Analysis 20-01-12

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

SHORT USDJPY IDEA

The following chart shows the D1 time frame. This pair has been cruising above a giant bullish pin bar for the past couple of days. Today the price stopped to test this resistance area that lines up with the 109.720 price level.

A strong base has formed after prices held firmly at the short - term 107.76 support level where began the bullish Pin Bar and now it becomes strong support level.

Others key levels are Resistance at 109.720 (Purple line) and 109.309(Purple line).  Support (Medium Spring Green line) at 106.474.

The major resistance is being tested.


On H4 below shows the price strengthen from MACD and the indicator draw a bullish divergence. Strong bullish pattern (V-Formation) at previous resistance area was enough for push the price higher. Pattern size around 84 pips and the boost size around 110 pips.

Let's look now to the one-hour time frame chart. We can see clearly the giant bullish V – Formation developed on the short-term support level @ 107.76. A bullish divergence (green rectangle) developed previously in this same time frame which already gave a signal that a reversal to the upside is about occur. In this same time frame you can also see the first green box of a new direction (PTS_V_Power EA).

 

Now let´s look the situation actual in the same time frame (H1) and as its movement was developed.

Now we must plot a trend line. Actually the trend is bullish. So we draw a upward trend line(labeled with solid green line) which is the initial move. We can see that initial move is in the section 2 which it involves a Bullish Trend and more specifically a very steep upward move (>45 degrees to 90 degrees). Trend by angle 70.2 degrees.

 

 

But, how do we know exactly this value (70.2 degrees).

MT4 includes an option that allows you to know the angle of a trend. 

We can go to MT4 and look for the "insert" option. Next "Lines" option and click "Trend By Angle" (labeled with red circle).

 

 

 

Next, just draw a trend line with this option and you will see the angle value (labeled with red circle).

 

The following chart shows the time frame H1. It can be seen a downward climatic move wich had a duration of 3 days (The Smart Money 3 -Days - Cycle). In this time frame we can also see the purple major resistance line @ 109.720 which is being tested. A bearish divergence (red rectangle) developed in this same time frame which already gave a signal that a reversal to the downside will most probably occur.

 

Note: But the downward climatic move did NOT penetrate the support level and therefore it did not give a valid Golden Setup.

Trade ideas: On the one hand, look for a pullback with a clear V- power Setup sell signal on H1/M30 whilst price remains below the 109.72 resistance área. On the other hand, if we eventually break above 109.72 level, the door can re-open to significantly higher prices.

 

Golden Setups which occurred recently

AUDCHF

On Daly time frame the move was enough to hit a long term bearish trend line and it looks like the sentiment has shifted in the bulls favor.

We’re seeing Relevant Key Levels like Resistance at 0.6836 (Purple line) and Support (Medium Spring Green line) at 0.6687

A false breakout formed on upside trend line. The screenshot shows the price action last week labeled with green arrow and the price action at the moment.


 

 

On H4 we can see how the price strongly broke out below the major support @ 0.6687. Were double pinbar candlestick which pushed the price higher. Each "pin bar" is formed by a "V - Power" in lower time frame.

  

In the time frame H1 you can see three trend lines:

  1. The initial move is the first trend line (labeled with solid red line) placed in the section 3 with 351 degrees. Downward move.
  2. The second move is the second trend line (labeled with solid orange line) placed in the section 3 with 330 degrees. Steep downward move.
  3. The third move is the third trend line (labeled with dotted black line) with 315 degrees. Very steep downward move.

A bullish divergence (green rectangle) developed developed very close to the support level which already gave a signal that a reversal to the upside is about occur. You can also see double V-Formation which are pushing the price higher. Upside targets near to initial move (first trend line labeled with solid red line).

 

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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