Analysis 20-01-19

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

 

 

V-Power setup signal within possible Golden Setup

SHORT CADJPY IDEA (V-Power sell signal within the Golden Sell Setup on CADJPY)

 

Actually the trend is bullish on D1. The CADJPY on D1 has Relevant Key Levels like Resistance at 85.22 (purple line) and 84.32 (dotted black color line). Support at 81.27 (Medium Spring Green line). The levels 85.22 and 84.32 act as resistance área at the moment.

The major resistance area is being tested.

 

 

On the 4 Hour chart it see three upward moves (two upward moves and a steep upward move). A first weakening section  from MACD labeled with orange dotted line is showed in the screenshoot in this time frame, however the price action kept going up. A second weakening section  from MACD labeled with orange dotted line is showed and you can see the price testing the resistance área (85.22 and 84.32).

 

 

Now let´s look the situation actual in the time frame (H1) and as its movement was developed. The first upward move  show a tren by angle of 8 degrees. The second upward move shows a trend by angle of 17 degrees (upward move) and the third upward move shows a trend by angle of 45 degrees(very steep upward move).

The last upward move formed by a climatic move with 45 degrees is a clear sign that the trend reversal is about ocurr. We can see a previous bearish divergence in this same time frame very close to resistance área.

 

 

 

Review Lesson V_Power_Setup

Part 1:

In addition, in this time frame on January 17th we did get a sell signal with V_Power (“V_Power_EA Possible SHORT on CADJPY. Check all rules!”) labeled with black arrow.

 

 

 

 

This signal is not necessarily AAA+ setups because we don’t see the trend on the timeframe D1, but is very nice signal and possible Golden setup

Please let’s remember:

  • The first upward box is a full bodied red box until a new high is reached. Wait until the first upward box will be drawn. Buy entries on H1 during green boxes
  • The first downward box is a full bodied green box until a new low is reached. Wait until the first downward box will be drawn. Sell entries on H1 during red boxes

 

The last rule applies in our case:

 “The first downward box is a full bodied green box until a new low is reached. Wait until the first downward box will be drawn. Sell entries on H1 during red boxes”

 

Here is the summary of the forex day trading rules for our high probability entries with V-Power: 

 

Rule #1: Search only for V-Power Setups after a day which closes near the high / low of the day!

Rule #2: A tight range must develop during the Asian session with a duration of 10+ hours!

Rule #3: An additional move out of the tight range in direction of the previous day must develop

Rule #4: Choose only those entry signals which occur at least 20 hours after the tight accumulation range started

Rule #5: Choose only those entry signals which occur at least 5 hours before the trading day ends

 

Mike says:

“The setups with the highest probability of success and those which produce on average a big subsequent move are the setups which produce the entry signal after 20 or more hours after the tight accumulation range started”

We know that we must not constantly count candles to trade the V-Power system, because the V_Power_EA will do this counting and the analysis for us.

 

RECAP

The EA gave us a signal when the next green box is drawn and the low of the actual day is lower than the lower of the previous day. This is already a partly check of the 5 rules.

The remaining rules need to be checked visually.

These red rectangles were drawn because a new low was reached and the previous 20 candles did not cover the same price level. As you can see in the screenshot this 20 candle concept in itself is already a great tool to detect the direction of the trend. The following screenshot shows the first red box and the space 20 + hours at the moment.

 

 

And these rectangles make it extremely easy to detect the high probability V-Power setups.

As soon as the first rectangle with a new color is drawn then we directly know that the direction of the trend has changed and that enough time (20 hours) has passed. This trend reversal could be a candidate for a high probability V-Power setup. 

All we have to do now on CADJPY is to check if all 5 previously discussed rules apply which define the highest probability V-Power setups.

 

 

Signals V_Power_Setup and Possible Golden Setup at the moment

 

The following signals were get from MT4 alerts on January 17th in real-time when a possible entry signal was created.

I recommend do the setps mentioned below:

 

V_Power_Setup:

Chek all rules.

Rule #1: Search only for V-Power Setups after a day which closes near the high / low of the day!

Rule #2: A tight range must develop during the Asian session with a duration of 10+ hours!

Rule #3: An additional move out of the tight range in direction of the previous day must develop

Rule #4: Choose only those entry signals which occur at least 20 hours after the tight accumulation range started

Rule #5: Choose only those entry signals which occur at least 5 hours before the trading day ends

 

Golden Setup:

  1. Switch to D1: Check major supports and major resistances with PTS_SuppRes_MTF_Indi indicator
  2. Switch to H4: Check major supports and major resistances with PTS_SuppRes_MTF_Indi PTS_SuppRes_MTF_Indi indicator
  3. Switch to H1:
    1. Check steep upward / downward trend line on H1
    2. Check matured upward / downward trend on H1
    3. Check 3 -Days - Cycle + Climatic moves on H1
    4. Ckeck regular divergence on H1 with PTS_MACD_Divergence_Box_Indi indicator
    5. Ckeck V- Formation on H1
    6. Check Sharply and Reversal moves on H1 
  1. Switch to M30
    1. Check steep upward / downward trend line on M30
    2. Check matured upward / downward trend on M30
    3. Check 3 -Days - Cycle + Climatic moves on M30
    4. Ckeck regular divergence on M30 with PTS_MACD_Divergence_Box_Indi indicator
    5. Ckeck V- Formation on M30
    6. Check Sharply and Reversal moves on M30

 

V_Power_EA Possible SHORT on GBPCAD.

Sell signal labeled with black arrow and red circle.

 

 

V_Power_EA Possible SHORT on GBPUSD.

 Sell signal labeled with black arrow and red circle.

 

 

V_Power_EA Possible LONG on AUDCHF. 

Buy signal labeled with black arrow and red circle.

 

 

V_Power_EA Possible SHORT on GBPJPY

Sell signal labeled with black arrow and red circle.

 

 

 

V_Power_EA Possible SHORT on USDJPY

Sell signal labeled with black arrow and red circle.

 

 

 

 

 

 

 

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. 

The following performance was achieved by me while trading live in front of hundreds of my clients:

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