Setups - V-Power

In this section you will see real-chart examples of the trading system: V-Power

 

 

Many traders are applying countertrend strategies that seek to take advantage of movements against breakouts, i.e., they try to profit from false breakouts in the market. However, these strategies can also result in significant losses as once the actual breakout occurs(main trend), the movement is generally strong and continues in the original direction.

Due to this, we recommend applying our methodology to detect consolidation and reversal patterns that correspond to market movements that have a greater potential to end up being false breakouts:  V-Power System Explanation + FREE Version

Golden Setup offers a good basis for selecting high probability trades based on false breakouts. It basically uses daily price charts to identify key levels and 1-hour charts to determine opening prices: Golden Setups explained

 

Golden Setups V_Power Results

 

Our friend Jorge Cazal Acosta is a member of the very active V-Power private group, and he have shared with us trading results; all trades with the V-Power System. Several trades were profitable. Every day active traders in the group improve their results consistently.

 

V-Power SELL signal within the Golden Setup on USDCHF occurred recently

The USD is one of the most traded quotes; a few days ago, the USDCHF had generated a bullish signal. Now this time, after a 6-day uptrend, it gave a sell signal in confluence with bearish divergence and a key level that constituted a previous high that had not been tested.

The bearish divergence, as seen in the chart, spanned 3 days showing the weakness of the uptrend.

After the signal, the price made a pullback for two days but did not reach the stop loss. At this point, the bulls were still in control and caused the price to fall to level 3, where a bullish divergence was formed.

When the EA sends the signal, we need to check elements that will help us validate the signal:

  1. Steeper trend line
  2. Support/resistance
  3. Climatic move
  4. Divergence
  5. V-Formation
  6. V-Power EA signal
  7.  Double Top/Bottom

Visual checklist.

  

 

Forecast based on Monthly, Weekly and Daily time frames:

  • Support/Resistance Monthly:

Resistance at 0.9472 (Maroon Line) and Support (Blue line) at 0.8757

  • Support/Resistance Weekly:

Resistance at 0.9241 (Red line) and Support (Green line) at 0.9017

  • Support/Resistance Daily:

Resistance at 0.9199 (Purple line) and Support (Medium Spring Green line) at 0.9100

 The USDCHF encompasses about 4% of the total annual transactions in the stock market, making it the fifth most traded currency pair globally.

Its historical volatility is quite important, with a maximum difference of 130 pips since its first price.

The USDCHF pair is what we call a trending pair, which means that its movements, whether bullish or bearish, are both strong and long. Thus, it is ideal for the swing trading method.

In addition, the Swiss franc is considered a safe haven, which greatly influences the price of this cross in times of recession in financial markets.

Substantial changes were observed at the beginning of April as the USDCHF began to lose steam.

The monthly level of 0.9472 was the ceiling reached for this month and the preamble of 2 months was completely bearish.

The recovery for bullish positions was seen until June, but it was not enough to recover the previously lost ground.

For July, the downward trend resumed, but it was not able to reach the lower levels reached in the month of May.

The climatic movement took place at the beginning of August (Very Steep Upward Move).

Larger charts will always give a better view to identifying mature trends through climatic movements.

 

In the following graph, we can see an almost vertical movement in the second week of August. There is a considerable distance between this trend and the main trend. These market reactions are normal because they seek to fill spaces where there was liquidity before.

It also indicates that the week was very bullish and that the reversal was imminent because it was about resistance levels that had not been tested around 0.9231.

 

 

 Check list:

  1. Trend line on H1 (steeper trend line)
  2. A major resistance/support price level
  3. Matured trend on H1
  4. 3 -Days - Cycle + Climatic moves on H1
  5. A regular divergence on H1/M30 with PTS_MACD_Divergence_Box_Indi indicator
  6. V- Formation on H1

  

 1. Upward trend line on H1

Trends occur in all temporals, as do accumulations and distributions. Once you learn to correctly identify the four price stages, locating directions and taking advantage of them in your trading will be relatively easy. The time frames as explained to spot them it is from daily frames and the most inclined trends from H1 Time Frame.

Trends, whether upward or downward, trends do not have the same slope or inclination in their evolution since this will depend on the market situation, sector, and specific value.

In addition, in general, the further a trend advances over time, in a greater upward or downward cycle, it may happen that the velocity of prices, as a result of speculation, accelerates significantly and new trend lines can be drawn with greater inclination.

👉 Steeper Trend Line Trading With V-Power 👈 - https://www.perfecttrendsystem.com/steeper-trend-line-trading-with-v-power

 

2. A major resistance price level:

You need to review levels from higher time frames to get a better idea of the following levels that can stop the price.

Here are the four most useful advantages to spot the higher levels

  • Acts as a natural news filter
  • Easier to develop a directional bias
  • Provides quality over quantity
  • Reduces trade frequency

The 0.9231 level was a significant area where the price in July had reacted to the downside; therefore, these types of zones cannot be ignored to search for inputs based on V-Power.

