What are Power Levels...

Power Levels are critical areas of Support & Resistance, which price has a high tendency to bounce from with high precision. Following this method of trading will yield a success rate of over 90% by aiming for 15-30 pips per trade and on average 2-5 trade per day.

Chart Configuration...
Main Time Frame: 15M Sub - Time Frame: 5M & 1M for precision entries & exits Indicators & Overlays: None 1. 2. 3. 4. Plot new Power Levels on your chart as they are given out Keep track of how many times each Power Level has been tested After 2 tests remove the Power Level from your chart, or mark them as exhausted At the end of the week, remove all Power Levels which have been tested at least once

How to Trade Power Levels...

Once price reaches a Power Level place a trade in the opposite direction of the price movement. Examples below: Long Trade from a PL Bounce If price is moving down towards a Power Level @ 1.4650, look to go long at the Power Level, and exit for 15-30 pips. In this case entry was exactly at the Power Level, and the trade was closed for profit for +22pips at 1.4677.

Short Trade from a PL Bounce If price is moving up towards a Power Level @ 1.4607, look to go short at the Power Level, and exit for 15-30 pips. In this case entry was exactly at the 1.4607 Power Level, and exited for a profit of +22 pips at 1.4585.

Money Management
How you manage your position sizing is a personal choice to a large extent. However the accuracy of Power Levels allows one to be relatively aggressive in with their Money Management. Through my experience over 148 trades the average drawdown per trade is 9 pips. All below examples are based on a US$10,000 account.

WisdomFX MM Strategy Maximum Risk: The maximum account exposure is 10%. And this is an averaged position. There is only one averaging done per trade and that is 20-25 pips away from the entry. Example on a $10,000 account Equity. Power level is @ 1.4860. Price is moving towards it from above. That means 1.4860 is a Support POWER LEVEL. 1st Entry: BUY 0.5 Lot (50,000), with aim of taking profit at +15-30pips Price then moves against you by 20-25 pips, so you now look to scale in a 2nd position at 1.4835/40 2nd Entry: BUY 0.5 Lot (50,000) at 1.4840 So now you have an averaged 10% long position size (relative to equity) at 1.4850. Take Profit is 15-30 pips from averaged entry (giving a potential $150 - $300 return/trade). Stop Loss is if you ever lose 3-4% of equity ($300-$400 in this example) or 30-40 pips from your averaged entry. In this example you stop loss would be 30-40 pips below your averaged entry at 1.4850 (i.e. 1.4780/90). Therefore your possible gain is 1.5-3% and possible loss is 3-4%, many would ask; why is your risk greater than your potential gain? Simple, because the accuracy of Power Levels is so high, almost 100% win rate in the past 9 months, that this method of money management works well. WisdomFX Many times I dont average and will go in 10% straight at the power level with minimal drawdown, but one has to understand that this means Stop Loss will be much closer to the entry as per the Stop Loss Rule. The decision to go in 10% straight away is a personal one, made after watching price action and the amount of movement price has made before a power level.

So in essence one has 2 options when taking a power level trade: 1) To scale in 2 positions of 5% 20 pips apart or 2) Take one trade straight away at the power level of 10% Which ever option you choose you must be fully aware of the Stop Loss Rule, and perhaps more importantly FOLLOW IT.

Golden Rule: In any event should you ever lose 3- 4% of your equity in a trading day, it is vital that you switch off your trading console and only come back to the screen the next day. Note: at first you may not have the confidence to take such large positions, this is normal. It is recommended that you therefore start with smaller position sizing and slowly build up your comfort level, while at the same time building up your equity. As time progresses you will develop confidence and experience in these levels, and should be able to take larger positions around Power Levels.

Best of Luck, and remember to be patient with your trading and be prepared to wait for power levels to come into play, dont go chasing the market. Have a plan and have a goal, follow your plan to achieve your goal. Danny aka fxdanny4x