Setups - V-Power

In this section you will see real-chart examples of the trading system: V-Power

 

 

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

 

 

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

 

 

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

Trend Bearish, Strongly Bearish, Trend Bullish, Strongly Bullish and how to detect steeper trend line

Mike says:

 

=> 0 degrees to 45 degrees, it is a bullish position.

=> 50 degrees to 90 degrees, it is a strong bullish position.

=> 315 degrees to 360 degrees (0 degrees), it is a bearish position.

=> 270 degrees to 310 degrees, is a strongly bearish position.

 

In the sketch below and for purpose of visualisation i've drawn a circle divide into smaller portions (45 degree angles).


Now, we can placed theses trends into four ranges/sections:

Section 1: Bullish Trend (0 degrees to 45 degrees)

Setion 2: Strong Bullish Trend (>45 degrees to 90 degrees)

Section 3: Bearish Trend (315 degrees to 360 degrees)

Section 4: Strong Bearish Trend 270 degrees to <315 degrees

The image below shows the four sections:

 

A steeper trend line is a form of a climactic move. This concept it´s important because is also a sign that a trend reversal will occur. Therefore, a steep upward move we must place it in Section 1 (greater than or equal to 30 degrees to 45 degrees), a very steep upward move we must place it in Section 2 (>45 degrees to 90 degrees), a steep downward move we must place it in Section 3 (greater than or equal to 330 degrees and less to 360 degrees) and a very steep downward move we must place it in Section 4. See image below

 

To summarize,

  • upward move = Section 1 (>0 degrees and < 30 degrees)
  • steep upward move = Section 1 (>= 30 degrees and <=45 degrees)
  • very steep upward move = Section 2 (>45 degrees to 90 degrees)
  • downward move = Section 3 (>330 degrees and <360 degrees)
  • steep downward move = Section 3 (<= to 330 degrees and >= 315 degrees)
  • very steep downward move = Section 4 (<315 degrees to 270 degrees).

 

I will use the next example on AUDCHF to explain how to detect steeper trend line and and thus be able to validate if it is a climatic movement with highly profitable potential.

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 0.6890 and 0.6822 (short term), Support at 0.6686 and 0.6500. Since December 30th the trend has been too bearish. The major support @ 0.6686 has been boken.

 

 

The next screenshot on H4 shows the actual situation. We can see how the price strongly break out below the major support @ 0.6686. The bearish solid line is labeling the initial move.

A break out and close below .06686 confirms the underlying moving bearish trend in this time (labeled with red arrow).

 

The starting point in the chart setup is to look to the one-hour time frame chart. The next step is to plot a trend line. In this time the trend is bearish. Therefore, we will draw a downtrend line(labeled with solid red line) which is the initial move. We can see that initial move is in the section 3 which it involves a Bearish Trend (315 degrees to 360 degrees). This trend line is our first point of reference. See chart.

 

Now in the same time frame H1, as price progresses, we will need to draw a second, smaller trend line. This second trend line (labeled with solid orange line) is steeper compared to the first. It is also the smaller of the two. By the time we spot the second trend line, we will notice that price has deviated away from the main trend line very sharply. We can see this second move is in the section 3 which it involves a Bearish Trend (315 degrees to 360 degrees) around 330 degrees. This trend line is our second point of reference and first steeper Trend Line. See chart.

 

But la trend contines down, again we will need to draw a third, smaller trend line. This third trend line (labeled with dotted black line) is very steeper compared to the first and second. It is also the smaller of the three. By the time we spot the third trend line, we will notice that price has deviated away from the main trend line very sharply. We can see this third move is in 315 degrees . This trend line is very steeper. See chart.

 

It can be see a bullish divergence formed (green rectangle) but no is near to the major support

It’s important for a clear Golden buy Setup, look for:

  1. A regular divergence on M30 or H1 and at the same time on the Major Support @0.6686
  2. A major Support price level. In the chart above on D1/H4 there is a Major support which is the November low price at 0.6686
  3. Matured Downward Trend H1: There is a very steep downward move on H1 wich cut cross the major support.