👉 The Support Resistance MTF Indicator 👈 - https://www.perfecttrendsystem.com/special-offer#supp-res-mtf-indicator

 

 

3. Matured Upward trend on H1

Markets and securities move by trends, but not all trends are equally important and therefore, not all should be taken into account in the same way when making decisions. Thus, the trends will be all the more significant when one or more of the following circumstances occur:

A trend is stronger or more significant the greater the number of times it has been touched or tested. A bullish or bearish trend line, which has acted as a respective support or resistance line for prices on six occasions, is more significant than a trend line formed with two supports or resistances.

The  trend matured at USDCHF has the following features:

  • Long duration trend (multiple days): The trend had a duration of 6 days
  • Test key levels on W1/D1/H4: If a long-term trend tests key levels, such as weekly or daily, the change will be probable as long as there is an accelerated movement. USDCHF tested the key level on 0.9231
  • Break out and sharply reversal: This feature must depend on the previous two. There was a false break in progress and then the trend change occurred at USDCHF

 

 4. 3-Days  Cycle + Climatic moves on H1

We can see that the market was in an uptrend, creating impulses to make higher highs and higher lows.

On August 11, the market enters the distribution phase when at the same time, it is in a divergence.

The distribution phase is the process by which the strong hands will sell little by little; their assets go to the weak hands until there is no one willing to continue buying and prices fall due to lack of demand.

The price is in range when it is caught between two price ranges. In other words, the price is in a lateral movement. After this, the market temporarily breaks higher and then falls below the accumulation range.

 5. A regular divergence on H1/M30 with PTS_MACD_Divergence_Box_Indi indicator

A sizeable negative divergence formed at the top of the trend as well around the resistance level.

The above creates a more significant confluence of signals.

The uptrend started on August 4; however, during the last three days of the trend, the maximums of the indicator were lower than those previously marked, while the price kept new maximums. This bearish divergence indicates that the price would collapse, as some of its components already do so.

👉  Divergence Box Indicator 👈 - https://www.perfecttrendsystem.com/special-offer#divergence-box-indicator

 

6V- Formation on H1

Long-duration trends work in favor of reversals. In this example, we can see a 6-day uptrend, in addition to the divergence that accompanies the price at the top, where there is a significant level.

 

 TRADE DETAILS

Currency Pair: USDCHF

Buy/Sell:  SELL

Entry Price:  0,9213

Stop Loss:  0,9242

Target Price:  0,9142

Pips+/-:  71

Actual RR:  2,4

Status:  Closed

Strategy:  Golden Setup

Analysis based on steeper trend line and major support/resistance at the moment

The following analysis are based on steeper trend lines, supports/resistances, Divergences M30/H1/H4, D1, Double Top/Double Bottom and V-Power EA signals

For considering, the procedure about steeper trend line: 

  • upward move = Section 1 (>0 degrees and < 30 degrees)
  • steep upward move = Section 1 (>= 30 degrees and <=45 degrees)
  • very steep upward move = Section 2 (>45 degrees to 90 degrees)
  • downward move = Section 3 (>330 degrees and <360 degrees)
  • steep downward move = Section 3 (<= to 330 degrees and >= 315 degrees)
  • very steep downward move = Section 4 (<315 degrees to 270 degrees).

I recommend doing the steps mentioned below either for V_Power or GOLDen Setup

V_Power_Setup

Chek all rules:

Rule #1: Search only for V-Power Setups after a day which closes near the high / low of the day!

Rule #2: A tight range must develop during the Asian session with a duration of 10+ hours!

Rule #3: An additional move out of the tight range in direction of the previous day must develop

Rule #4: Choose only those entry signals which occur at least 20 hours after the tight accumulation range started

Rule #5: Choose only those entry signals which occur at least 5 hours before the trading day ends

Golden Setup

  1. Switch to D1: Check major supports and major resistances with PTS_SuppRes_MTF_Indi indicator
  2. Switch to H4: Check major supports and major resistances with PTS_SuppRes_MTF_Indi indicator
  3. Switch to H1:
    1. Check steep upward / downward trend line on H1
    2. Check matured upward / downward trend on H1
    3. Check 3 -Days - Cycle + Climatic moves on H1
    4. Ckeck regular divergence on H1 with PTS_MACD_Divergence_Box_Indi indicator
    5. Ckeck V- Formation on H1
    6. Check Sharply and Reversal moves on H1 
  1. Switch to M30
    1. Check steep upward / downward trend line on M30
    2. Check matured upward / downward trend on M30
    3. Check 3 -Days - Cycle + Climatic moves on M30
    4. Ckeck regular divergence on M30 with PTS_MACD_Divergence_Box_Indi indicator
    5. Ckeck V- Formation on M30
    6. Check Sharply and Reversal moves on M30

 

Possible LONG on AUDUSD

Check all rules on V_Power and Golden Setup.

 

 

 

Possible LONG on EURUSD

Check all rules on V_Power and Golden Setup.

 

 

 Possible LONG on GBPUSD

Check all rules on V_Power and Golden Setup.

 

 

Possible LONG on CHFJPY

Check all rules on V_Power and Golden Setup.

 

Possible LONG on NZDJPY

Check all rules on V_Power and Golden Setup.

 

 

 

Possible SHORT on EURCHF

Check all rules on V_Power and Golden Setup.

 

 

 

Possible SHORT on GBPCHF

Check all rules on V_Power and Golden Setup.

