The idea of the Power Index Strategy is to trade the strongest currencies against the weakest currencies.

**To consider a currency to be strong the following conditions must be met:**

- The MACD must be pointing upwards. Which means the fast moving average (blue) of the MACD indicator must be above the slower moving average (orange).
- The EMA must be sloping upwards.
- The daily candle that has just finished must have finished as a green candle.

**To consider a currency to be weak the following conditions must be met:**

- The MACD must be pointing downwards. Which means the fast moving average (blue) of the MACD indicator must be below the slower moving average (orange).
- The EMA must be sloping downwards.
- The daily candle that has just finished must have finished as a red candle.

**Entry – Example of a sell order.**

- Pick up two currencies, one of which must be strong and the other must be weak according to the criteria given above. The trade must be entered between 22 GMT and 00 GMT (3 am to 5 am in Maldives Time).
- Determine the pair and the direction of the trade. Let us assume that the strong currency is USD and the weak currency is NZD. Go to the daily chart of NZDUSD. Since the strength of the USD and the weakness of the NZD will make the NZDUSD to move lower, we will enter a sell position on the pair.
- Determine the lot size. This depends on the risk you are willing to take. I recommend that you risk 5% of your equity per trade. To do that, first you need to determine where the SL (stop loss) needs to be. Go to the daily chart, the SL needs to be placed a few pips above the high point of the last candle (yesterday’s high) since you are selling. Measure how many pips it is from the SL to the level you are entering into the trade. Then calculate the lot size you need to use in-order to risk 5% of your equity. Which means if the SL is hit, your equity will go down by 5%.
- Sell the pair, place the SL a few pips above the last daily high as we have planned, and place the TP (take profit) slightly bigger than the SL.

**Entry – Example of a buy order.**

- Pick up two currencies, one of which must be strong and the other must be weak according to the criteria given above. The trade must be entered between 22 GMT and 00 GMT (3 am to 5 am in Maldives Time).
- Determine the pair and the direction of the trade. Let us assume that the strong currency is Euro and the weak currency is AUD. Go to the daily chart of EURAUD. Since the strength of the Euro and the weakness of the AUD will make the EURAUD to move higher, we will enter a buy position on the pair.
- Determine the lot size. This depends on the risk you are willing to take. I recommend that you risk 5% of your equity per trade. To do that, first you need to determine where the SL (stop loss) needs to be. Go to the daily chart, the SL needs to be placed a few pips below the low point of the last candle (yesterday’s low) since you are buying. Measure how many pips it is from the SL to the level you are entering into the trade. Then calculate the lot size you need to use in-order to risk 5% of your equity. Which means if the SL is hit, your equity will go down by 5%.
- Buy EURAUD, place the SL a few pips below the last daily low as we have planned, and place the TP (take profit) slightly bigger than the SL.