 

Golden Setups which occurred recently

GBPNZD

The following screenshot shows the D1 Time Frame of GBPNZD. The lows from October (3 month lows) was tested (labeled with red circle).

GBPNZD has Relevant Key Levels like Resistance at 2.0022 (Purple line) and 2.0558 (Purple line) and Support (Medium Spring Green line) at 1.9311. Also a short -term support at 1.9420.

 

The following screenshot on H4 timeframe shows the area where the price action bounced the previous resistance área (labeled with green rectangle). The bearish solid line is labeling the initial move. A bullish divergence (green rectangle) developed in this same time frame which already gave a signal that a reversal to the upside is about occur.

 

The starting point in the chart setup is to look to the one-hour time frame chart. The next step is to plot a trend line. In that time the trend was bearish. Therefore, I drawn a downtrend line (labeled with solid red line) which is the initial move. We can see that initial move was in the section 3 which it involves a Bearish Trend (315 degrees to 360 degrees) around 340 degrees (downward move). This trend line is our first point of reference.

As price did progresses, I needed to draw a second, smaller trend line. This second trend line (labeled with solid orange line) is steeper compared to the first. It is also the smaller of the two. By the time i spot the second trend line, we will notice that price has deviated away from the main trend line very sharply. We can see this second move is in the section 3 which it involves a Bearish Trend (315 degrees to 360 degrees) around 330 degrees (steep downward move). This trend line is our second point of reference and first steeper Trend Line. See chart.

A bullish divergence (green rectangle) developed in this same time frame which already gave a signal that a reversal to the upside is about occur.

An upward reversal (V Formation labeled with blue color) formed a couple days ago. The price moved up from this pattern (V - Formation).

 

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

 

 

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

 

XAUUSD

In the D1 time frame we can see on XAUUSD a strong bullish trend 8 days ago. Price broke up strongly the bearish trend on December 23th and keep going up.

The Revelant Key Levels are Resistance at 1557.04 (Purple line) and Support (Medium Spring Green line) at 1445.59.

The major resistance is about to be tested.

 

The next screenshot on H4 shows the actual situation. The upward move (very steep upward move) started with a break out above the bearish trend on December 23th and today the resistance área is about to be tested.

 On H1 time frame, the bullish steeper trend line (dotted green color line and labeled with number 1) formed by a climatic move (Step 1: How to detect the pattern?) is a clear sign that the bullish trend reversal is about ocurr. It can be see a bearish divergence formed (red rectangle) which gave a signal that a reversal to the downside is about to happen.

  

 

It’s important for a clear Golden Sell Setup, look for:

  1. A regular divergence on M30 or H1 and at the same time on the Major Resistance @1557.04 (Purple line)
  2. A major resistance price level. In the chart above on D1/H4 there is a Major resistance which is the August high price at 1557.04 (Purple line)
  3. Matured Upward Trend H1: There is a very steep upward move on H1. It’s necessary that the upward move cut cross the major resistance and then develops a false break out to upside.

 

Golden Setups which occurred recently

USDCHF

The following screenshot shows the D1 Time Frame of USDCHF. The lows from August (5 month lows) are being tested (labeled with red circle).

USDCHF has Relevant Key Levels like Resistance at 1.0026 (Purple line) and Support (Medium Spring Green line) at 0.9659. A bullish Pin Bar forms right around this strong support.

 

The following screenshot shows the H4 time frame. It can be clearly see the long - term support level (Medium Spring Green color line ) which was penetrated (stop hunt below the support) by the price action (labeled with the red circle). The fall below this floor could not send the price lower early yesterday.

The bearish solid line is labeling the initial move. The bearish dotted line is labeling the climatic move  which penetrate the support level on 0.9659. Also it develops a V-Formation labeled with number 1. Price has moved up from this pattern formed above 0.9659 key support recently.

 

 

On H1 time frame below shows a steeper trend line (dotted line) formed by a climatic move (is a sign that the bearish trend reversal will occur)

The key support level was penetrated and an upward reversal (V Formation labeled with blue color) formed a couple days ago. The price moved up from this pattern (V - Formation).

 

The following chart shows the time frame M30. It can be seen a downward climatic move wich had a duration of 3 days (The Smart Money 3 -Days - Cycle). As soon as the sell stop area was reached (where many traders of the herd have placed their protective stops) the smart money heavily buyed into the sell orders (their absorbed the triggered buy stops from the herd). And then they immediately and sharply reversed the price (Bullish V-Formation).

A bullish divergence (green rectangle) drawn with this indicator Divergence Box Indicator show the price strengthen from MACD. The divergence ends and it move above zero level. Then the price break out above the steeper trend line.

The downward climatic move did penetrate the support level at 0.9659 and therefore it did give a valid Golden Setup.

 Along these lines, we had 3 things on USDCHF which produced a Golden Buy Setup:

  1. Matured Downward Trend: H1/M30
  2. A major Support Price Level
  3. A regular divergence 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

 

 

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

 

GBPAUD

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 1.9093 (Purple line) and Support (Medium Spring Green line) at 1.7559.

A Bullish candlestick is forming on upside trend line as well as divergences and V formations in lower time frame. The chart also show a possible exhaustion and turning points (labeled with red circle).

 

 

On H4 below shows a steeper trend line formed by a climatic move. This climactic move, is a sign that the bearish trend reversal will occur. The green rectangle are showing the base area where the price bounce recent upward. Although the indicator in this time frame does not draw the divergence, we can see the price which move above zero level (labeled with red circle). This could indicates a bullish boost.

 

The following chart shows the H1 time frame. A bullish divergence (green rectangle) developed in this same time frame which already gave a signal that a reversal to the upside is about occur. Also a double V – Formation subsequently developed when the divergence ends.

 

The following screenshot shows the time frame M30. A bullish divergence (green rectangle) drawn with this indicator Divergence Box Indicator show the price strengthen from MACD.

 

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

 

AUDCAD

 

Price sold off from the resistance area that formed at the 0.9118 (Purple Line) resistance level last week. (mentioned in prior post).

This week, we’re seeing another rejection of the bulls at that Long – Term Key Resistance área at 0.9139 and 0.9118 (Purple Line) on D1 time frame.

 

 On the H4 time frame a red rectangle is highlighting the area where the price action nearly penetrated the major resistance level. Top of the recent trading range remain at the 0.9118. Bottom of the recent trading range at the 0.8832.

 

The following chart shows the H1 time frame. We can see the purple major resistance line @ 0.9118 which was penetrated (Stop Hunt/Final Accumulation above the resistance) three days ago by the price action. 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. Despite the recent Divergence sell signal, the price remained upward toward the next resistance at 0.9139.

 

 

If we zoom in the same time frame (H1) an Inverted V- Formation has triggered a break down in prices.

 

 “Only after this price level is reached the inverted Vs (sell trades) is completed. These chart patterns gave the name to the V-Power system." By Mike.

 

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

 

 

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

 

AUDCAD

An interesting setup is in the works on AUCAD/CAD as the bears can take back control at a major resistance area. Is this beginning of a longer-term move to the 0.8832 lows?

On H4 we’re seeing the market is going to hit your major resistance level. The Revelant Key Levels are Resistance at 0.9118, Support at 0.8832.

 

 

On H4 Time Frame the market is under resistance near the top of the recent trading range. Given the congested sideways (around 150 pips) chart conditions, price could break strongly down or up from here, watch the first break for clues to the short term direction.

A break and close above 0.9118 could see prices break out of the recent sideways congestion on H1 and activate a short term uptrend. On the other hand, a clear Golden Setup sell signal would activate a short term downtrend.

Top of the recent trading range at the 0.9118. Bottom of the recent trading range at the 0.8832.

 

 

The following chart shows the H1 time frame. We can see the purple major resistance line @ 0.9118 which is being penetrated (Stop Hunt/Final Accumulation above the resistance) by the price action. 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.

The M30 chart shows the price action that lead to the stop hunt above the purple major resistance line on H4. The bullish move started with a strong and steep initial move. The image below show the steeper trend line drawn with green color and the price weakening from MACD.

 

 Let's remember, the steep and matured trend are prerequisites number 1 for a clear Golden Buy/Sell Signal Setup.

Now, look for Bearish Divergences M30 near to long term resistence level (labeled with a purple line) and sharp reveral.

 

EURGHF

 

In the chart below (H4), the longer – term on currency pair EURCHF is  still bearish (drawn with the red line); we can see the major support is being tested near to 1.0861. The Revelant Key Levels are Resistance at 1.1056, Support at 1.0861.

 

 

 

The following screenshot shows the H1 time frame. There was a preceding steep downward move which consists of 3 strong moves to the downside. The first move started on December 13th, the second move was on December 17th and the lasta move on December 19th.

The MACD Divergence Box Indicator detected a bullish divergence (green rectangle) which gave a signal that a reversal to the upside is about to happen. Also we can see the exact point where the bullish divergence over.

 

 

 

In the screenshot below shows the time frame M30. The major support level price was penetrated slightly and an upward reversal (V Formation labeled with blue color) is running in this moment.

 

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

 

 

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

 

USDCAD

This week, we’re seeing another rejection of the bears at that major support área at 1.3112 on D1 time frame. This major support level acted as bearish correction during the bullish trend 30 days ago on November 5th (labeled with red circle). A bullish Pin Bar reversal formed six days ago on this same level 1.3112

 

 

Let’s look how the fibonacci retracement levels are considered a predictive technical indicator. These retracement levels attempt to identify where price may be in the future. I start with the Price distance of each wave. The price distance of each wave is measured as a vertical distance from beginning of wave to the end of the wave. I only consider 3 waves.

The following chart on D1 shows 3 waves, the Wave 1 starts at A and ends at B, the Wave 2 starts at B and ends at C and the Wave 3 starts at C and ends at D.

 

The most common Fibonacci ratios used in the stock markets are:

Multiples = 1 – 1.618 – 2.618 – 4.23 – 6.85

Ratios = 0.14 – 0.25 – 0.38 - 0.5 & 0.618

The major common retracement we may look for in a typical wave 2 pullback are a 50% or 62% retracement of wave 1.

In the D1 time frame we can see on USDCAD the 50%- 61.8% retrace levels of a major up move on November 5th these levels become a future reference area where the price can bounce (labeled with red box)

 

Note: Some statistical information behind wave 2’s while we are on the subject of wave 2’s.

  • It’s expect only 12% of wave 2's to hold 38% retracement of wave 1
  • We can anticipate 73% of wave 2 retracements between 50% to 60%
  • We can anticipate 15% of wave 2´s to retrace below the 62%

 

On H4 time frame we can see the price action on the support área 1.3114. Also the screenshot on H4 shows the actual situation where the price is reacting to 50%- 61.8% retrace levels (labeled with red box). Two bullish  divergence also formed to long term support level. 

 

Trade ideas: On the one hand, look for a pullback with a clear V- power Setup buy signal on H1 whilst price remains above the 1.3114 – 1.3101 support área- On the other hand, if we eventually break back below 1.3101 level, the door can re-open to significantly lower prices.

 Along these lines, we have SEVERAL things on USDCAD which maybe produces a V Power Setup:

  • Matured Upward Trend on D1
  • A major support price level @ 1.3114
  • A regular divergence on H4. Also we can look for on H1/M30
  • The price broke above downward steeper trendline

 

EURGBP

 

In the chart below (D1), the long term bias is strongly bearish (labeled with the red arrow); price is holding above the 0.8322 long term support area and could move back up towards recent highs at 0.8675, then short term resistance at 0.8791.

The 0.8322 support level is a strong technical support base has formed after prices held firmly during 4 times (labeled with black arrows)

 

 

If we zoom in the same time frame a steeper trend line has been break and the price remains above .8496 and .8327 support área. At the same time there are a bullish divergence and a nice V Pattern.

There's a chance of an AAA+ setup. This setup come within a new upward trend on D1. Therefore, wait the first box(es) of a new direction on the time frame D1 because is a good place for an early entry into the D1 trend.

On the 4 Hour chart formed a bullish divergence .8327 support área. Therefore we already have two divergences (D1/H4) and twos strong V formation (D1/H4).

 

Mike's recommendations, “If you want to stick to the original VPower rules 1:1 (which you should especially at the beginning) then you would need to wait until the first upward box will be drawn. Please remember that the first upward box is a full bodied red box until a new high is reached”

 

Within this new D1 up trend we will consider look for entries on H1 (according to the 5 rules) in direction of the D1 trend

To summarize,

  • Steep downward trend line = OK (during 47 days)
  • Matured DownWard Trend= OK (both downward moves penetrate the major support level 0.8322)
  • A major support price level on D1= OK (0.8322 level)
  • A regular divergence on D1/H4 = OK
  • Strong V-formation on D1/H4 = OK

 

 

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

 

 

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

 

CHFJPY

  This week, on W1/D1 we’re seeing the market is going to hit your major resistance level that could act as an “Event Area”. The Revelant Key Levels are Resistance at 118.89, Support at 110.16 and 108.79. Since November 25th the trend has been bullish.

 

 

 Bearish Pin Bar on D1 formed three days ago near at the highs around at 118.89 level (counter-trend) A sharp reversal may now come.

 

 On H1 time frame a  “V Pattern” formed within of the Pin Bar on December 13th under the 118.89 resistance level.

 

The solid black line are showing the base trend line of the initial move on the 1 Hour chart. The dotted line are showing the upward steeper trend lines.

However, the steeper upward trend line has not yet penetrated the major resistance level 118.89 that is prerequisite number 1 for a Golden Setup

Let's remember, the steep and matured trend are prerequisites number 1 for a clear Golden Buy/Sell Signal Setup

Now, look for Bearish Divergences H1/M30 near to long term resistence level (labeled with a blue line)

To summarize,

  • Steep upward trend line = OK
  • Matured UpWard Trend= NO
  • A major resistance price level on W1/D1= OK
  • A regular divergence on H1 /M30 = NO

 

Golden Setups which occurred recently

AUDUSD

In the chart below (D1), we can see on AUDUSD a bearish trend (labeled with the red arrow); we saw potential for it to re-test recent lows near 0.67680 and .67236.

 

On H1 time frame the market (AUDUSD) is making a pattern of lower highs and lower lows for a downtrend. Note: I think that observing a market’s price action, from left to right, is the better way to identify a trend. In the chart below, a new downtrend was tentatively confirmed because the swing points are lower i.e. the trends  ebb and flow and they will often retrace back to the previous swing point or slightly beyond it, before the trend resumes again.

 

  

In the screenshot below shows the time frame M30 with a first bullish divergence inside the bearish triangle on November 21th. However, the price continued to fall very close to the support on D1 (key long term level). A second bullish divergence developed on November 28th

  

A day after the major support level price was broken (the sell stops of the herd were triggered below the support) the sharp and strong reversal to the upside occurred. Prices moved up strongly from this Golden Setup that formed at the 0.6768 level and a trend change takes place because the last Lower Low now be came in Higher Low. See chart below.

To summarize,

  • Steep downward trend line = OK (during eight days)
  • Matured DownWard Trend= OK (both downward moves penetrate the major support level 0.6768)
  • A major support price level on D1= OK (0.6768 level)
  • A regular divergence on H1 /M30 = OK

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

 

 

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

 

 

Golden Setups which occurred recently

NZDUSD

On NZDUSD (H4) despite the recent break out higher, the bias was bearish with the triangle chart pattern that occured near to resistance level 0.6566

 

In the screenshot on H1 shows the steeper upward move that triggered a short term Golden Sell Setup.