 

 

 

 Possible SHORT on USDCHF

Check all rules on V_Power and Golden Setup.

 

 

 Possible SHORT on AUDCHF

Check all rules on V_Power and Golden Setup.

 

Possible SHORT on USDJPY

Check all rules on V_Power and Golden Setup.

 

 

 

 

   

RECAP

SIGNALS FROM V_POWER AND POSSIBLE GOLDEN SETUP

 

   
   

 

Here you can read everything about the V-Power system and download a free version: V-Power System Explanation + FREE Version

By joining the V-Power community you will get access to a very active private telegram group with experienced members: Join the V-Power Community

 

 

 

 

 

Price action is a broad term that indicates any movement or lack of movement. It is the product of some technical or fundamental factor, or both, instead of the mere product of chance or noise. The concept of price action is essential to all traders, as they are all constantly trying to identify the factors that drive price movement in the past, present and future. This way, reading the action of an Action is essential to making successful predictions about the course.

 To identify reversals in the market, the price action will determine with high probability if there will be a change in direction based on levels, divergences, price cycle, double top, double bottom, etc. In practice, there are usually several possible explanations for any perceived price action. The important thing is to look for the confluence of the V-power structure with levels and divergences  V-Power System Explanation + FREE Version

 Successful Golden Setup means reading the price confluence on at least one level and using that information to create a moving narrative that provides insights into possible future price changes that can be taken advantage of: Golden Setups explained

 

Golden Setups V_Power Results

 

Our friend Jorge Cazal Acosta is a member of the very active V-Power private group, and he have shared with us trading results; all trades with the V-Power System. Several trades were profitable. Every day active traders in the group improve their results consistently.

 

V-Power BUY signal within the Golden Setup on GBPCAD occurred recently

GBPCAD was under various pressures that weakened it since August 4 and headed towards the 1.7254 support level after eight trading sessions.

Despite the pair's weakness around psychological support levels, the bulls still need more elements to show intentions to change the trend.

A Double Bottom confirmed any bullish speculation creating conditions in the development of the three phases (consolidation - final accumulation - reversal).

Once the signal gets on August 13, we must validate the confluence of the rules for V-Power and Golden Setup.

Remember that the three phases must develop the same day.

 

 

List of factors need to validate when a potential setup is present:

  1. Steeper trend line
  2. Support/resistance
  3. Climatic move
  4. Divergence
  5. V-Formation
  6. V-Power EA signal
  7.  Double Top/Bottom

Visual checklist.

  

 

Macro analysis from support and resistance areas:

  • Support/Resistance Monthly:

Resistance at 1.7880 (Maroon Line) and Support (Blue line) at 1.6764

  • Support/Resistance Weekly:

Resistance at 1.7568 (Red line) and Support (Green line) at 1.7005

  • Support/Resistance Daily:

Resistance at 1.7625 (Purple line) and Support (Medium Spring Green line) at 1.7261

 

The pair is a proxy for whatever dynamics in EUR / USD and GBP / USD considering that the Canadian dollar is closely pegged to the United States. The British pound is the fourth most traded currency on the foreign exchange market and is considered one of the main reserve currencies in the world. The Canadian dollar as a commodity currency is highly dependent on commodities, especially oil, so anytime oil prices go up, the GBP / CAD pair falls as the CAD gains ground. , and when oil gets cheaper, GBP / CAD is trending upward, CAD loses its support.

A huge bearish pin bar formed on July 19 set the new weekly high where the price started to fall.

After two days down, the asset tried to regain ground through an upward correction. In August, this pair pointed to lower levels and a steeper trend line developed in the last two days of the intelligent bearish cycle is observed.

 

When we switch to a lower time frame, such as the H4 time frame, the main trend is not so steep.

This is due to the sharp decline caused by the Bearish Pin bar in the daily time frame. When the main trend is not so steep, it is a potential area to seek targets.

The second trend as seen in the chart is very steep, showing a very bearish week. That was a clue to look for bullish reversal patterns in the following week.

 

 

 Check list:

  1. Trend line on H1 (steeper trend line)
  2. A major resistance/support price level
  3. Matured trend on H1
  4. 3 -Days - Cycle + Climatic moves on H1
  5. A regular divergence on H1/M30 with PTS_MACD_Divergence_Box_Indi indicator
  6. V- Formation on H1

  

 1. Downward trend line on H1

The main idea of the steeper trend line is to look for the one most inclined towards support or resistance levels and when the market has made at least 3 consecutive days in the same direction.

This rule is applied to search for countertrend entries with a high probability for level 1 of the new cycle.

On August 12 and 13, the bearish movement was quite pronounced towards the support level, where a double bottom was also formed.

👉 Steeper Trend Line Trading With V-Power 👈 - https://www.perfecttrendsystem.com/steeper-trend-line-trading-with-v-power

 

2. A major Support price level:

When a  price approaches the key price level; the probability of a dynamic change in the market trajectory increases at the support or resistance levels. The most common response when approaching these levels is the change of trajectory.

We never sell on support or buy on resistance.

In the case of the GBPCAD, the main support was around 1.7275. The three phases are clearly appreciated, in addition to the formation of the double bottom. The same day the price bounced up.

