Setups - V-Power

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

 

 

This blog post explains V-Power entries within Golden Setups.

V-Power is a trading system with automation possibilities that gives you an edge over the market. To achieve a much higher winning percentage you can combine high probability setups with V-Power e.g. Golden Setups.

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

Here is a detailed explanation how you can get a huge edge over the market by using Golden Setups: Golden Setups explained

 

Mike made ago several weeks a PTS Mini Trading Course with the purpose everyone can take advantage of the "mini teaching".

I want to show you an adaptation that I made using slides.

 

 

 

 

 

Ok, and what is the purpose of the Golden Setups?

The Golden Setups will help you selecting the BEST entry signals at the MOST LOGICAL REVERSAL LEVELS!

Please read further to see actual Golden setups and learn how to detect them yourself :)

 

V-Power sell signal within the Golden sell Setup on EURGBP occurred recently

 

Today I want explain again and recap the 5 rules of V Power Setup

 I share this possible sell signal on EURGBP on June 1th.

 

Here we could see some confluence of a steeper trend line, climactic move, bearish divergence on time frame H1/M30 and V-Formation and V_Power EA

 

 

 

 On H1 time frame on June 1th we did get a sell signal with V_Power (“V_Power_EA Possible SHORT on EURGBP. Check all rules!”) labeled with black arrow.

 This signal is not necessarily AAA+ setups because we don’t see the trend on the timeframe D1, but is very nice signal and possible Golden setup

Please let’s remember:

  • The first upward box is a full bodied green box until a new high is reached. Wait until the first upward box will be drawn. Buy entries on H1 during green boxes.
  • The first downward box is a full bodied red box until a new low is reached. Wait until the first downward box will be drawn. Sell entries on H1 during red boxes.

 

Note: The box colors depend it depends on the color setup in PTS_V_Power_EA

 

 

The second rule applies in our case:

“The first downward box is a full bodied red box until a new low is reached. Wait until the first downward box will be drawn. Sell entries on H1 during red boxes.”.

 

 

Here is the summary of the forex day trading rules for our high probability entries with V-Power: 

 

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

 

Mike says:

“The setups with the highest probability of success and those which produce on average a big subsequent move are the setups which produce the entry signal after 20 or more hours after the tight accumulation range started”

We know that we must not constantly count candles to trade the V-Power system, because the V_Power_EA will do this counting and the analysis for us.

 

RECAP

The EA gave us a signal when the next red box is drawn and the low of the actual day is lower than the lower of the previous day. This is already a partly check of the 5 rules.

The remaining rules need to be checked visually.

 

These red rectangles were drawn because a new low was reached and the previous 20 candles did not cover the same price level. As you can see in the screenshot these 20 candles concept in itself is already a great tool to detect the direction of the trend. The following screenshot shows the first red box and the space 20 + hours at the moment.

 

And these rectangles make it extremely easy to detect the high probability V-Power setups.

As soon as the first rectangle with a new color is drawn then we directly know that the direction of the trend has changed and that enough time (20 hours) has passed. This trend reversal could be a candidate for a high probability V-Power setup. 

All we have to do now on EURGBP is to check if all 5 previously discussed rules apply which define the highest probability V-Power setups.

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

This is the first rule to find our highest probability setups. Here is where the smart money silently prepares the Reversal. The price move during the Asian session should be a relatively tight range.

A tight range is a good sign that the smart money is silently accumulating it's own position.

The process of actively and silently accumulating a big position from the herd takes time. The smart money must carefully absorb the orders of the herd without producing big price swings against the previous direction.

On EURGBP the price high was near to the price close. High (0.89938) - Close (0.89886) around 5 pips i.e it’s too close.

 

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

Because it takes time to accumulate silently we will see a tight range which has a duration of many hours. Good ranges have a duration of 10+ hours.

A free space develops below (when we wait for bearish reversals) and above (when we wait for bullish reversals) the tight range. We will later come back to this free space.

On EURGBP we can see a range with a duration of 10 + hours and also a free space was developed below because we wait for a bearish reversal.

  

 

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

We need a special move after the tight range of the accumulation phase. This move should be into the same direction as the previous day and should be not too big.

This additional move brings the herd into the "euphoria"-state. The positions in direction of the trend are in good profit and live as a trader feels easy on that day.

The following screenshot on EURGBP shows where the herd is in the "bullish euphoria"-state.

