Analysis 20-01-4

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

 

 

Possible Next Golden Setups at the moment

 

XAUUSD

In the D1 time frame we can see on XAUUSD a strong bullish trend 8 days ago. Price broke up strongly the bearish trend on December 23th and keep going up.

The Revelant Key Levels are Resistance at 1557.04 (Purple line) and Support (Medium Spring Green line) at 1445.59.

The major resistance is about to be tested.

 

The next screenshot on H4 shows the actual situation. The upward move (very steep upward move) started with a break out above the bearish trend on December 23th and today the resistance área is about to be tested.

 On H1 time frame, the bullish steeper trend line (dotted green color line and labeled with number 1) formed by a climatic move (Step 1: How to detect the pattern?) is a clear sign that the bullish trend reversal is about ocurr. It can be see a bearish divergence formed (red rectangle) which gave a signal that a reversal to the downside is about to happen.

  

 

It’s important for a clear Golden Sell Setup, look for:

  1. A regular divergence on M30 or H1 and at the same time on the Major Resistance @1557.04 (Purple line)
  2. A major resistance price level. In the chart above on D1/H4 there is a Major resistance which is the August high price at 1557.04 (Purple line)
  3. Matured Upward Trend H1: There is a very steep upward move on H1. It’s necessary that the upward move cut cross the major resistance and then develops a false break out to upside.

 

Golden Setups which occurred recently

USDCHF

The following screenshot shows the D1 Time Frame of USDCHF. The lows from August (5 month lows) are being tested (labeled with red circle).

USDCHF has Relevant Key Levels like Resistance at 1.0026 (Purple line) and Support (Medium Spring Green line) at 0.9659. A bullish Pin Bar forms right around this strong support.

 

The following screenshot shows the H4 time frame. It can be clearly see the long - term support level (Medium Spring Green color line ) which was penetrated (stop hunt below the support) by the price action (labeled with the red circle). The fall below this floor could not send the price lower early yesterday.

The bearish solid line is labeling the initial move. The bearish dotted line is labeling the climatic move  which penetrate the support level on 0.9659. Also it develops a V-Formation labeled with number 1. Price has moved up from this pattern formed above 0.9659 key support recently.

 

 

On H1 time frame below shows a steeper trend line (dotted line) formed by a climatic move (is a sign that the bearish trend reversal will occur)

The key support level was penetrated and an upward reversal (V Formation labeled with blue color) formed a couple days ago. The price moved up from this pattern (V - Formation).

 

The following chart shows the time frame M30. It can be seen a downward climatic move wich had a duration of 3 days (The Smart Money 3 -Days - Cycle). As soon as the sell stop area was reached (where many traders of the herd have placed their protective stops) the smart money heavily buyed into the sell orders (their absorbed the triggered buy stops from the herd). And then they immediately and sharply reversed the price (Bullish V-Formation).

A bullish divergence (green rectangle) drawn with this indicator Divergence Box Indicator show the price strengthen from MACD. The divergence ends and it move above zero level. Then the price break out above the steeper trend line.

The downward climatic move did penetrate the support level at 0.9659 and therefore it did give a valid Golden Setup.

 Along these lines, we had 3 things on USDCHF which produced a Golden Buy Setup:

  1. Matured Downward Trend: H1/M30
  2. A major Support Price Level
  3. A regular divergence on M30

 

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. 

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