👉 The Support Resistance MTF Indicator 👈 - https://www.perfecttrendsystem.com/special-offer#supp-res-mtf-indicator

 

 

3. Matured Downward trend on H1

Sometimes buyers or sellers are willing to take the market above or below an important level respectively to "see" if there are many traders on the other side and to know how strong they are.

Now, this has two possible outcomes:

  1. If there are many operators and with a lot of strength on the other side, they will make the market go back and break that level again, which would create a false breakout (against trend)
  2. If there are few traders, or they have little strength, then the market will continue to move in the breakout direction, confirming a valid breakout.

A mature trend will have the features of option 1 explained above and it is at this stage, it is necessary to look for inputs.

The GBPCAD, for example, was in a downtrend for more than 7 days, which is a factor in understanding that the trend is running out.

 

 4. 3-Days  Cycle + Climatic moves on H1

In the GBPCAD, a new upward cycle begins when the price closes above the accumulation range and the profit release phase comes into play.

Sometimes a strong conviction and a feeling of greed take over the market in such a way that a bubble can eventually form. In such a scenario, many investors become irrational and lose perspective on real value, leading them to buy assets simply because they believe the market will continue to rise.

They get greedy and get carried away by market momentum, hoping to make a profit. As the price is overloaded on the rise, it ends up creating a local ceiling. In general, this is considered the point of maximum financial risk.

 

5. A regular divergence on H1/M30 with PTS_MACD_Divergence_Box_Indi indicator

The classic price analysis indicates that a trend is valid if the price reaches higher highs than the previous ones (during a rally) or lows lower than the previous ones (during a sell off).

Not all trend waves are the same, and even if the price makes a higher high than the previous ones, it is not necessarily indicated that it is still in a valid uptrend. Many conditions can occur on the market.

Using the PTS Indicator for divergences, we can see in the GBPCAD the clear signal when the market begins to gain momentum, allowing us to anticipate the next exhaustion or change in the trend.

👉  Divergence Box Indicator 👈 - https://www.perfecttrendsystem.com/special-offer#divergence-box-indicator

 

 

6V- Formation on H1

The double bottom formed around the daily level showed the price rejection after a cycle of more than 3 days down.

There were several alternatives to seek profit-taking, the resistance zone was one of them. Also, the main trend was a possible area for taking profit.

 

 

TRADE DETAILS

Currency Pair:  GBPCAD

Buy/Sell:  BUY

Entry Price:  1,7297

Stop Loss:  1,7259

Target Price:  1,7434

Pips+/-:  137

Actual RR:  3,6

Status:  Closed

Strategy:  Golden Setup

Analysis based on steeper trend line and major support/resistance at the moment

The following analysis are based on steeper trend lines, supports/resistances, Divergences M30/H1/H4, D1, Double Top/Double Bottom and V-Power EA signals

For considering, the procedure about steeper trend line: 

  • upward move = Section 1 (>0 degrees and < 30 degrees)
  • steep upward move = Section 1 (>= 30 degrees and <=45 degrees)
  • very steep upward move = Section 2 (>45 degrees to 90 degrees)
  • downward move = Section 3 (>330 degrees and <360 degrees)
  • steep downward move = Section 3 (<= to 330 degrees and >= 315 degrees)
  • very steep downward move = Section 4 (<315 degrees to 270 degrees).

I recommend doing the steps mentioned below either for V_Power or GOLDen Setup

V_Power_Setup

Chek all rules:

Rule #1: Search only for V-Power Setups after a day which closes near the high / low of the day!

Rule #2: A tight range must develop during the Asian session with a duration of 10+ hours!

Rule #3: An additional move out of the tight range in direction of the previous day must develop

Rule #4: Choose only those entry signals which occur at least 20 hours after the tight accumulation range started

Rule #5: Choose only those entry signals which occur at least 5 hours before the trading day ends

Golden Setup

  1. Switch to D1: Check major supports and major resistances with PTS_SuppRes_MTF_Indi indicator
  2. Switch to H4: Check major supports and major resistances with PTS_SuppRes_MTF_Indi indicator
  3. Switch to H1:
    1. Check steep upward / downward trend line on H1
    2. Check matured upward / downward trend on H1
    3. Check 3 -Days - Cycle + Climatic moves on H1
    4. Ckeck regular divergence on H1 with PTS_MACD_Divergence_Box_Indi indicator
    5. Ckeck V- Formation on H1
    6. Check Sharply and Reversal moves on H1 
  1. Switch to M30
    1. Check steep upward / downward trend line on M30
    2. Check matured upward / downward trend on M30
    3. Check 3 -Days - Cycle + Climatic moves on M30
    4. Ckeck regular divergence on M30 with PTS_MACD_Divergence_Box_Indi indicator
    5. Ckeck V- Formation on M30
    6. Check Sharply and Reversal moves on M30

 

Possible SHORT on GBPAUD

Check all rules on V_Power and Golden Setup.

 

 

 

Possible SHORT on GBPCAD

Check all rules on V_Power and Golden Setup.

 

 

 

Possible SHORT on GBPCHF

Check all rules on V_Power and Golden Setup.

 

 

Possible SHORT on NZDCAD

Check all rules on V_Power and Golden Setup.

