Analysis 19-12-16

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

 

 

Golden Setups which occurred recently

NZDUSD

On NZDUSD (H4) despite the recent break out higher, the bias was bearish with the triangle chart pattern that occured near to resistance level 0.6566

 

In the screenshot on H1 shows the steeper upward move that triggered a short term Golden Sell Setup.

 

 

The bias is still very bearish whilst prices remain below the 0.6680 to 0.6717 resistance area. The last week situation on NZDUSD showed double bearish divergence (H1) and nested divergence (H1/M30) very close resistance area.

A V-Power sell signal within the Golden Sell Setup on NZDUSD would have looked similar to the drawing in the following screenshot (however there was no signal from V-Power)

 

The next chart showed a bearish divergence on the timeframe M30 developed also within bearish divergence on H1. Therefore, both edges (Divergences and Resistance level) occurred at the same time, then the probabilities of both edges added to each other.

 

Then this two divergences and the major resistance which already gave a signal that a reversal to the downside will most probably occur and effectively fell below 0.6548 level. The last Higher High and Higher Low they now be came in Lower High and Lower Low. See chart below.

The following screenshot shows where the Stop Loss and Take Profit were located. The stop loss was placed at the high of the divergence previous. The sell entry on H1 was during red boxes (was at the beginning of a new trend on H1). As we are looking for a sell, then made sure  do so AFTER NZD/USD has closed below the steeper trendline resistance area. The Take Profit was placed to 1R away from the entry point; therefore, the trade was a risk reward ratio of 1 to 1 (around 28 pips).

Conclusion:

Stop Loss @ .6574 (labeled with the red arrow)      

Entry  @ .6548 (labeled with the black arrow)

Take Profit @ 0.6526 (labeled with the green arrow)

 

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

 

Possible Next Golden Setups at the moment

 

CADJPY

In the D1 time frame we can see on CADJPY the Price Action very close to the resistance area labeled with blue color. Price moved up slightly from the Bullish Pin Bar that formed 4 weeks ago at the 81.377 level. A V-Power buy signal within the Bullish Pin Bar triggered upward prices.

The next screenshot on H1 shows the actual situation. The upward move started with a strong/steep initial move on December 12th  and today the resistance area is being tested.

Also we can see on H1 a bearish divergence near to long term resistance level (labeled with a blue line).

 

Along these lines, we have 3 things on CADJPY which maybe produces a Golden Sell Setup:

  1. Matured Upward Trend
  2. A major resistance price level
  3. A regular divergence on H1

 

 

 

 

About Me

I'm Mike Semlitsch the inventor of the PerfectTrendSystem. I'm in the trading business since 2007. Helping other traders to succeed in trading is my passion. The PerfectTrendSystem is the result of more than 30,000 hours of hard work. Connect With Me:  

This FREE Indicator Can Transform
Your Trading!

FREE Indicator + Telegram Group

Request the Ultimate Double Top/Bottom Indicator which is used by 10,000+ traders.