 

This additional move (upside move) is the final accumulation trick initiated by the smart money. New traders from the herd are induced with this move and the smart money takes the counterpart of those positions. This additional move also grabs protective stop-loss orders of many traders of the herd who were positioned against the direction of the trend and now get kicked out of their position by a few pips.

 

After the final accumulation move the smart money will use the emotional shift of the herd from extreme thrill/euphoria to anxiety to make money. The position which the smart money has actively accumulated during the tight range and during the final stop hunt move will now be distributed to the herd at a better price with huge profits. A new profit release phase (a new 3-day-cycle) has started.

 

The smart money stops the move by heavily absorbing all incoming orders (buy orders) from the herd. The smart money now no longer wants to keep their actions secret and allows that very clear reversal (bearish reversal) candle stick patterns develop. These patterns can be pin bar with long wicks, spinning tops, doji, long legged doji, hammer, shooting star, inverted hammer, hangin man and so on.

 

As you can see in the red ellipse in the following screenshot double bearish candlestick were develop. That pattern is an early signal that the smart money will now probably reverse the price.

 

 

Average Price:

It’s the average price nearer to the actual price. It’s the average price nearer to the actual price. All the orders are absorbed to the position at best prices i.e the average price of the position of the smart money gets better.

We can draw a horizontal line between range low and the high of the stop-hunt for stimate the average price of the position of the smart money.

On the H1 time frame, we can see that after the price breaking below the horizontal (at the black arrow) the short position of the smart money is already in profit. See the chart below.

Sharp Reversal:

Right now, we must look for a sharp reversal against the previous direction. After stopping the trend of the previous 3-day-cycle (with reversal candle patterns) and further adding to the own position the smart money now produces the first strong and full bodied candle(s) against the direction of the previous day. This action forms a sharp reversal on the price chart with which the smart money induces anxiety into the herd.

“With the sharp reversal against the previous direction, the position of the smart money is already”

The V-Power Entry Signal and momentum for the Level1 of the new 3-day-cycle:

On EURGBP we should enter short trades when the price gets above of the lower boundary of the accumulation range.

“Enter sell trades when the price gets below of the lower boundary of the accumulation range. Enter buy trades when the price moves above the upper boundary of the accumulation range.”

Only after these price levels are reached the inverted Vs (sell trades) and the Vs (buy trades) are completed.

We can see a V Formation (Inverted V)and the price get abovr of the upper boundary. It also starts a new 3-day-cycle. See the chart.

 

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

Mike says: “the setups with the highest probability of success and those which produce on average a big subsequent move are the setups which produce the entry signal after 20 or more hours after the tight accumulation range started”

This means that a big enough subsequent move will occur after our entry to give us a good profit on a regular basis.

On EURGBP after sell signal, the price action dropping around 113 pips.

The following screenshot on H1 Time Frame shows 20 hours after the tight range began:

 

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

The biggest move of the day will nearly always occur between 7 GMT and 20 GMT!

We can expect according to the usual behavior of the market that a further big move after our entry signal occurs.

Therefore, Mike on the website https://www.perfecttrendsystem.com/day-trading-strategy-for-forex-v-power wrote :

“In my opinion an entry at 19 GMT should be the latest possible entry. All entry signal after 20 GMT should be avoided because the odds are against a big further move.”

The following screenshot of the time frame H1 shows that entry on EURGBP was 6 hours before the trading day ends

The vertical dotted lines show the end of the trading day.

 

The trade is triggered when the 5 rules are fulfilled (labeled with a red ellipse) and after break steeper trend line. Entry @ 0.8993 and Stop Loss @ 0.9047

Your first downside profit target is hit at 0.8988 with 1R (52 pips). Your second downside profit target also is hit at 0.8884 (104 pips). The RR was 2R (around 100 pips). See the chart.

 

 

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

The following analysis are based on steeper trend lines and supports/resistances that are being tested or about to be tested.

For considering, the article posted on January 7th 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 do the setups mentioned below:

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 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

 

 V_Power_EA Possible SHORT on AUDUSD

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 GBPUSD

Check all rules on V_Power and Golden Setup

Possible SHORT on NZDUSD

Check all rules on V_Power and Golden Setup.

  

 

 

 Possible SHORT on EURJPY

Check all rules on V_Power and Golden Setup

 

 

 

Possible SHORT on  USDJPY

Check all rules on V_Power and Golden Setup.

   

 

 

Possible SHORT on  AUDCAD

Check all rules on V_Power and Golden Setup.