 

 

Possible SHORT on NZDCHF

Check all rules on V_Power and Golden Setup.

 

 

 

Possible LONG on AUDNZD

Check all rules on V_Power and Golden Setup.

 

 

 

Possible LONG on EURGBP

Check all rules on V_Power and Golden Setup.

 

 

 

Possible LONG on EURNZD

Check all rules on V_Power and Golden Setup.

 

 

 

 

 

   

RECAP

SIGNALS FROM V_POWER AND POSSIBLE GOLDEN SETUP

 

   
   

 

Here you can read everything about the V-Power system and download a free version: V-Power System Explanation + FREE Version

By joining the V-Power community you will get access to a very active private telegram group with experienced members: Join the V-Power Community

 

 

 

 

 

On many occasions, traders will find scenarios where there is a high probability of a breakout in the market, so they will position themselves to take advantage of the movement and they will end up seeing how the operation ends up failing when prices fall shortly after the breakout occurs and they return to the price range. In fact, even if the price manages to cross a significant price level, this is not a guarantee that the movement will continue.

It is for this reason that the V-Power System takes advantage of false breakouts. If this level is of high importance, it is often observed that large market participants such as interbank dealers try to push prices beyond these types of levels momentarily to execute stop orders.

Daily, weekly and monthly levels are generally significant. No absolute rule determines how much force is needed for the price to overcome these levels and establish a sustainable trend: V-Power System Explanation + FREE Version

Trading based on price reversal at key price levels is less risky, as false breakout scenarios occur more frequently than actual breakout scenarios. This is why many traders get caught in these false breakouts and end up losing money. Sometimes the price can test a support or resistance level one, two, three and even more times before the actual breakout: Golden Setups explained

 

Golden Setups V_Power Results

 

Our friend Jorge Cazal Acosta is a member of the very active V-Power private group, and he have shared with us trading results; all trades with the V-Power System. Several trades were profitable. Every day active traders in the group improve their results consistently.

 

V-Power SELL signal within the Golden Setup on USDJPY occurred recently

Buys in the USDJPY rose significantly on August 4 after a double bottom pattern. The volatility helped buyers for more than a week to seek new highs in early August.

The pair traded around 110.78, partially supported by upbeat figures for that week.

On August 4, the acceleration increased for 3 more days to the upside.

After the 3 day cycle, the price returned to the drop giving us a good setup. The sell signal came 8 hours before the end of the trading day and this is already part of one of the rules.

At the top of the steeper trend line an inverted V pushed the price down for 4 days.

Generally, it is recommended to look for the main trends as TP, but when there is no trend then support or resistance zones respectively.

 

 

7 items on the checklist to validate the quality of the sell signal:

  1. Steeper trend line
  2. Support/resistance
  3. Climatic move
  4. Divergence
  5. V-Formation
  6. V-Power EA signal
  7.  Double Top/Bottom

Visual checklist.

  

 

Forecast based on Monthly, Weekly and Daily time frames:

  • Support/Resistance Monthly:

Resistance at 112.20 (Maroon Line) and Support (Blue line) at 102.58

  • Support/Resistance Weekly:

Resistance at 110.79 (Red line) and Support (Green line) at 108.71

  • Support/Resistance Daily:

Resistance at 110.44 (Purple line) and Support (Medium Spring Green line) at 109.10

 

First, it is important to mention that the USDJPY currency pair corresponds to the second most traded Forex pair. Surpassed only by the EURUSD, the dollar-yen is a pair with many variables to consider. Various financial factors and indicators influence both the value of the US dollar and the Japanese yen. The United States is the world's largest economic power if we consider its gross domestic product.

It should be noted that both currencies have shown considerable strength in recent years. Japan is an international benchmark in quality, culture, economic and commercial management, cutting-edge technology and its automotive industry is one of the most respected worldwide.

The graph shows the long-term trend showing that the general trend was upward. Here two things happened:

The first of them is the great fall produced in July due to the downward correction within the upward trend. This downward correction lasted for the next 30 days.

The second thing we see is a strong rise in August (steeper trend line). At the top of this uptrend, our sales entry was formed.

 

 

The 4-hour time frame gives a different and complementary view. The weekly perspective brings us closer to the reality of how the market is working.

Trend number 1 denotes the main trend from higher time frames. That trend can, in fact, already be used to search for Tp. However, we must also be aware that the price takes time and can last several days or even weeks.

Trend number 2 is a very steep move and becomes the benchmark for looking for entries in H1.

 

 

 Check list:

  1. Trend line on H1 (steeper trend line)
  2. A major resistance/support price level
  3. Matured trend on H1
  4. 3 -Days - Cycle + Climatic moves on H1
  5. A regular divergence on H1/M30 with PTS_MACD_Divergence_Box_Indi indicator
  6. V- Formation on H1

  

 1. Upward trend line on H1

Steep trend lines identify when the price is in a climactic move. Usually, these movements are of short duration, hence the advantage when using them in V-Power.

The first step is to locate a strong trend. We then apply a trend line to help us visualize the trend and use it as a barrier to price action. Now we wait for the price action to break down / down through the trend line and initiate a bullish/bearish movement. When this happens, we open a position according to the V-power rules.

