46# Fx-Blood Forex Trading System

Entry Conditions:

• Buy Entry:

  1. Zig Zag Buy Arrow appears at a swing low.

  2. Power Trend Buy Arrow confirms the trend is turning bullish.

  3. FX Blood Filter shows blue bars confirming the uptrend.

  4. The Power Trend Ribbon should appear below the candles, indicating bullish momentum (optional).

• Sell Entry:

  1. Zig Zag Sell Arrow appears at a swing high.

  2. Power Trend Sell Arrow confirms the trend is turning bearish.

  3. FX Blood Filter shows red bars confirming the downtrend.

  4. The Power Trend Ribbon should appear above the candles, indicating bearish momentum (optional).

Exit Strategy:

• Stop Loss:

  • Set the stop loss at the previous swing high for a sell trade or the previous swing low for a buy trade.

• Take Profit (Profit Target):

  • Set the take profit at a risk-reward ratio of 1:1.3 to 1:2. For example, if the risk (distance from entry to stop loss) is 50 pips, the take profit should be between 65 to 100 pips.

Example Trade (Buy Setup):

1. A Zig Zag Buy Arrow appears, indicating a potential reversal at a swing low.

2. The Power Trend Buy Arrow confirms the shift in trend direction, and the ribbon appears below the price candles (optional).

3. The FX Blood Filter turns blue, confirming the uptrend.

4. Place a Buy order with a stop loss at the previous swing low and set the take profit at 1:1.5 of the risk.

Example Trade (Sell Setup):

• 1. A Zig Zag Sell Arrow appears, indicating a reversal at a swing high.

  2. The Power Trend Sell Arrow confirms a downtrend, and the ribbon appears above the price candles (optional).

  3. The FX Blood Filter turns red, confirming the downtrend.

  4. Place a Sell order with a stop loss at the previous swing high and set the take profit at 1:1.3 of the risk.

Notes:

• • Trend Confirmation: Always ensure both the Zig Zag and Power Trend indicators agree on the direction before entering a trade.

  • FX Blood Filter: This acts as a confirmation filter; avoid trades where the filter does not align with the main chart signals.

  • Volatility: Monitor market volatility, as tighter stop losses may be needed during high-volatility sessions.

   

  This strategy combines swing identification with trend following for robust trade setups, reducing the risk of false signals and improving the chances of capturing larger trends.