 

 

The bias is still very bearish whilst prices remain below the 0.6680 to 0.6717 resistance area. The last week situation on NZDUSD showed double bearish divergence (H1) and nested divergence (H1/M30) very close resistance area.

A V-Power sell signal within the Golden Sell Setup on NZDUSD would have looked similar to the drawing in the following screenshot (however there was no signal from V-Power)

 

The next chart showed a bearish divergence on the timeframe M30 developed also within bearish divergence on H1. Therefore, both edges (Divergences and Resistance level) occurred at the same time, then the probabilities of both edges added to each other.

 

Then this two divergences and the major resistance which already gave a signal that a reversal to the downside will most probably occur and effectively fell below 0.6548 level. The last Higher High and Higher Low they now be came in Lower High and Lower Low. See chart below.

The following screenshot shows where the Stop Loss and Take Profit were located. The stop loss was placed at the high of the divergence previous. The sell entry on H1 was during red boxes (was at the beginning of a new trend on H1). As we are looking for a sell, then made sure  do so AFTER NZD/USD has closed below the steeper trendline resistance area. The Take Profit was placed to 1R away from the entry point; therefore, the trade was a risk reward ratio of 1 to 1 (around 28 pips).

Conclusion:

Stop Loss @ .6574 (labeled with the red arrow)      

Entry  @ .6548 (labeled with the black arrow)

Take Profit @ 0.6526 (labeled with the green 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

 

Possible Next Golden Setups at the moment

 

CADJPY

In the D1 time frame we can see on CADJPY the Price Action very close to the resistance area labeled with blue color. Price moved up slightly from the Bullish Pin Bar that formed 4 weeks ago at the 81.377 level. A V-Power buy signal within the Bullish Pin Bar triggered upward prices.

The next screenshot on H1 shows the actual situation. The upward move started with a strong/steep initial move on December 12th  and today the resistance area is being tested.

Also we can see on H1 a bearish divergence near to long term resistance level (labeled with a blue line).

 

Along these lines, we have 3 things on CADJPY which maybe produces a Golden Sell Setup:

  1. Matured Upward Trend
  2. A major resistance price level
  3. A regular divergence on H1

 

 

 

 

Thorsten, one of our leading members in the private V-Power group, made 6 setup announcements on Monday. And I have forwarded these setups on Monday to the public V-Power group, check yourself :)

4 of these 6 setups produced entry signals and all these 4 setups produced huge winning trades today. That's a 100% win rate and the trades produced a lot of won R (R = risk of trade).

Thorsten and the other traders of the private group are posting setups often. From time to time I forward the trades.

But soon I will provide a new FREE service for you, where I will inform you once per week about new V-Power setups (of course only if you are interested).

I will publish the free service within the next 1-2 months. As always, if I could clone myself, then the new FREE service would already be running since a few months. So please be patient with me :)

The setup type which Thorsten announced are steeper trend line setups:

Read More About Steeper Trend Line Setups

 

Read More About V-Power (The System Explanation)  

 

 

The following screenshots are showing the moment when Thorsten announced the setups: 

 

 

 

 

 

 

Here is the detail view of the EURUSD H1 chart with the steeper trend line analysis:

 

 

Here is the detail view of the EURJPY H1 chart with the steeper trend line analysis:

 

 

Here is the detail view of the EURNZD H1 chart with the steeper trend line analysis:

 

 

 

Here is the detail view of the GBPCAD H1 chart with the steeper trend line analysis:

 

 

 

 

Here is the detail view of the GBPUSD H1 chart with the steeper trend line analysis:

 

 

 

Here is the detail view of the GBPJPY H1 chart with the steeper trend line analysis:

 

 

And here you can see the thank you messages to Thorsten from the other members of the private group:

 

 

As you can see from the screenshot above, members are able to detect setups on their own. E.g. Angelika took a successful entry also on CHFJPY :)

 