 

 

  

Possible SHORT on AUDCHF

Check all rules on V_Power and Golden Setup.

   

 

 

V_Power_EA Possible SHORT on AUDJPY

Check all rules on V_Power and Golden Setup.

 

  

 

 V_Power_EA Possible LONG on  CADCHF

Check all rules on V_Power and Golden Setup.

  

 

 

 V_Power_EA Possible LONG on  EURAUD

Check all rules on V_Power and Golden Setup.

 

 

 

Possible SHORT on  EURCHF

Check all rules on V_Power and Golden Setup.

 

 

 

 

 

 V_Power_EA Possible SHORT on  GBPCHF

Check all rules on V_Power and Golden Setup.

 

 

 

Possible SHORT on  NZDCHF

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

 

 

 

 

 

Write comment (0 Comments)

This blog post explains V-Power entries within Golden Setups.

V-Power is a trading system with automation possibilities that gives you an edge over the market. To achieve a much higher winning percentage you can combine high probability setups with V-Power e.g. Golden Setups.

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

Here is a detailed explanation how you can get a huge edge over the market by using Golden Setups: Golden Setups explained

 

Mike made ago several weeks a PTS Mini Trading Course with the purpose everyone can take advantage of the "mini teaching".

I want to show you an adaptation that I made using slides.

 

 

 

 

 

Ok, and what is the purpose of the Golden Setups?

The Golden Setups will help you selecting the BEST entry signals at the MOST LOGICAL REVERSAL LEVELS!

Please read further to see actual Golden setups and learn how to detect them yourself :)

 

V_Power_EA Possible sell signal and DTB within the Golden Sell Setup on NZDUSD

 

This week there are several signs based on V_Power and DTB again.

Today once again I want explain a possible entry base on V_Power and DTB

On H1 time frame on May 29th we did get DOUBLE sell signal with V_Power (“V_Power_EA Possible SHORT on NZDUSD. Check all rules!”) labeled with black arrow, but we also get a sell signal on DTB indicator

 

 

Here we could see some confluences of a steeper trend line, climactic move, bearish divergence on time frame H4, V-Formation V_Power_EA Sell signal and Double Top.

 

 IMPORTANT INFORMATION ABOUT DOBLE TOP/DOUBLE BOTTOM:

Everyone trades ALWAYS only a bigger picture setup (e.g. from H4/D1) combined with a double top/bottom signal from a lower time frames (e.g. M30/H1)! With this approach you will have a higher winning percentage and can get bigger winners on a regular basis.

There are several Strategies that Mike recommend for trading with DoubleTops/DoubleBottom:

  1. Strategy: Trend Continuation Double Tops/Bottoms AT TREND LINES

Double Tops/Bottoms on M5/M15/M30/H1 directly at a trend line which you draw on H4/D1. The Double Tops/Bottoms occur in direction of the trend line.

 

 

 

 

 

  1. Strategy: Trend Continuation Double Tops/Bottoms AFTER BOUNCE FROM TREND LINES

Double Tops/Bottoms on M5/M15/M30/H1 directly after the price bounced away from a trend line which you draw on H4/D1. The Double Tops/Bottoms occur in direction of the trend line AND NEAR THE TREND LINE.

 

  

  

  1. Strategy: Trend Break Double Tops/Bottoms

=====================

Double Tops/Bottoms on M15/M30/H1/H4 after a trend line is broken which you draw on H4/D1. The Double Tops/Bottoms occur DIRECTLY AT THE TREND LINE.

 

 

 

 

  1. Strategy: Double Tops/Bottoms Within Divergence

=====================

Double Tops/Bottoms on M30/H1 within MACD-Divergences on H4. The Double Tops/Bottoms occur in direction of the divergence.

 

 

 

  

Note: The possible entry  on NZDUSD on MAY 29th is with strategy number 4 “Double Tops/Bottoms Within Divergence

 

The following Mike’s sketch shows how Double Tops with fake breakouts look like. The fake breakout is the price move behind the left leg of the Double Top followed by a fast reversal:

 

This setup (double top) are initiated by the smart money when they want to reverse the trend. Smart money develops a final accumulation of the positions called traps.

