Analysis 20-01-9

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

Trend Bearish, Strongly Bearish, Trend Bullish, Strongly Bullish and how to detect steeper trend line

Mike says:

 

=> 0 degrees to 45 degrees, it is a bullish position.

=> 50 degrees to 90 degrees, it is a strong bullish position.

=> 315 degrees to 360 degrees (0 degrees), it is a bearish position.

=> 270 degrees to 310 degrees, is a strongly bearish position.

 

In the sketch below and for purpose of visualisation i've drawn a circle divide into smaller portions (45 degree angles).


Now, we can placed theses trends into four ranges/sections:

Section 1: Bullish Trend (0 degrees to 45 degrees)

Setion 2: Strong Bullish Trend (>45 degrees to 90 degrees)

Section 3: Bearish Trend (315 degrees to 360 degrees)

Section 4: Strong Bearish Trend 270 degrees to <315 degrees

The image below shows the four sections:

 

A steeper trend line is a form of a climactic move. This concept it´s important because is also a sign that a trend reversal will occur. Therefore, a steep upward move we must place it in Section 1 (greater than or equal to 30 degrees to 45 degrees), a very steep upward move we must place it in Section 2 (>45 degrees to 90 degrees), a steep downward move we must place it in Section 3 (greater than or equal to 330 degrees and less to 360 degrees) and a very steep downward move we must place it in Section 4. See image below

 

To summarize,

  • 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 will use the next example on AUDCHF to explain how to detect steeper trend line and and thus be able to validate if it is a climatic movement with highly profitable potential.

This week, on W1/D1 we’re seeing the market is going to hit your major support level that could act as a “Strong Floor”. The Revelant Key Levels are Resistance at 0.6890 and 0.6822 (short term), Support at 0.6686 and 0.6500. Since December 30th the trend has been too bearish. The major support @ 0.6686 has been boken.

 

 

The next screenshot on H4 shows the actual situation. We can see how the price strongly break out below the major support @ 0.6686. The bearish solid line is labeling the initial move.

A break out and close below .06686 confirms the underlying moving bearish trend in this time (labeled with red arrow).

 

The starting point in the chart setup is to look to the one-hour time frame chart. The next step is to plot a trend line. In this time the trend is bearish. Therefore, we will draw a downtrend line(labeled with solid red line) which is the initial move. We can see that initial move is in the section 3 which it involves a Bearish Trend (315 degrees to 360 degrees). This trend line is our first point of reference. See chart.

 

Now in the same time frame H1, as price progresses, we will need to draw a second, smaller trend line. This second trend line (labeled with solid orange line) is steeper compared to the first. It is also the smaller of the two. By the time we spot the second trend line, we will notice that price has deviated away from the main trend line very sharply. We can see this second move is in the section 3 which it involves a Bearish Trend (315 degrees to 360 degrees) around 330 degrees. This trend line is our second point of reference and first steeper Trend Line. See chart.

 

But la trend contines down, again we will need to draw a third, smaller trend line. This third trend line (labeled with dotted black line) is very steeper compared to the first and second. It is also the smaller of the three. By the time we spot the third trend line, we will notice that price has deviated away from the main trend line very sharply. We can see this third move is in 315 degrees . This trend line is very steeper. See chart.

 

It can be see a bullish divergence formed (green rectangle) but no is near to the major support

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

  1. A regular divergence on M30 or H1 and at the same time on the Major Support @0.6686
  2. A major Support price level. In the chart above on D1/H4 there is a Major support which is the November low price at 0.6686
  3. Matured Downward Trend H1: There is a very steep downward move on H1 wich cut cross the major support.

 

Golden Setups which occurred recently

GBPNZD

The following screenshot shows the D1 Time Frame of GBPNZD. The lows from October (3 month lows) was tested (labeled with red circle).

GBPNZD has Relevant Key Levels like Resistance at 2.0022 (Purple line) and 2.0558 (Purple line) and Support (Medium Spring Green line) at 1.9311. Also a short -term support at 1.9420.

 

The following screenshot on H4 timeframe shows the area where the price action bounced the previous resistance área (labeled with green rectangle). The bearish solid line is labeling the initial move. A bullish divergence (green rectangle) developed in this same time frame which already gave a signal that a reversal to the upside is about occur.

 

The starting point in the chart setup is to look to the one-hour time frame chart. The next step is to plot a trend line. In that time the trend was bearish. Therefore, I drawn a downtrend line (labeled with solid red line) which is the initial move. We can see that initial move was in the section 3 which it involves a Bearish Trend (315 degrees to 360 degrees) around 340 degrees (downward move). This trend line is our first point of reference.

As price did progresses, I needed to draw a second, smaller trend line. This second trend line (labeled with solid orange line) is steeper compared to the first. It is also the smaller of the two. By the time i spot the second trend line, we will notice that price has deviated away from the main trend line very sharply. We can see this second move is in the section 3 which it involves a Bearish Trend (315 degrees to 360 degrees) around 330 degrees (steep downward move). This trend line is our second point of reference and first steeper Trend Line. See chart.

A bullish divergence (green rectangle) developed in this same time frame which already gave a signal that a reversal to the upside is about occur.

An upward reversal (V Formation labeled with blue color) formed a couple days ago. The price moved up from this pattern (V - Formation).

 

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 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:  

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