👉 Steeper Trend Line Trading With V-Power 👈 - https://www.perfecttrendsystem.com/steeper-trend-line-trading-with-v-power

 

2. A major resistance price level:

Zones from higher time frames will help create strong areas of contention so that the price will be rejected with a high probability.

Support and resistance are important levels that every trader should know about. They help determine potential market reversals. In addition, they show the current picture of the market and can predict the future direction of prices.

The 110.58 level in USDJPY represents a previous level where the price was rejected; therefore, it immediately becomes a zone to monitor and search for entrances.

👉 The Support Resistance MTF Indicator 👈 - https://www.perfecttrendsystem.com/special-offer#supp-res-mtf-indicator

 

 

3. Matured Upward trend on H1

In some cases, trend weakness can be detected in the evolution of a trend before its breakout. In an upward trend (in which successive supports and resistances are increasing), we will detect weakness in its evolution at the moment when the price does not exceed the price level of the previous resistance. The uptrend breakout only happens when prices break the trend line and we can draw a downtrend line.

The breaking of a trend line caused by an intraday movement will not be valid if the closing price remains within the trend. However, it will always be necessary to be aware of the price evolution in the following days.

In USDJPY, prices broke the uptrend and closed clearly below the steepest trend line and resistance level.

 

 

 4. 3-Days  Cycle + Climatic moves on H1

In financial markets, the price moves in the form of cycles. The price does cycle and then begins another cycle.

The price cycle is basically made up of four stages, which are governed by four emotions. Successful trading is knowing where the price is in the cycle and applying the price action strategy.

There are two trends in the price cycle: An uptrend and a bearish one.

While the price is trending, it can also be determined if the price reverses its direction for the number of days in the same direction. Generally, when there is a 3-day cycle, it is highly likely to change course.

The uptrend in the USDJPY lasted 6 days before changing direction.

5. A regular divergence on H1/M30 with PTS_MACD_Divergence_Box_Indi indicator

3 days before EA sent the sell signal on the chart, we saw that the price began to lose momentum. When getting the signal, USDJPY it crossed the zero line downwards.

At the moment that the price is below the zero line according to the histogram, it is below the resistance at 110.58 as well and this adds to the confluence of elements that further validate the entry.

Consequently, the steeper trend line was also broken.

👉  Divergence Box Indicator 👈 - https://www.perfecttrendsystem.com/special-offer#divergence-box-indicator

 

 

6V- Formation on H1

After the bearish reversal at the top of the trend, a signal was sent by the EA validating the short entry. 

There was a large space to find different areas for profit.

 

 TRADE DETAILS

Currency Pair:  USDJPY

Buy/Sell:  SELL

Entry Price:  110,43

Stop Loss:  110,79

Target Price:  110,01

Pips+/-:  42

Actual RR:  1,1

Status:  Closed

Strategy:  Golden Setup

 

Analysis based on steeper trend line and major support/resistance at the moment

The following analysis are based on steeper trend lines, supports/resistances, Divergences M30/H1/H4, D1, Double Top/Double Bottom and V-Power EA signals

For considering, the procedure about steeper trend line: 

  • upward move = Section 1 (>0 degrees and < 30 degrees)
  • steep upward move = Section 1 (>= 30 degrees and <=45 degrees)
  • very steep upward move = Section 2 (>45 degrees to 90 degrees)
  • downward move = Section 3 (>330 degrees and <360 degrees)
  • steep downward move = Section 3 (<= to 330 degrees and >= 315 degrees)
  • very steep downward move = Section 4 (<315 degrees to 270 degrees).

I recommend doing the steps mentioned below either for V_Power or GOLDen Setup

V_Power_Setup

Chek all rules:

Rule #1: Search only for V-Power Setups after a day which closes near the high / low of the day!

Rule #2: A tight range must develop during the Asian session with a duration of 10+ hours!

Rule #3: An additional move out of the tight range in direction of the previous day must develop

Rule #4: Choose only those entry signals which occur at least 20 hours after the tight accumulation range started

Rule #5: Choose only those entry signals which occur at least 5 hours before the trading day ends

Golden Setup

  1. Switch to D1: Check major supports and major resistances with PTS_SuppRes_MTF_Indi indicator
  2. Switch to H4: Check major supports and major resistances with PTS_SuppRes_MTF_Indi indicator
  3. Switch to H1:
    1. Check steep upward / downward trend line on H1
    2. Check matured upward / downward trend on H1
    3. Check 3 -Days - Cycle + Climatic moves on H1
    4. Ckeck regular divergence on H1 with PTS_MACD_Divergence_Box_Indi indicator
    5. Ckeck V- Formation on H1
    6. Check Sharply and Reversal moves on H1 
  1. Switch to M30
    1. Check steep upward / downward trend line on M30
    2. Check matured upward / downward trend on M30
    3. Check 3 -Days - Cycle + Climatic moves on M30
    4. Ckeck regular divergence on M30 with PTS_MACD_Divergence_Box_Indi indicator
    5. Ckeck V- Formation on M30
    6. Check Sharply and Reversal moves on M30

 

Possible LONG on AUDUSD

Check all rules on V_Power and Golden Setup.

 

 

 

Possible LONG on USDJPY

Check all rules on V_Power and Golden Setup.