These trade are profitable because there is a psychology behind the setups Double Top:

Before a double top is created by the smart money the smart money already accumulated a short position during the preceding upward move. The purpose of the fake breakout (2 -> the bull trap) below the left leg (1) is to mislead as much traders as possible into a long position. As soon as the majority of the herd starts buying into the fake breakout, the smart money starts selling heavily and absorbs all long orders of the herd. When this task is completed then the smart money drives the price very fast downwards. Now the double top is drawn on the chart. The trapped long traders are in panic and are selling their position back to get flat or even reverse their position. This shift of psychology in the herd creates these very fast and profitable moves after a double top with fake breakout is created.

Following screenshot shows a double top setup chart example:

 

 

The last week, on W1/D1 we see the market hit your major support level that acted as a “Strong floor”. The Revelant Key Levels were:

 

  • Support/Resistance Monthly:

Resistance at 0.6754 (Maroon line) and Support (Blue line) at 0.6202

  • Support/Resistance Weekly:

Resistance at 0.6155 (Red line) and Support (Green line) at 0.5468

  • Support/Resistance Daily:

Resistance at 0.6155 (Purple line) and Support (Medium Spring Green line) at 0.5920

 

Note: The Resistance level on W1 is equal to the resistance level on D1

The next screenshot on H4 time frame shows the previous situation which can cause the fall, confluence with major resistance, weakening from MACD (H4) on May 28th, and a very steeper trend line. On H4 below shows, the price weakening from MACD and the indicator draw a bearish divergence. Also, we can see a strong bearish pattern (Inverted V-Formation) at the previous resistance area. Pattern size around 72 pips.

In this same time frame, it sees an upward move (very steep upward move).

Above I wrote: The possible entry on NZDUSD on MAY 29th is with strategy number 4 “Double Tops/Bottoms Within Divergence”.

Double Tops/Bottoms on M30/H1 within MACD-Divergences on H4. The Double Tops/Bottoms occur in direction of the divergence.

Notice in the chart below fulfills all four rules for this strategy:

  1. Bearish divergence on H4 (labeled with number 1)
  2. Price makes higher high (labeled with number 2)
  3. MACD indicator makes a lower high (labeled with number 3)
  4. Double top can be in the H1/M30 TF: This rule we’ll see it later on H1

 

On time frame H1 you can see a trend line. This move is the only trend line with 45 degrees. Very Steep upward move.

The fourth rule of strategy number 4 also is fulfilled (Double top can be in the H1 / M30 TF)

Double Top/Bottom Indicator send twice sell signals:

 

First sell signal: Double Top/Bottom Indicator draws the Double top on May 27th .

Second sell signal: The Double Top/Bottom Indicator draws again a Double top on May 28th.

It can occur a rapid price action movement in the opposite direction (upward trend). This price action could release the phase from the market maker.

There are three signals for getting the trade:

  • DTB indicator sent two sell signals (see the chart).
  • V_Power_EA sent another signal on May 29th (labeled with a red ellipse, see the chart).

The neck line shows the possible entry point.

 

 Right now, on H1 we checked the following steps:

  1. Upward trend line on H1
  2. Matured downward trend on H1
  3. 3 -Days - Cycle + Climatic moves on H1
  4. A regular divergence on H1/H4 with PTS_MACD_Divergence_Box_Indi indicator
  5. V- Formation on H1
  6. Sharply and Reversal moves on H1

 

Upward trend line on H1: In the time frame H1, a bullish trend line is seen. Was an upward climatic move with accelerated motion and intensity toward resistance. This upward movement is a very steeper trend line that tested the major key level at 0.6155

 

Matured Upward trend on H1: That very steeper trend line (45 degrees tilt) broken the major resistance at 0.6155. The matured trend is prerequisite number 1 for a Golden Setup.

 

3 -Days - Cycle + Climatic moves on H1: In this same time frame, it can be seen as a upward climatic move that had a duration of 3 days. This move was enough for penétrate the resistance área. As soon as the buy stop area will be reached (where many traders of the herd have placed their protective stops) the smart money heavily will sell into the buy orders (absorbing the triggered sell stops from the herd).

 

A regular divergence on H4 with PTS_MACD_Divergence_Box_Indi indicator:

This chart below shows the price weakening from MACD and the indicator  draw a bearish divergence; it was a signal that a reversal to the downside was going to happen.

V- Formation on H1: You can also see inverted V-Formation (inverted V) which pushed the price lower.

 

 

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

The following analysis are based on steeper trend lines and supports/resistances that are being tested or about to be tested.

For considering, the article posted on January 7th 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 do the setups mentioned below:

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 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 AUDUSD

Check all rules on V_Power and Golden Setup.

