Analysis 20-01-25

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 V-Power setup signal within possible Golden Setup

EURNZD

On D1 the roof has establised at 1.6919 (purple line) and the floor has established at 1.6690 (Maedium Spring Green line).

The low tested the low area over the last day at 1.6690. The low four weeks ago also bottomed near that area at 1.6690 to 1.6628

 

Now let´s look the situation actual in the same time frame (D1) and how its movement develops. In the chart we can see a bearish trend (320 degrees) which implies a very steep downward move formed by a climatic move. This climactic move, is a sign that the bearish trend reversal is about ocurr.

 

Looking at the 4 hour chart, you can see more clearly the point exactly were occurred the break out above steeper trend line on January 14th. The levels 1.6690 and 1.6628 act as support área at the moment were the price may be bounce upside.

 

If this pair continue down and cut cross under the support área, it will give more of a bearish look from a technical perspective at least until the next support at 1.6527. See chart on H4.

 

Technically, the EURNZD on the hourly chart below is currently moving within a descending channel.

The bottom of channel is the long – term bearish trend on D1 and H4.

Channels are just another tool in technical analysis which we can use to determine good places as entries points togheter with possibles Golden/V- Power setup.

 

 

This small teaching lesson is about channels, before to analysis the possible Golden setup in this pair.

 

Channels (Technical Analysis)

If I draw two parallel lines each other at the same angle (either uptrend or downtrend) I will have created a channel. Here, I'm taking this trend line theory.

All channels are formed by a top and a bottom which represent potential support (buy) or resistance (sell) areas.

How drawing the lines in a channel

Ascending channel (Up Channel): Simply we draw two parallel lines at the same angle as an uptrend line and then move that line to position where it touches the most recent peak. This should be done at the same time create the trend line.

Descending channel (down): Simply we draw two parallel lines at the same angle as the downtrend line and then move that line to a position where it touches the most recent valley. This should be done at the same time you create the trend line.

We can see in the H1 chart of EURNZD a serie of bullish and bearish channels.

 

 

There are different ways to operate a channel. Let's see the two most common by each one (Long and Short):

Long Trade:

  1. When prices hit the Lower trend line or are near the boundary of the trend channel this may be used as a buying area.
  2. When prices are OUTSIDE of the bearish trend channel i.e. channels overshoot

Short Trade:

  1. When prices hit the Upper trend line or are near the boundary of the trend channel this may be used as a selling area.
  2. When prices are OUTSIDE of the bullish trend channel i.e. channels overshoot

 

Brief list of things to remember about channels

  • Drawing parallel lines at the same angle.
  • The bottom of channel as well as prices outside of the channel are considered a buy zone
  • The top of channel as well as prices outside of the channel are considered a sell zone
  • We Do Not Ever force the price to the channels that we draw
  • Is not correct when a channel boundary is sloping at one angle while the corresponding channel boundary is sloping at another because it lead a others formations (triangles, wedges and so on).

 

 

 

Signals V_Power_Setup and Possible Golden Setup at the moment

The following signals were get from MT4 alerts on January 22th and January 23th 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

 

 

 

 

 

 

 

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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