Power Fuse Hybrid – the combination of two indicators into one
The Power Fuse Hybrid is a technical indicator whose basics are built on a combination of the extremely successful MACD indicator and Bollinger bands that have been specially transformed into one common window below the main chart.
The Power Fuse Hybrid indicator has been fine-tuned by professional traders so that it can now be used not only across different time frames, but also across markets. Therefore, that is a great example of how combining two great indicators can result in one unique indicator.
- Highly accurate input signal indicator
- User-friendliness: very simple
- Usability: Forex, Stock Indices, Gold, Silver, Oil
- MetaTrader 4 Compatibility
- Free indicator updates
Blue dots - record the upward tendency of the MACD
Red Dots - record the downward tendency of the MACD
Yellow Dots - Located at the zero value of the MACD, which is a kind of divider between the rising and falling trend
Light blue lines - represent Bollinger bands
Red and blue dashed lines - project the current market mood according to the Bollinger bands
Trading with the indicator
When trading with the Power Fuse Hybrid, within the strategy shown on the chart below, it is very important to find out the current market sentiment, for which the MACD indicator has been preferred here. Therefore, if its value is above the zero line (black line), then this is considered as a current uptrend (only purchases are made) and if below, then as a downtrend (only sales are made). Therefore, if an uptrend is established, then one waits for the MACD to cross the lower light blue boundary of the Bollinger band from the bottom up. Conversely, in the case of a downtrend, one needs the MACD to cross the higher light blue boundary of the Bollinger band from the top down (see chart below - green arrows=entry signals, red arrow=sale signals)
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