 

 

 

Possible SHORT on  EURUSD

Check all rules on V_Power and Golden Setup.

 

 

 

V_Power_EA Possible SHORT on NZDUSD

Check all rules on V_Power and Golden Setup.

 

 

 

 Possible SHORT on EURJPY

Check all rules on V_Power and Golden Setup

 

 

 

Possible SHORT on  CADJPY

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 EURCAD

Check all rules on V_Power and Golden Setup.

   

 

V_Power_EA Possible SHORT on EURCHF

Check all rules on V_Power and Golden Setup.

 

  

 

V_Power_EA Possible SHORT on  EURGBP

Check all rules on V_Power and Golden Setup.

  

 

 

 V_Power_EA Possible LONG on  GBPAUD

Check all rules on V_Power and Golden Setup.

 

 

 

V_Power_EA Possible LONG on  GBPNZD

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

 

 

 

 

 

Write comment (0 Comments)

This blog post explains V-Power entries within Golden Setups.

V-Power is a trading system with automation possibilities that gives you an edge over the market. To achieve a much higher winning percentage you can combine high probability setups with V-Power e.g. Golden Setups.

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

Here is a detailed explanation how you can get a huge edge over the market by using Golden Setups: Golden Setups explained

 

Mike made ago several weeks a PTS Mini Trading Course with the purpose everyone can take advantage of the "mini teaching".

I want to show you an adaptation that I made using slides.

 

 

 

 

 

Ok, and what is the purpose of the Golden Setups?

The Golden Setups will help you selecting the BEST entry signals at the MOST LOGICAL REVERSAL LEVELS!

Please read further to see actual Golden setups and learn how to detect them yourself :)

 

V-Power sell signal within the Golden Sell Setup on CHFJPY occurred recently

 

Today I want explain again and recap the 5 rules of V Power Setup

I share this possible sell signal on CHFJPY on May 21th.

 

Here we could see some confluence of a steeper trend line, climactic move, bearish divergence on time frame H1/M30 and V-Formation.

 

On H1 time frame on May 21th we did get a buy signal with V_Power (“V_Power_EA Possible SHORT on CHFJPY. Check all rules!”) labeled with black arrow.

 

This signal is not necessarily AAA+ setups because we don’t see the trend on the timeframe D1, but is very nice signal and possible Golden setup

Please let’s remember:

  • The first upward box is a full bodied green box until a new high is reached. Wait until the first upward box will be drawn. Buy entries on H1 during green boxes.
  • The first downward box is a full bodied red box until a new low is reached. Wait until the first downward box will be drawn. Sell entries on H1 during red boxes.

 

The second rule applies in our case:

“The first downward box is a full bodied red box until a new low is reached. Wait until the first downward box will be drawn. Sell entries on H1 during red boxes.”.

 

 

Here is the summary of the forex day trading rules for our high probability entries with V-Power: 

 

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

 

Mike says:

“The setups with the highest probability of success and those which produce on average a big subsequent move are the setups which produce the entry signal after 20 or more hours after the tight accumulation range started”

We know that we must not constantly count candles to trade the V-Power system, because the V_Power_EA will do this counting and the analysis for us.

 

RECAP

The EA gave us a signal when the next red box is drawn and the low of the actual day is lower than the lower of the previous day. This is already a partly check of the 5 rules.

The remaining rules need to be checked visually.

 

These red rectangles were drawn because a new low was reached and the previous 20 candles did not cover the same price level. As you can see in the screenshot these 20 candles concept in itself is already a great tool to detect the direction of the trend. The following screenshot shows the first red box and the space 20 + hours at the moment. 

 

 

And these rectangles make it extremely easy to detect the high probability V-Power setups.

As soon as the first rectangle with a new color is drawn then we directly know that the direction of the trend has changed and that enough time (20 hours) has passed. This trend reversal could be a candidate for a high probability V-Power setup. 

All we have to do now on CHFJPY is to check if all 5 previously discussed rules apply which define the highest probability V-Power setups.

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

This is the first rule to find our highest probability setups. Here is where the smart money silently prepares the Reversal. The price move during the Asian session should be a relatively tight range.

A tight range is a good sign that the smart money is silently accumulating it's own position.

The process of actively and silently accumulating a big position from the herd takes time. The smart money must carefully absorb the orders of the herd without producing big price swings against the previous direction.

On CHFJPY the price high was near to the price close. High (11.490) - Close (111.443) around 6 pips i.e it’s too close.

