Setups - Strong Trends With Magic Entries

In this section you will see real-chart examples of the trading system "Strong Trends With Magic Entries". Read more about the system

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GBP NZD Live Trade Setup -4H chart overview


Successful entry on TWO time frames - 1 & 5 min



4hr divergence Zero line cross over, a neat accumulation phase followed by a stop hunt (V reversal) giving confidence to trade 1min entry alert using STME .
Below is my live alert in the group to keep an eye for a 1min entry

The screen shot above was the pre signal to the 1min entry alert in the TGroup. I advised the TGroup that we were expecting a 1min alert within the STME alerter. Giving plenty of time for those in the group to take action.



This is the 1min Entry point and exit with my entry and exit points.

While the 1min entry was almost at a comfortable position, I again gave a pre signal in the TGroup to expect a 5min min entry. Below screen shot is the live announcement in the TGroup to expect a 5min entry.

 

The below image indicates my entry point, both momentum lines leading higher than current price, Price has exited the ATR bands and re-entered the ATR bands. Additional confirmation breaking passed the major 4hr trend line and entering STME steps alerting a 5min entry signal. With additional confidence MACD zero cross over into green I had confidence this was going to be a successful trade.
Same day exit at 2R reached. Satisfied with this result due to additional pips with the previous 1min entry.

 

GBPCAD 4H Live trade setup

4hr divergence with a neat accumulation phase followed by a deep stop hunt (V reversal) then major support at the 4Hr Trend line.

Below is my live alert in the TGroup to keep an eye for a 1min entry

Expectation of this trade was to reach at least 1.5 - 2R but managed a target of 1R.Following the rules MACD was clearly in the green; we had previous support at the 4hr trend line, momentum lines outside of the bands and red leading. With a deep Stoploss in place at 1R this was a good return already.

 

GBP NZD Live Trade Setup -4H chart overview


Successful entry on 5min Time Frame

4hr Trend line break and at a key support area following a previous downward deep cycle. A neat accumulation phase and a break out and support. The crossover of Macd adding additional confluence to a long position

Below is my live alert in the TGroup to keep an eye for a 5 min entry

Trade expectation to reach a target of 2R, below you can see key entry points momentum lines leading price as price retraces into STME steps initiating a second alert. Unfortunately, I was unable to take the first 5min signal, as I usually stay clear of Asian sessions due to higher spreads within the market but was still able to bank profits.

 

GBP CHF Live Trade Setup -4H chart overview

Successful entry on 5min Time Frame

4hr Trend line break and at a key support area following a previous downward deep cycle. This pair has a 1day Div Long Macd has yet to cross over so I had an understanding this could not yet be the move we anticipate so target to reach is 1-2R .

Below is my live alert in the TGroup 5 min entry ALERT

The STME alert came in at a great time using the 4H trend line as support. Both momentum lines where far from ATR bands while price had a deep pull back into the STME Steps.

 


GBP JPY Live Trade Setup -4H chart overview


Successful entry on 5min Time Frame

1 Day and 4hr divergence are present, Previous downward cycle in process with a break of a key price point and a break of the 4H Trend line. Following these break outs an Alert on the 1 and 5Min alert was alerted.
Below is my live alert in the group to keep an eye for a 5min entry

A reduction with MACD showing a near zero line cross, both momentum lines where far from ATR bands while price had a deep pull back into the STME Steps. Price consequently moved a great distance from the 4H trend line during the impulsive move and expected a deep pullback exit just reaching 2R

 

EURCAD Live Trade Setup -4H chart overview


STOPLOSS HIT entry on 5min Time Frame



1 Day and 4hr divergence are present, Previous downward cycle in process with a break of a key price point and a break of the 4H Trend line. Following these break outs an Alert on the 1 and 5Min alert was alerted.
Below is my live 5min Entry alert in the group

The entry has good moment lines far from price action and above ATR bands. Price had good moment and left the ATR bands with re-entry into STME steps leading to a 5min ALERT subsequently this trade hit the stoploss. Following the rules and keeping to the trading plan the stoploss was hit and this in turn has little impact on the profit.

 



  

Our standard setup "H4 divergence + M1/M5 MagicEntry" occurs many times per month. You will love this setup type because it can bring you big winning trades on a regular basis.

The underlying concept behind this setup is this:

- A MACD divergence is signaled by the Divergence Scanner on H4. The divergence alone is too weak to trade.

