Analysis 20-01-16

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

 

 

Possible Next Golden Setups at the moment

SHORT AUDJPY IDEA

 

AUDJPY on D1 has Relevant Key Levels like Resistance at 75.65 (purple line) and 76.32 (dotted black color line). Support at 73.82 (dotted black color line) and 73.34 (Medium Spring Green line).

Giant weekly Pin Bar from last week has triggered a substantial move higher last week.

As I mentioned in a previous post:“Each Pin Par" is formed by a V - Power in lower time frame. If there is a Pin Bar on D1, then there area  V power on H4/H1.

A strong base has formed after prices held firmly at the short - term 73.82 support level where began the bullish Pin Bar and now it becomes strong support level.

The major resistance area is being tested.

 

 

 In this lesson let’s a learning how to detected V – Formations(H4/H1) from Pin Bar on D1

How to detect a V-Power from a Pin Bar pattern

PART 1:

  1. Reject higher/lower prices. The pin bar on D1 is a pattern which has rejected higher or lower prices. In this case, we can see that AUDJPY has rejected lower prices at 73.82.

          Price open and move in one direction (bearish) and then “reverse” during the session to close at or past the open (the price open @ 74.46  and close @                 74.87.

  

 

 

 

At the same time on H4 the price action formed a V pattern (V-Power). Rejected lower prices at 73.82, Price moved in one direction (bearish) and then “reverse” to close past the open (the price open @ 74.46 and close @ 74.87).

 

 

Now switching to H1. In this time frame the formation (V-Power) it look better. The image show lower prices at the support around 73.82 and close at 74.87. Were 73 pips bearish direction and 111 pips reversal

 

 

    2. Deep tail, deep wick or deep shadow. A pin bar is a candlestick with tail much larger that its body. Generally, in a pin bar pattern (with V- Power) the             market closes past the open, or at the open. In the screenshot on D1 you can see the open was at 74.46 and the close at 74.87. The tail implies a reject and         a V-Formation on lower time frames (H4/H1/M30). The longer the tail better. Then a Pin Bar on D1 is formed by nested V-Power patterns. In a nutshell,           inside "V-formations".

 

 

The 4 Hour chart shows the V-Formation.

 

 

At the same time on H1 the price action formed a V pattern (V-Power).

 

At the same time on M30 the price action formed a V pattern (V-Power).

 

   3. Reversal signal near a support or resistance área. A pin bar with V-Power needs to occur near a major support or major resistance área. Some major             support/resistance acts as pivot/swing levels.

       Mike says: Support/resistance levels reverse the trend 60% percent of the time

 

     On AUDJPY was a reject at 73.82 to 73.34 support area labeled with red rectangle.

 

 

 

"In summary, a Pin Bar = Nested V-Power patterns (H4/H1/M30)"

 

This lesson to be continued…

 

Now let´s look the situation actual on AUDJPY.

Actually the trend is bullish. In the time frame H1 we draw a upward trend line(labeled with solid green line) which is the initial move. This initial move is the first trend line placed in the section 1 with 44.2 degrees. Upward move.

It can be see a bearish divergence formed (red rectangle) which gave a signal that a reversal to the downside is about to happen.

 

 

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 76.32 resistance área. On the other hand, if we eventually break above 76.32 level, the door can re-open to significantly higher prices.

 

 

 

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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