 

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

Because it takes time to accumulate silently we will see a tight range which has a duration of many hours. Good ranges have a duration of 10+ hours.

A free space develops below (when we wait for bearish reversals) and above (when we wait for bullish reversals) the tight range. We will later come back to this free space.

On CHFJPY we can see a range with a duration of more than 10 hours. However, we can also see a slight movement outside the range, but it is due to the strong momentum of the candle from the previous day. This does not invalidate the range. Also a free space was developed below because we wait for a bearish reversal.

 

 

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

We need a special move after the tight range of the accumulation phase. This move should be into the same direction as the previous day and should be not too big.

This additional move brings the herd into the "euphoria"-state. The positions in direction of the trend are in good profit and live as a trader feels easy on that day.

The following screenshot on CHFJPY shows where the herd is in the "bullish euphoria"-state.

This additional move (upside move) is the final accumulation trick initiated by the smart money. New traders from the herd are induced with this move and the smart money takes the counterpart of those positions. This additional move also grabs protective stop-loss orders of many traders of the herd who were positioned against the direction of the trend and now get kicked out of their position by a few pips.

 

After the final accumulation move the smart money will use the emotional shift of the herd from extreme thrill/euphoria to anxiety to make money. The position which the smart money has actively accumulated during the tight range and during the final stop hunt move will now be distributed to the herd at a better price with huge profits. A new profit release phase (a new 3-day-cycle) has started.

 

The smart money stops the move by heavily absorbing all incoming orders (buy orders) from the herd. The smart money now no longer wants to keep their actions secret and allows that very clear reversal (bearish reversal) candle stick patterns develop. These patterns can be pin bar with long wicks, spinning tops, doji, long legged doji, hammer, shooting star, inverted hammer, hangin man and so on.

 

As you can see in the red ellipse in the following screenshot a bearish tailed candlestick was develop. That pattern is an early signal that the smart money will now probably reverse the price.

 

 

 Average Price:

It’s the average price nearer to the actual price. It’s the average price nearer to the actual price. All the orders are absorbed to the position at best prices i.e the average price of the position of the smart money gets better.

We can draw a horizontal line between range low and the high of the stop-hunt for stimate the average price of the position of the smart money.

On the H1 time frame, we can see that after the price breaking below the horizontal (at the black arrow) the short position of the smart money is already in profit. See the chart below.

 

Sharp Reversal:

Right now, we must look for a sharp reversal against the previous direction. After stopping the trend of the previous 3-day-cycle (with reversal candle patterns) and further adding to the own position the smart money now produces the first strong and full bodied candle(s) against the direction of the previous day. This action forms a sharp reversal on the price chart with which the smart money induces anxiety into the herd.

“With the sharp reversal against the previous direction, the position of the smart money is already”

  

 

The V-Power Entry Signal and momentum for the Level1 of the new 3-day-cycle:

On CHFJPY we should enter short trades when the price gets above of the lower boundary of the accumulation range.

“Enter sell trades when the price gets below of the lower boundary of the accumulation range. Enter buy trades when the price moves above the upper boundary of the accumulation range.”

Only after these price levels are reached the inverted Vs (sell trades) and the Vs (buy trades) are completed.

 

We can see a V Formation (Inverted V)and the price get abovr of the upper boundary. It also starts a new 3-day-cycle. See the chart.

 

 

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

Mike says: “the setups with the highest probability of success and those which produce on average a big subsequent move are the setups which produce the entry signal after 20 or more hours after the tight accumulation range started”

This means that a big enough subsequent move will occur after our entry to give us a good profit on a regular basis.

On CHFJPY after sell signal, the price action dropping around 75 pips.

The following screenshot on H1 Time Frame shows 20 hours after the tight range began:

 

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

The biggest move of the day will nearly always occur between 7 GMT and 20 GMT!

We can expect according to the usual behavior of the market that a further big move after our entry signal occurs.

Therefore, Mike on the website https://www.perfecttrendsystem.com/day-trading-strategy-for-forex-v-power wrote :

“In my opinion an entry at 19 GMT should be the latest possible entry. All entry signal after 20 GMT should be avoided because the odds are against a big further move.”

The following screenshot of the time frame H1 shows that entry on CHFJPY was 7 hours before the trading day ends

The vertical dotted lines show the end of the trading day.

