Diamond power Trend is a forex trading strategy. Diamond Power Trend system is a very effective tool for beginners as well as experienced traders to make money in a consistent basis in the foreign exchange market. Diamond Power Trend is a trend following strategy so it is appropriate to use in a trending market only. However it can be used to trade in both directions i.e. up trending and down trending. The time frame can be used according to your requirements or your trading style. Diamond Power Trend can be used to trade effectively in 5 minutes too and the same system also can be used to trade in a daily timeframe. There are various trade filtering and trade confirmation indicators located at the bottom of the chart. Altogether we will use seven indicators in this trading system.
When the Diamond Power Trend is correctly installed on your trading platform your chart should look like this:
Arrows are the main signal generator of this Diamond Power Trend trading system which allows us to enter in to the market and to get out of the market. You would be buying the pair when a green arrow appears and selling when a red arrow appears.
There are two EMAs used in Diamond Power Trend trading system. EMA of period 30 and 9 are used. In both of the EMAs the data is obtained by using the closing price of the candle. Light blue color moving average is EMA 30 which moves slower than the red color EMA 9.
Momentum indicator is a momentum tool which gauzes the strength of the trend. The mid line used in this momentum indicator is 100. When the momentum is above the level of 100 it indicates the bullish pressure in the market and vice versa.
Uptow is a custom made indicator which consists of a blue and red line. The crossovers of these two lines are used to confirm our trade.
Trap is a custom built indicator. It consists of a histogram which consists of green and red bars. Green bars are the signal for buying positions while the red bars are the signal for selling the currency pair.
MACD doesn’t need more explanation since MACD is a popular tool among the traders all over the world.
Buying Conditions Using Diamond Power Trend Trading System.
- A green arrow pointing upward should appear below the candle stick bars.
- Price should be above both EMAs i.e. EMA 30 and EMA 9.
- Momentum indicator should be above the 100 level.
- The green color oscillator should be above the level of 27.
- The TRAP indicator should form green bars and should be trending higher.
- MACD indicator should be in positive territory.
- Place your stop just below the recent swing low.
- Take your profits when the EMA 30 falls to touch the EMA 9.
Selling Conditions Using Diamond Power Trend System.
- A red arrow pointing downward should appear above the candle stick bars.
- Price should be below both EMAs i.e. EMA 30 and EMA 9.
- Momentum indicator should be below the 100 level.
- The red color oscillator should be above the level of 27.
- The TRAP indicator should form red bars and should be trending lower.
- MACD indicator should be in negative territory.
- Place your stop just above the recent swing high.
- Take your profits when the EMA 30 rises to touch the EMA 9.
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