THE STRATEGY BEHIND THE POWER62 TRADE Okay, we've seen for the most part, that the EMA 62 represents the turn over between Buyers and Sellers in the market. Thus, the key to this strategy is when price moves past the 62 EMA But, I am a conservative trader, and I don't like "typically", so we are going to use some "filters" to help eliminate what I call "head fakes" with the price.

If a filter does not do one of these two things, then why use it. I think you get the point. Put the 13 EMA on your chart with the rest of your indicators.

When everything is at the same price [62 EMA, current market price, 13 EMA] sit up and take notice. When the market breaks away from the EMA 62, there is a very high probability of a strong market move coming.

Well, go back on your favorite currency pair and check it out. This filter is so profitable, you increase the size of our trading position when we see it develop and then happen.

When you go back and check it out, you will notice many times how it just misses a move by a few hours. It is an extremely profitable filter.

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Let's take a look at two examples If we had entered the trade with the Blue Candle closing past the 62 EMA, it would have resulted in a loss. This is a price head fake! But, let's say we used the 13 EMA as a filter.

In other words, we'd only enter the trade if a candle close brought the 13 EMA through the 62 EMA. In this same example, the 13 EMA as a filter would have kept us out of this trade. In summary, we can use the 13 EMA as a filter to determine true sustained market momentum. Now, let's look at an example of using the 13 EMA to actually enter a trade.

By waiting for the 13 EMA to cross the 62 EMA, we eliminate potential price head fakes and their resultant losses. In this case, a candle close at This trade continues up to But sometimes, the price will reverse shortly after the 13 crosses the 62, so how do we profit?

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Can We Avoid the Opportunity Cost of Playing It Safe? The problem with waiting for the 13 EMA to cross the 62 EMA on a candle close is when these trades go, we give up "opportunity profit" that point where the 13 EMA actually crosses the 62 EMA. And, even more importantly, we give up our ability to have almost ZERO RISK going into the trade.

We can see that by waiting for the candle close to bring the 13 EMA across the 62 EMA and entering the trade at Again, filters are designed to keep us out of bad trades, but we don't want to lose profits when using one to enter a trade. So, the way we will capture back the safety net we have in place by using the 13 EMA as a filter, is to actually stack another, smaller term trade in front of the cross.

And, that's going to be the cross, but only the cross that opens into the cross the "last" cross before price moves across the 62EMA. Let's see how that cross will help us maximize our profits. We see that if we take the cross that opens into the cross, we can capture additional pips in this trade.

With the Blue Candle close at Note this is 30 pips EARLIER than if we waited for the Blue Candle close at Next, we'll learn how to use some simple criteria to zero-in with laser-like precision on precisely which 's to take, and how we can trade this model consistently with NEAR ZERO LOSSES.

IMPORTANT NOTE about the POWER62 Enhanced Trading model: We are NOT chasing trades with this model attempting to take a trade at every cross.

Our experience says that will only cause you tremendous heartache, stress, frustration, and mediocre results when all is said and done. I will point out in Rob Booker's original system, he does state you can trade 's. This ENHANCED model is not designed for that. We will only consider one particular , and that's the one opening into the cross. If you want to trade 's as a day trading strategy, please do not include those results with the results you achieve trading this ENHANCED model.

They really are two different strategies. Our criteria for taking the appropriate trade is not going to work for day trading on every trade. Lastly, our model is about getting us off the charts, and trading every trade would only put us back on them. The pip opportunity in this ENHANCED model is more than sufficient to not encourage anyone to be motivated to be chasing pips on every trade that takes place.