 

 

The trade is triggered when the 5 rules are fulfilled (labeled with a red ellipse) and after break steeper trend line. Entry @ 111.219 and Stop Loss @ 111.640

Your first downside profit target is hit at 110.79 with 1R (41 pips). Your second downside profit target also is hit at 110.36 (82 pips). The RR was 2R (around 80 pips). See the chart.

 

 

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

The following analysis are based on steeper trend lines and supports/resistances that are being tested or about to be tested.

For considering, the article posted on January 7th 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 do the setups mentioned below:

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 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 EURUSD

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V_Power_EA Possible SHORT on  NZDUSD

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Possible SHORT on EURJPY

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 Possible SHORT on CADCHF

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Possible SHORT on  CADJPY

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V_Power_EA Possible LONG on EURNZD

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V_Power_EA Possible LONG on GBPAUD

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Possible LONG on  GBPNZD

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V_Power_EA Possible SHORT on  NZDCHF

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V_Power_EA Possible SHORT on  NZDJPY

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

 

 

 

 

 

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This blog post explains V-Power entries within Golden Setups.

V-Power is a trading system with automation possibilities that gives you an edge over the market. To achieve a much higher winning percentage you can combine high probability setups with V-Power e.g. Golden Setups.

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

Here is a detailed explanation how you can get a huge edge over the market by using Golden Setups: Golden Setups explained

 

Mike made ago several weeks a PTS Mini Trading Course with the purpose everyone can take advantage of the "mini teaching".

I want to show you an adaptation that I made using slides.

 

 

 

 

 

Ok, and what is the purpose of the Golden Setups?

The Golden Setups will help you selecting the BEST entry signals at the MOST LOGICAL REVERSAL LEVELS!

Please read further to see actual Golden setups and learn how to detect them yourself :)

 

Golden Setups occurred recently

SHORT NZDJPY

 

I shared with private group members the short entry at resistance área 65.79 on May 21th.

This was the possible sell signal on NZDJPY the last week.

 

Here we could see some confluence of a steeper trend line, climactic move and bearish divergence on time frame H1 and time frame M30.

 

Let’s go making the analysis from W1 for having a better vision of the major supports/resistances in the different time frames.

 

On NZDJPY had Relevant Key Levels like:

 

  • Support/Resistance Monthly:

Resistance at 73.51 (Maroon line) and Support (Blue line) at 66.29.

  • Support/Resistance Weekly:

Resistance at 66.14 (Red line) and Support (Green line) at 59.44

  • Support/Resistance Daily:

Resistance at 66.09 and 65.78 (Purple line) and Support (Medium Spring Green line) at 63.72 and 63.42

 

 

 

The following screenshot on the H4 timeframe shows the area where the price action bounced the previous resistance área (labeled with a red rectangle).

In this time frame, we can have a better perspective of the closest supports and resistances as well as the momentum and possible rebound áreas.

In addition, a upward movements is seen (one pronounced upward movement). That movement is a very steeper bullish trend.

On Wedenesday (May 20th) the price stopped to test the resistance area that lines up with the 66.09 and 65.78 (Purple line) price level.

 

 

We can see multiples small bearish pin bar and a bearish tailed bar struggling at the resistance área. The tails on bars are important, because they can show rejection, reversal, exhaustion or indecision. We can learn a lot about what a market is doing and what it might do next, by interpreting the tails on the bars. Specifically, daily/4 hour chart bars are important, because we are mainly concerned with the daily chart tren, 4 hour chart trend and daily chart key levels.

Even if we don’t have an obvious pin bar or fakey signal, the tails on bars can help us develop a bias on a market and clue us in to what it’s likely to do next.

 

 

Take a look at the intraday charts about the moves near to the resistance área.

Here’s the 4-hour time frame:

For that, we have to turn to the price action since May 19th.

In this time frame, the movement between the 19th and 21th looked like weakening still more.

On May 19th the price tested resistance level @ 65.78. Here you can also see that there was a preceding steep upward move which consisted of an accelerated motion toward its resistance (labeled with number 1)

On May 21th, the price broke out below the steeper trend line (labeled with number 2).

 

 

In the time frame H1 we drew two bullish trend lines:

  1. The initial move was the first trend line (labeled with a solid green line) with 47 degrees. Very steep upward move.
  2. The second line (green dotted line) was also a very steep upward climatic move with accelerated motion and intensity toward resistance. This upward movement is a steeper trend line that tested and broken out above the previous major key level at 65.78 (purple line).

