are in control of the market, it prints a blue histogram bar above the reference line. On the contrary, red histogram bars are created below the reference line during the bearish trend.

Vq0.5 and XO

The Vq0.5 acts as an active filter with a smoothing factor of 35. The blue bar stands for bullish momentum and the red bar suggests the bears are in control. On the contrary, the XO indicator prints the sky blue bar during the bullish trend and the pink bar when the price is falling.

The long trade setup sequence

To execute the long trade, we will be using the power fuse with the RSX template. In this template, the primary indicators reading are shown in a separate window below the main chart. Those indicator readings will act as the trade filter. Now let’s see the conditions to execute the long trade.

Conditions to execute the long trade

We need to pick an asset that is already in an uptrend. The price should make at least one higher high to consider the existing trend as bullish.
The blue color Fibonacci support line will act as the critical support level. If the price bounces off that level or forms a bullish confirmation signal, we will check the readings from the indicators panel.
At the RSX indicator panel, we should blue histogram bars. If the blue histogram bar is below the zero lines, the color of the Heiken Ashi candle must be white to consider it as a valid long signal.
In the Power Fuse edu indicator, we should spot a minimum of two blue dots. The first blue dot confirms the support level has hold and the second blue dot confirms the bulls are ready to push the price to a new high.
Finally, we need a blue histogram bar in the power fuse histogram edu indicator panel. Once the blue bar is spotted, we may open a long trade using the market order.

Execution of long trade

Stop loss:

While taking the long trade with the help us Power Fuse Trading System For MT4, we can set the stop loss in a very simple way. Since the green Fibonacci retracement level acts as the primary support, we may place out stop below that level.

In case, you use the price action confirmation signals like a bullish pin bar or bullish engulfing pattern, you place the stop below the low of the bullish confirmation candlestick.

Take profit

There are two easy ways by which you can set the take profit while using the first template. Either you can determine the TP level by analyzing the resistance level manually or you can set the TP to the red horizontal bar created by the PowerDynamiteAreas edu indicator.

No matter which method you chose to set the TP, the minimum risk to reward ratio for the trade should be 1:3 or higher.

The short trade setup sequence

Now, we will learn the use of the USDJPY H1 3a.30 template to take the short trade. By default, this template will add the Vq0.5 and XO indicators. But to find the entry point, you need to manually add the FibConfluence edu indicator. Once you have the chart ready, you can look for the prerequisite conditions to take the short trade.

Conditions to execute the short trade

Look for a rejection of the green color Fibonacci retracement level drawn by the FibConfluence edu.
If the downtrend is too strong, you may look for a break of the Fibonacci support level which will act as a strong resistance level.
At the RSX indicator panel, you should see pink histogram bars on the negative side of the reference line.
In the XO indicator, at least two purple bars should be printed on the negative side of the reference line.
The power fuse Edu indicator should print at least 3 red bars showing the dominance of the bears.
The Vq0.5 indicator will start printing red bars right after the bearish breakout of support or at the rejection of a major Fibonacci retracement level.
Finally, we will be checking the value of RSX bars with a period set to 16. If the bar color is pink, you may take the short trade. The purpose of using multiple RSX indicators with different periods is to improve the accuracy of the indicators reading by offsetting the lagging issues.

Execution of short trade

Stop loss

If you take the short trade after the bearish rejection of resistance, you should place the stop loss above the resistance zone. On the contrary, if you take the trade after the break of a major support level, you should place your stop above the consolidation zone.

Note that, usually the price will form a consolidation structure before breaking a major support or resistance level. So, the consolidation zone act as a standard price barrier to set the stop-loss limit.

Take profit

You may ride the bearish trend till the power fuse Edu indicator changes its color to blue. Before it changes its color to blue, the dot will turn yellow. Manually close the trade when you spot the yellow dot.

To use a more easy method, you might assess the support level and place the take profit limit. But in such a case, you should be maintaining a minimum 1:3 risk to reward ratio.

Power Fuse Trading System For MT4 – Useful advice

While using the Power Fuse Trading System For MT4, it is very normal to get confused while analyzing the readings from each indicator sequentially. You might skip few critical conditions and thus lose money due to poor trade execution.

To avoid such a major problem, we recommend using a checklist so that you can be sure that you have checked the necessary conditions while taking the trades. And avoid over-trading or high-risk exposure while using this system.

Power Fuse Trading System For MT4 – Conclusion

The Power Fuse Trading System For MT4 can be used dynamically. For instance, instead of using the RSX (16) in the second template, you may use RSX 10 and switch to a lower time frame. But if you make any change, test the performance of the system in the demo account.

After learning the functions of this system, you might get overconfident by using the organized sequence. But note that, every system has to face some losses. So, be prepared to deal with small losses even after doing the proper analysis.

Download the complete system description and the files here:

Power Fuse Trading System For MT4

List of indicators: