Analysis 20-01-29

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

 

 

Double Top Signal within Golden Setup ocurred recently

EURGBP

 

I´m going to explain the possible way how to trade Double Tops on the timeframes M30/H1 within MACD divergences on H1/H4

Mike has developed three strategies based on double top/double bottoms:

  1. Double Tops/Bottoms Within MACD Divergences
  2. Double Tops/Bottoms In Direction Of Trend Lines
  3. Double Tops/Bottoms After Trend Lines Are Broken

 

The following Mike’s sketch shows how Double Tops with fake breakouts look like. The fake breakout is the price move behind the left leg of the Double Top followed by a fast reversal:

 

This setup (double top) are initiated by the smart money when they want to reverse the trend. Smart money develops a final accumulation of the positions called traps.

 

These trade are profitable because there is a psychology behind the setups Double Top:

Before a double top is created by the smart money the smart money already accumulated a short position during the preceding upward move. The purpose of the fake breakout (2 -> the bull trap) below the left leg (1) is to mislead as much traders as possible into a long position. As soon as the majority of the herd starts buying into the fake breakout, the smart money starts selling heavily and absorbs all long orders of the herd. When this task is completed then the smart money drives the price very fast downwards. Now the double top is drawn on the chart. The trapped long traders are in panic and are selling their position back to get flat or even reverse their position. This shift of psychology in the herd creates these very fast and profitable moves after a double top with fake breakout is created.

 

Following screenshot shows a double top setup chart example:

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 0.8595 (long term) and Support at 0.8454. Since January 14th the trend has been too bearish. The major support @ 0.8454 has been broken. As can bee seen in the chart there is a previous giant bullish divergence.

 

 

 

The next screenshot on H4 shows the prevois situation which caused the faill, triple confluence with major resistance, double top pattern(H1) and divervence (H4/H1). Falling was around 80 pips.

 

 

 

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

  1. The initial move is the first trend line (labeled with solid green line) with 22 degrees. Upward move.
  2. The second move is the second trend line (labeled with solid orange line) with 65 degrees. Steep upward move.

A bullish divergence (red rectangle) developed in this same time frame which already gave a signal that a reversal to the upside is about occur and price weakening from MACD.

 Double Top/Bottom Indicator draws the Double top on January 14th at the major resistance. A rapid price action movement in the opposite direction (upward trend)occurs to the previous trend (bullish). This rapid price action is the release phase from the market maker.

 This indicator showed us precise point to enter (labeled with red rectangle) at the break of the neckline of the double top.

 

 

 

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

 

 

 

V_Power_EA Possible LONG on NZDCAD.

 Long signal labeled with black arrow.

 

 

 

 

V_Power_EA Possible SHORT on USDCHF

Sell signal labeled with black arrow.

 

 

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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