 

 

 

Possible LONG on EURJPY

Check all rules on V_Power and Golden Setup.

 

 

 

Possible LONG on AUDCAD

Check all rules on V_Power and Golden Setup.

 

 

 

Possible LONG on AUDJPY

Check all rules on V_Power and Golden Setup.

 

 

 

Possible LONG on CHFJPY

Check all rules on V_Power and Golden Setup.

 

 

 

Possible SHORT on GBPAUD

Check all rules on V_Power and Golden Setup.

 

 

 Possible SHORT on WTI

Check all rules on V_Power and Golden Setup.

 

 

 

 

 

   

RECAP

SIGNALS FROM V_POWER AND POSSIBLE GOLDEN SETUP

 

   
   

 

Here you can read everything about the V-Power system and download a free version: V-Power System Explanation + FREE Version

By joining the V-Power community you will get access to a very active private telegram group with experienced members: Join the V-Power Community

 

 

 

 

 

Most traders know how a trend is defined, and they know what requirements a trend demands, so detecting a change will apparently be much easier.

Sometimes it is thought that to detect a change in trend it is only necessary to draw the guideline of the movement and wait for its breakout. But it is proven that the price during an uptrend or downtrend uses different guidelines.

If you want to go more in-depth on this point, do not hesitate to consult V-Power strategy: V-Power System Explanation + FREE Version

V-Power relies on elements such as levels and divergences to find high probability trades:  Golden Setups explained

 

Golden Setups V_Power Results

 

Our friend Jorge Cazal Acosta is a member of the very active V-Power private group, and he have shared with us trading results; all trades with the V-Power System. Several trades were profitable. Every day active traders in the group improve their results consistently.

 

 

V-Power SELL signal within the Golden Setup on GBPNZD occurred recently

On March 29, the EA sent a sell signal on GBPNZD.

Once the signal arrives, the confluence of the different factors is verified to measure the quality of the signal.

Signal quality is good for the following reasons:

Bearish divergence on D1

Resistance Level on W1

Accumulation phase according to the rule

Stop hunt phase according to the rule

Reversal phase according to the rule

3-Days Cycle

The following list validates confluences and quality:

  1. Steeper trend line
  2. Support/resistance
  3. Climatic move
  4. Divergence
  5. V-Formation
  6. V-Power EA signal
  7.  Double Top/Bottom

 

Visualization of the checklist:

  

 

Perspective based on Higher Time Frames: 

  • Support/Resistance Monthly:

Resistance at 2.1752 (Maroon Line) and Support (Blue line) at 1.8998

  • Support/Resistance Weekly:

Resistance at 1.9802 (Red line) and Support (Green line) at 1.8521

  • Support/Resistance Daily:

Resistance at 1.9822 (Purple line) and Support (Medium Spring Green line) at 1.9197

An important aspect when looking at this pair from the daily time frame is the weekly level tested above the resistance level (red line).

Specifically, that level has not been tested since October last year.

Since December, the GBPNZD has been climbing continuously month after month until touching that important resistance area.

We can see three uptrend lines on the chart.  Each of them is steeper than the previous one.

Very bullish weeks on the H4 time frame.

Each week this pair aimed to reach that weekly level validated more than 5 months ago. This led to anticipation of an imminent fall near that area.

A double top was added to the confluence, and likewise, a very pronounced trend line.

All as many confluences help validate a signal.

 

List of the 7 steps for V-power and Golden Setups:

  1. Trend line on H1
  2. A major resistance/support price level
  3. Matured trend on H1
  4. 3 -Days - Cycle + Climatic moves on H1
  5. A regular divergence on H1/M30 with PTS_MACD_Divergence_Box_Indi indicator
  6. V- Formation on H1

  

 1. Upward trend line on H1

     The first trend is not so pronounced; Therefore, it is the main trend and the one that is taken as a reference for taking benefits (see number 1)

     The second trend is very steep and is the one used as convergence to validate the input (see number 2)

     👉 Steeper Trend Line Trading With V-Power 👈 - https://www.perfecttrendsystem.com/steeper-trend-line-trading-with-v-power

 

 2. A major Resistance price level:

     The price reached a weekly resistance level of great importance because that area had been validated more than 5 months ago.

     The resistance level is marked by the indicator for the weekly time frame at 1.9802.

     “The more times the price approaches a resistance or support without breaking it, the stronger that level will be considered. Take this into account when looking            for reversals with V-Power”

     👉 The Support Resistance MTF Indicator 👈 - https://www.perfecttrendsystem.com/special- offer#supp-res-mtf-indicator

      

      

3. Matured Upward trend on H1

    In mature trends, the traders have to do so under the assumption that a trend line will act as a natural barrier against prices. However, when evaluating a breakout, one of the most important factors to consider is the time frame. As a simple rule, a breakout can be validated if the daily closing price confirms it.

  • Long duration trend (multiple days): The upward trend lasted more than 70 days
  • Test key levels on W1/D1/H4: Here the level tested was weekly, therefore it has reliability
  • Break out and sharply reversal:The price tests the resistance zone and falls

 

 4. 3 -Days - Cycle + Climatic moves on H1

    Banks constantly make profits thanks to Forex trading. How do they do it? They have many strategies and algorithms that they depend on to perform their               operations. But, in all these strategies, there is a very common one, which is known as 3-Days-Cycle.