- You activate the MagicEntry-Alert Indicator to give you an entry signal on M1 and M5 in direction of the the divergence 

- Once you get a signal then you can be assured that the price is running extremely fast into the direction of the divergence.

- The strong momentum gives you a high probability for a winning trade

 

The following screenshot shows the details of a trade that recently occurred on GBPNZD in direction of a divergence. You can see the price level where you get the entry signal and possible stop / target level (you can define your own stop/target levels of course according to your preference):

 

 

The following screenshot shows the setup chart (H4) with the divergence. Labeled with the black arrow you can see that the entry signal was created in the middle of the very fast upward move. A good target placement could also be the descending trend line which acts as resistance: 

 

  

 

 

After you understood this setup type, I'm sure that it will be one of your preferred trading setups :)

 

 

  

Yesterday Brown our MagicEntry-Guru did a free weekend training session with 80+ members.

He showed how easy it is to trade MagicEntry on M5 in direction of divergences on H4:

 

 

By watching the video you will also see how you can train your skills, even during the weekends. The strategy tester of MT4 and a special trading simulator (which is available free) makes it possible to gain years of trading experience within only a few hours of training during the weekend: 

 

 

  

 

You can spot the trade setups with the MagicEntry-Indicator and you can receive alerts with the MagicEntry-Alerter.

You can receive alerts when divergences occur with the Divergence-Alerter.

If you want to understand the blue and orange lines of the MagicEntry-Indicator even betther then read these two articles: Article1 and Article2

 

 

 

 

Between 14th and 19th November there were 3 buy trades on EURAUD on the time frame M5. All 3 trades were winning trades.

As you probably already know, in the analysis section on this website I provide free divergence analysis on H4 charts.

I also draw the divergence on EURAUD as shown in the following screenshot. I always only select a special type of regular divergences. The divergences that I select are those that occur during a matured trend. These divergences are showing possible reversals of the trend direction.

You can compare such divergences with a football that is hold under water. The football wants to pop up above the water line.

 

 

You can use the free divergence analysis to trade all 3 main systems that I teach: MagicEntry, V-Power and Double Top/Bottom

In the following screenshot, labeled with the black circles, you can see the areas where you can also search for entry opportunities with our Double Top/Bottom (M30/H1) Trading and our V-Power Trading System.

 

 

 The following screenshot shows where the 3 successful MagicEntry-trades occurred in relation to the divergence on H4:

 

 

And now we will take a detailed look at the time frame M5 and see how these 3 trades on EURAUD could have been traded.

The following screenshot shows the first trade which occurred on 14th November:

 

 

The next screenshot shows trade 2 and trade 3. It's the same procedure with every trade:

After the blue and orange line started leading the price, then trade only the first pullback and the ride the subsequent move!

 

 

You can spot the trade setups with the MagicEntry-Indicator and you can receive alerts with the MagicEntry-Alerter.

Additional hint: As you can clearly see by comparing the screenshots above, the signal of the first trade was the least strong signal. At the first trade there was no strong momentum started by an impulse move. This was indicated by the fact that the blue and orange line didn't move together with the price and then started leading the price as soon as the price made the first pullback. Read more about strong momentum trades: Article1 and Article2

Gold made a nice uptrend on M30 and gave 2 good entry signals. The entry signals are V-formations within the reversal zone which is the area between the green lines.

In the area of the big red X the trend was not indicated as strong by the indicator. Right of the big X the blue and orange line started leading the price strong. This tells you that the strength of the trend is good. During this area entries are allowed. Therefore, you could have entered after the rejection at the two green arrows.

Within the area of the small X entries are not allowed. Although the trend was indicated as strong by the blue and orange line, the two green lines (the reversal zone) was no longer there.

Two Magic-Entry opportunities on GBPJPY M5 last Friday. The downward trend gained momentum indicated by the the blue and orange line which started leading the price strongly.

The price then reached the entry zone. Within this entry zone you wait for occurrences of price spikes to the upside which are immediately rejected. Those price spikes plus the rejection for an inverted V (for short trades). Those inverted Vs within the entry zone during a strong downward trend are the Magic-Entries which you want to trade with this system.

At the bottom of the chart you see a big V-formation. This tells you that the downard trend is most probably over. Further short entries should NOT be taken. Play the odds and wait for the next strong trend.

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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