Momentum Power Strategy has been making massive pips for Brad Dixon for the last three years. Brad took almost three years and countless hours of testing, tweaking and fine tuning to perfect this Momentum Power Strategy. Brad Dixon is a full time trader. The most amazing thing about this Momentum Power Strategy is that it is very simple. It only uses one momentum indicator and is based on trading divergences. Brad is a true divergence trader and he is about to reveal to you in a step by step manner how simple it is to trade with divergences.
Divergences Are Powerful Leading Signals For Trend Reversal
Divergences are considered to be powerful leading signals for trend reversal. There are not many leading indicators. Most of the indicators are lagging. What this means is that you will only know about the price change when it has already happened. Almost all indicators derive their value from the price action. So it is natural that they will lag the price action. As a trader if you can predict with uncanny accuracy that the trend is about to reverse itself, you are on your way to making a fortune with forex.
Talk about Candlestick Patterns. Some consider them to be leading but infact candlestick patterns are also somewhat lagging. Moreover you cannot just rely on these patterns all the time. Sometime they work and sometimes they don’t meaning you cannot make trading decisions based solely on these patterns. You will need to combine them with some indicator.
Here comes the true power of divergences. There are many traders who only trade these patterns. Divergence pattern develops when the price action makes a higher high or a lower low while the oscillator makes a lower high or a higher low. This is called Regular Divergence. Regular Divergence is a very power signal of trend reversal. When the price action makes a higher high and the oscillator like the MACD, Stochastic or RSI makes a lower high, it means the trend is about to reverse and the price will go down.
For example, if you find a bullish divergence pattern on the H4 chart, it can mean 100-200 pips gain in the next 24 hours. On 28th June 2012, a nice bullish divergence pattern developed on EUR/USD H4 chart. After that in the next two days, the price had move up by more than 200 pips. So if you had identified the bullish divergence pattern on the EUR/USD H4 chart, you could have easily made around 180-200 pips in a set and forget manner.
Another good thing about divergence patterns is that if you are trading on the higher timeframes like H4 and the Daily, you have plenty of time to make the trading decisions. There is not need to hurry like that on M5 or M15 timeframe. There are two types of divergence patterns, Regular and the other is the Hidden. Regular Divergence is a trend reversal signal while the Hidden Divergence is a trend continuation signal.
Momentum Power Strategy Uses Only One Momentum Indicator To Trade Divergences
By now you must have realized the importance of trading divergences. If you really want to master how to trade with these patterns, you should take a look at this Momentum Power Strategy developed by Brad Dixon that uses only one momentum indicator. In essence it is a very simple strategy. Brad Dixon has been trading divergences for the last three years as said above with a lot of success.
For example, in the above chart, you can see this strategy gave clear entry and exit decisions to make 319 pips on the EUR/USD Daily Chart. While the Daily Chart example below shows this strategy made 333 pips on AUD/JPY pair.
Once you download the strategy manual, he is going to teach you everything about how to trade these powerful patterns step by step. He is going to show you how to detect the trend reversal and find the best point of entry with the optimal stop loss placement. He is also going to teach you how to take profit which is something very important because if you don’t know how to take profit you will be leaving a lot of pips on the table. He is going to also provide you with his custom template so that your charts are identical to the ones that Brad uses daily to trade every day. You can download the Momentum Power Strategy manual, go through it and then test it on the demo account for the next months RISK FREE. If you don’t find it simple or easy, you can always ask for a refund from Brad within the first two months.