Buy (Long) Rules

• Identify Oversold Condition: The 1 min Power Mountain must exceed -0.001, indicating a potential U-turn for a long trade.
• Monitor Power Mountain Strength: The next 1 min Power Mountain should be lower than the previous one, showing increasing market strength.
• Confirm Strength: Identify three consecutive Power Mountains where each is lower than the previous, indicating a divergence.
• Look for Divergence: Prices must go lower while the 1 min Power Mountain histograms are higher, indicating a divergence.
• Check Oversold Territory: Ensure the 1 min Power Line (blue line) is below -80, indicating an oversold market.
• Identify Power Bar: The Power Bar is the third divergence mountain where the histogram shows a peak followed by a shorter bar at the close of the price candle.
• Enter Trade:
  • Enter a long trade when the price breaks higher than the identified peak, with an initial risk ratio of 1:1.
  • Use trailing stops for risk ratios of 1:2 or 1:3.
  • Place the stop loss 5 pips below the previous support level.

Sell (Short) Rules

• Identify Overbought Condition: The 1 min Power Mountain must exceed 0.001, indicating a potential U-turn for a short trade.
• Monitor Power Mountain Weakness: The next 1 min Power Mountain should be lower than the previous one, showing increasing market weakness.
• Confirm Weakness: Identify three consecutive Power Mountains where each is lower than the previous, indicating a divergence.
• Look for Divergence: Prices must go higher while the 1 min Power Mountain histograms are lower, indicating a divergence.
• Check Overbought Territory: Ensure the 1 min Power Line (blue line) is above -20, indicating an overbought market.
• Identify Power Bar: The Power Bar is the third divergence mountain where the histogram shows a peak followed by a shorter bar at the close of the price candle.
• Enter Trade:
  • Enter a short trade when the price breaks lower than the identified support, with an initial risk ratio of 1:1.
  • Use trailing stops for risk ratios of 1:2 or 1:3.
  • Place the stop loss 5 pips above the previous resistance level.

Additional Notes

• Profit Targets:
  • First profit target at a 1:1 risk ratio.
  • Second profit target at a 1:2 risk ratio.
  • Option to use trailing stops for further profit targets.
  • Adjust stop loss to breakeven after hitting the first target for added safety.

These rules apply to the FOREX 1 MIN TRADER Trading System, utilizing the 1-minute chart for quick trades in oversold and overbought conditions identified through the 1 min Power Mountain and 1 min Power Line indicators.