Note: The matured trend is prerequisite number 1 for a Golden Setup.

The climatic move began on May 18th and three days later tested the resistance área. The next chart showed a bearish divergence on the timeframe M30 developed also within bearish divergence on H1. Therefore, both edges (Divergences and Resistence level) occured at the same time, then the probabilities of both edges added to each other.

A bearish divergence (red rectangle) drawn with this indicator "Divergence Box Indicator" show the price weakening from MACD.The price action moved below resistance area and a downward reversal (V Formation labeled with black color line) it developed at that moment.

 

 

But, there is other buy signal on this pair: Double Tops/Bottoms TF 60

There are several Strategies that Mike recommend for trading with DoubleTops/DoubleBottom:

  1. Strategy: Trend Continuation Double Tops/Bottoms AT TREND LINES

Double Tops/Bottoms on M5/M15/M30/H1 directly at a trend line which you draw on H4/D1. The Double Tops/Bottoms occur in direction of the trend line.

  1. Strategy: Trend Continuation Double Tops/Bottoms AFTER BOUNCE FROM TREND LINES

Double Tops/Bottoms on M5/M15/M30/H1 directly after the price bounced away from a trend line which you draw on H4/D1. The Double Tops/Bottoms occur in direction of the trend line AND NEAR THE TREND LINE.

  1. Strategy: Trend Break Double Tops/Bottoms

=====================

Double Tops/Bottoms on M15/M30/H1/H4 after a trend line is broken which you draw on H4/D1. The Double Tops/Bottoms occur DIRECTLY AT THE TREND LINE.

 

  1. Strategy: Double Tops/Bottoms Within Divergence

=====================

Double Tops/Bottoms on M30/H1 within MACD-Divergences on H4. The Double Tops/Bottoms occur in direction of the divergence.

 

Note: All before strategies should be used only a bigger picture setup (e.g. from H4/D1)

The entry occurred on NZDJPY on May 21th with strategy number 3 “Trend Break Double Tops/Bottoms”

 

 

 

Notice in the chart below fulfills all four rules for this strategy

  1. Trend Line is drawn on H4 and D1

Above we could see the trend on H4 and D1

 

  1. Double Top (DT) ocurrs after the break

 

  1. Double Top (DT) is in resistance zone of the trend line

Here the DT breaks down the trend line and as well is testing the resistance area

       4. DT can be in the H4/H1/M30/M15 TF maybe M5

The DT developed in H1

 

Right now, on H1 we checked the following step:

  1. Upward trend line on H1
  2. Matured downward trend on H1
  3. 3 -Days - Cycle + Climatic moves on H1
  4. A regular divergence on H1 with PTS_MACD_Divergence_Box_Indi indicator
  5. V- Formation on H1
  6. Sharply and Reversal moves on H1

 

Upward trend line on H1: In the time frame H1 two bullish trend lines are seen. The second line (green dotted line) was also a very steep upward climatic move with accelerated motion and intensity toward resistance.

Matured Upward trend on H1: That steeper trend line (61 degrees tilt) tested the major resistance área at 66.09 and 65.78 (Purple line) price level.

The matured trend is prerequisite number 1 for a Golden Setup.

3 -Days - Cycle + Climatic moves on H1: In this same time frame, it can be seen as a upward climatic move that had a duration of 3 days. This move was enough for penétrate the resistance área. As soon as the buy stop area will be reached (where many traders of the herd have placed their protective stops) the smart money heavily will sell into the buy orders (absorbing the triggered sell stops from the herd).

 

A regular divergence on H1 with PTS_MACD_Divergence_Box_Indi indicator:

A bearish divergence (red rectangle) drawn with this indicator "Divergence Box Indicator" show the price weakening from MACD.The price action moved below resistance area and a downward reversal (V Formation labeled with black color line) it developed at that moment.

 

V- Formation on H1: You can also see inverted V-Formation which pushed the price lower.

 

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

The following analysis are based on steeper trend lines and supports/resistances that are being tested or about to be tested.

For considering, the article posted on January 7th 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 do the setups mentioned below:

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 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

 

V_Power_EA Possible SHORT on EURGBP

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Possible LONG on EURNZD

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Possible LONG on GBPAUD

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 Possible LONG on GBPCAD

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V_Power_EA Possible SHORT on  NZDCAD

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V_Power_EA Possible SHORT on EURCAD

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

 

 

 

 

 

Write comment (0 Comments)

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:

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