  • Accelerated motion (very steeper trend line): A very steep uptrend formed in the last three days.
  • Intensity toward support/resistance key levels: The resistance tested is weekly in nature.
  • Duration at least 3 days (3 -Days - Cycle): The last cycle lasted 3 days before falling

 

 

  5. A regular divergence on H1/M30 with PTS_MACD_Divergence_Box_Indi indicator

      The divergence box indicator spot regular divergence on H1; hence, it's a matter to validate every potential divergence with the histogram and the other confluence like levels, DTDB, V-shape, and so on

      Divergence Box Indicator - https://www.perfecttrendsystem.com/special-offer#divergence-box-indicator

     

 6V- Formation on H1

     These are the trade details once the position was triggered

     TRADE DETAILS

     Currency Pair:  GBPNZD

     Buy/Sell:  *SELL

     Entry Price:  1,9678

     Stop Loss:  1,9822

     Target Price:  1,9488

     Pips+/-:  189

     Actual RR:  1,3

     Status:  Closed

     Strategy:  V-Power within Golden Setup

 

 

Analysis based on steeper trend line and major support/resistance at the moment

The following analysis are based on steeper trend lines, supports/resistances, Divergences M30/H1/H4, D1, Double Top/Double Bottom and V-Power EA signals

For considering, the procedure about steeper trend line: 

  • upward move = Section 1 (>0 degrees and < 30 degrees)
  • steep upward move = Section 1 (>= 30 degrees and <=45 degrees)
  • very steep upward move = Section 2 (>45 degrees to 90 degrees)
  • downward move = Section 3 (>330 degrees and <360 degrees)
  • steep downward move = Section 3 (<= to 330 degrees and >= 315 degrees)
  • very steep downward move = Section 4 (<315 degrees to 270 degrees).

I recommend doing the steps mentioned below either for V_Power or GOLDen Setup

V_Power_Setup

Chek all rules:

Rule #1: Search only for V-Power Setups after a day which closes near the high / low of the day!

Rule #2: A tight range must develop during the Asian session with a duration of 10+ hours!

Rule #3: An additional move out of the tight range in direction of the previous day must develop

Rule #4: Choose only those entry signals which occur at least 20 hours after the tight accumulation range started

Rule #5: Choose only those entry signals which occur at least 5 hours before the trading day ends

Golden Setup

  1. Switch to D1: Check major supports and major resistances with PTS_SuppRes_MTF_Indi indicator
  2. Switch to H4: Check major supports and major resistances with PTS_SuppRes_MTF_Indi indicator
  3. Switch to H1:
    1. Check steep upward / downward trend line on H1
    2. Check matured upward / downward trend on H1
    3. Check 3 -Days - Cycle + Climatic moves on H1
    4. Ckeck regular divergence on H1 with PTS_MACD_Divergence_Box_Indi indicator
    5. Ckeck V- Formation on H1
    6. Check Sharply and Reversal moves on H1 
  1. Switch to M30
    1. Check steep upward / downward trend line on M30
    2. Check matured upward / downward trend on M30
    3. Check 3 -Days - Cycle + Climatic moves on M30
    4. Ckeck regular divergence on M30 with PTS_MACD_Divergence_Box_Indi indicator
    5. Ckeck V- Formation on M30
    6. Check Sharply and Reversal moves on M30

 

Possible LONG on GBPUSD

Check all rules on V_Power and Golden Setup.

  

 Possible LONG on AUDCAD

Check all rules on V_Power and Golden Setup.

 

 

Possible LONG on AUDCHF

Check all rules on V_Power and Golden Setup.

 

 

 

Possible LONG on CADCHF

Check all rules on V_Power and Golden Setup.

 

 

Possible LONG on GBPCAD

Check all rules on V_Power and Golden Setup.

  

 

 

Possible LONG on GBPNZD

Check all rules on V_Power and Golden Setup.

 

 

Possible LONG on GBPCHF

Check all rules on V_Power and Golden Setup.

 

Possible LONG on USDCHF

Check all rules on V_Power and Golden Setup.

 

 

Possible SHORT on EURUSD

Check all rules on V_Power and Golden Setup.

 

 

Possible SHORT on US100

Check all rules on V_Power and Golden Setup.

  

Possible SHORT on CHFJPY

Check all rules on V_Power and Golden Setup.

 

 

Possible SHORT on EURAUD

Check all rules on V_Power and Golden Setup.

 

Possible SHORT on EURGBP

Check all rules on V_Power and Golden Setup.

 

 

 

Possible SHORT on EURNZD

Check all rules on V_Power and Golden Setup.

 

 

 

 

 

RECAP

SIGNALS FROM V_POWER AND POSSIBLE GOLDEN SETUP

 

   
   

 

Here you can read everything about the V-Power system and download a free version: V-Power System Explanation + FREE Version

By joining the V-Power community you will get access to a very active private telegram group with experienced members: Join the V-Power Community

 

 

 

 

 

About Me

I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

The following performance was achieved by me while trading live in front of hundreds of my clients:

Connect With Me:  

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