The next screenshot shows the EURUSD trade while it was running. As you can see, the fully automatic entry feature of V-Power entered with 2 partly positions. Thorsten uses the trend line target feature of V-Power. This means that V-Power automatically adjusts the targets according to the trend line (trend line must have the name "t"):

 

 

And here you can see the targets are reached on EURUSD:

 

 

GBPUSD made an even bigger move:

 

 

GBPCAD and GBPJPY you can check yourself :)

 

 

Our member Thorsten, who I know as a trader since 8 years, has posted dozens of highest quality setups in the private V-Power group during the past weeks. I have forwarded many of these setups to the public V-Power group.

Thorsten has specialized in detecting steeper trend line setups. If you don't know these setups yet, the please read this article: Steeper Trend Line Setups Explained

Such setups are money magnets. The time you will invest to understand these setup will be paid back to you a thousand times.

From the feedback from members of the private V-Power group like "thank God i'm in good hands" and "Yep, Thorsten's the man" you can see that he knows his stuff very well :)

The following screenshot shows the EURGBP trade he recently selected and the trade handling.

Thorsten knew why he selected this trade and where to exit the trade. Read on to learn from Thorsten...

 

 

The following screenshot shows the moment when he announced the setup live:

 

 

Here is a bigger view of the EURGBP chart in the moment when the setup was announced:

 

 

This chart shows the moment when the trade started with automated entry enabled:

 

 

Thorsten saw that the risk/reward was not the best because of the bigger stop distance (this time) and the relatively small space until the rising steeper trend line will be reached. But he stayed with the trade because he knew that additional edges of the bigger picture help the trade to get a first class highest probability trade.

 

 

Here you can see where Thorsten closed his trade and where he posted the additional two edges from the bigger picture:

 

 

 

Here you can see a bigger screenshot of his exit (directly at the rising trend line):

 

 

In the following screenshot you can see the first additional edge of the bigger picture which helped the trade to succeed. On the weekly time frame you can clearly see that a previous recent high was taken out before the entry signal occurred:

 

 

On the time frame H4 you can see the second additional edge of the bigger picture. A nice bearish divergence developed which further adds to a successful sell trade:

 

 

And here you can see what happy members of the private V-Power group are saying about Thorsten's guidance :)

 

 

 

 

Successful trading to you! If you didn't download the FREE version of V-Power until now, then you can do it here: Download FREE Version

 

 

 

 

 

 

On Monday 3 V-Power setups were announcement in the private and in the public V-Power telegram groups.

The type of the setups was a steeper trend line setup.

Such setups are money magnets. The time you will invest to understand these setup will be paid back to you a thousand times.

YOU CAN READ EVERYTHING ABOUT THESE SETUPS HERE: Steeper Trend Line Setups

Here you can see the screenshot of the telegram messages when the setups were announced in advance:

 

 

1 of the 3 possible setups (NZDJPY) triggered an entry. Here is the bigger view of the NZDJPY 1 hour chart when the setup was announced:

 

 

On the first day after the setup was announced, there was no entry signal. But on the second day the entry occurred.

One great advantage of the V-Power Trading system is that you can use automatic entries. This means that you can let the EA enter into your selected setups while you sleep or while you are at work.

In the next screenshot you can see when you could have enabled the automatic entry for the announced setup. One of the 5 rules (day closed near the low of the day) were fulfilled therefore you enable the automatic buy entry MANY HOURS BEFORE THE ENTRY OCCURRED:

 

 

The V-Power EA will now watch the market for you (while you sleep or are at work) and will do an automatic entry if 3 rules are fulfilled.

The next screenshot shows the entry price level and the stop price level that the V-Power EA selected according to the rules. Exit can be done on a predefined target or wherever you want to exit according to your analysis:

 

 

The following screenshot shows the V-formation which gave the name for the V-Power trading system:

 

 

 

Happy trading to you! If you didn't download the FREE version of V-Power until now, then you can do it here: Download FREE Version

 

 

 

 

 

 

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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