Setups - V-Power
In this section you will see real-chart examples of the trading system: V-Power
I already introduced the steeper trend line (Pump And Dump) setups many times before.
On 19th December you could have entered short int exactly such a setup on NZDCAD. The original rules for this setup would have produced a 1R winning trade.
1R totally acceptable because of the very high winning percentage of this type of setup. But this trade had a very high probability give a much bigger winning trade!
And in fact, you could have enjoyed a 6R winning move from that setup!
Before I will explain why this setup could have produced such a big winner, I will make a small recap of the original V-Power pump and dump rules. (Click here for the complete details)
A possible pump and dump short setup develops if a steeper trend line develops away from a less steep (base) trend line. The thicker green rising trend line is the base trend line. The thinner green trend line is the steeper trend line. You can clearly see that room/vacuum develops between these two trend lines.
This vacuum is usually filled again. Therefore the base trend line makes a logical target area after we enter with an inverted V entry signal. The following screenshot shows the entry, stop and target area which would have resulted in a 1R winning trade:
But the winning move of that short signal went much further than to the base trend line. And this further move could have been anticipated with very high probability!
And you can find the reason for this big winning move if you analyze the H4 time frame.
You can see that the trend line of the upward trend (which lasted since October) was broken and that the V-Power short entry signal came exactly at the re-test of this broken trend line!
Armed with such trading knowledge you can decide the quality of your trading yourself. It all depends on how selective and patient you want to be with your trading!
Yesterday I made a live call of a long setup on GBPJPY which produced 50 pips within only 3 hours :)
The setup was an AAA+ setup because it occurred during the first pullback of the new trend on the daily time frame in direction of the trend of the daily time frame.
The following video explains the details of this trade:
The following screenshots are showing the explanation that I gave in the private group regarding this setup:
This was the situation on the daily time frame in the moment when i announced the signal:
This the corresponding H1 time frame:
The trade result:
Further explanations regarding the setup: