As you can see this looks a lot as V-bottom formation which usually break over the neckline, retests it and then pumps. In this case, since the V is cut at 3/4 from a resistance/support zone I The reason for this is simple: anyone with knowledge of the Forex V Formation market understands that you must spread your risk over as wider area as possible, no matter how good the system, if you put all your eggs in one basket, you run the risk of losing everything. Thus, as with everything else, you should spread Join The V-Power Today Forex Day Trading Rules Here is the summary of the forex day trading rules for our high probability entries with V-Power: 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!
The Best Day Trading System For Forex Which I Know: V-Power
High Probability Trades Automated Trend Analysis Automated Trade Entries And Exits. The concepts of the day trading system which you will learn here and which I teach since can directly transform you into a winning trader! The V-Power Day Trading System works on forex and on other liquid markets like commodities and stock indices, forex v formation.
With this system you will be directly exploiting the behavior of the smart money, forex v formation.
You will probably get a complete new view on the financial markets. And if you use this day trading strategy as the entry method into longer term forex v formation then you will even dramatically boost the outstanding performance! You will learn everything you need forex v formation on this page. Please watch this video first :. Before you read further you can download the FREE version which you can use for an unlimited time on the pairs AUDJPY and EURCAD on live charts and you can train your skills on all trading instruments in the strategy forex v formation of MT FREE Version Of V-Power EA Download the FREE version of the V-Power Expert Advisor for MT4, forex v formation.
After reading this page you will be able to use the day trading entry technique to enter into big and strong moving trends. Then you will be able to enter trades of highest quality on a regular basis and you will join the absolute elite club of professional traders. And one additional benefit of the V-Power system is that you will be able to trade this concept even besides a normal day job and when you have only limited time for the charts!
Forex v formation automation possibilities of the V-Power system makes it possible for you, forex v formation. In order to fully understand the concepts of the underlying forex day trading strategy you should read the following 5 articles first :.
Article 1: How To Exploit The Smart Money. Article 2: Edges Which Will Work Forever, forex v formation. Article 3: The Role Of The Smart Money. Article 4: The Emotional Roller Coaster. Article 5: The Smart Money 3-Day-Cycle, forex v formation. Now that you have, hopefully :read the 5 articles you have learned about the 3-day-cycle of the smart money. And you should now understand why entering as early as possible into a new cycle is extremely important.
With the V-Power System you will be able to enter extremely early into the next 3-day-cycle with very high probability of success! As you read in the article "The Smart Money 3-Day-Cycle" I call the first day of the 3-Day-Cycle Level1. The Level1 is the most important level for entering with the forex day forex v formation strategy explained on this page.
The following sketch shows what I mean with Level1. On the left side you can see a bullish Level1. On the right side you can see a bearish Level And the automatic technical analysis of the V-Power Trading System will guide you to high probability entries into these Level1 moves.
The following sketch shows you the entry price levels which you will use to enter into high probability Level1 moves. The special form of the sharp reversals Vs and inverted Vs gave the system it's name:. If you want to enter into high probability trades during Level1 then you can't select any V- or inverted V -shape pattern and hope for a profitable trade. To select high probability trades the areas which are labeled green and red in the following sketch must have a special look:.
In the following sketch you can see the 3 components which define a good Level1 reversal which you will exploit:. The stop hunt 2 and the sharp reversal 3 are forming the V- and the inverted V-patterns which we are selecting for our entries. Join The V-Power Today. I will explain what happens during the 3 phases based on a bullish V-pattern :. During the sideward accumulation phase the smart money actively accumulates its long position. The price is not allowed to drop anymore.
The smart money absorbs all incoming short orders from the herd. This accumulation is a covered operation from the smart money. At this point nobody knows including me that the smart money has actively accumulated a long position and will soon reverse the price and start a new 3-day-upward-cycle.
The stop hunt phase final accumulation is a fast forex v formation out of the sideward channel in direction of the previous day s. In our bullish V-pattern example it's another fast downward move.
This fast move induces a lot of new short traders within the herd. Also protective sell-stop orders of long positioned traders get fished by this move.
During the downward move the smart money adds further to its long position. Now the price is stopped again, forex v formation. Bullish pin bars and other bullish reversal candles will now emerge. At this point after I see the pin bars I'm already alerted that a great forex v formation can occur! A sharp reversal to the upside with strong bullish full bodied candles will develop. The strong bullish candles will reach the highest high of the sideward channel accumulation pase very fast.
Now the long entry will be triggered! Now we will see with real chart examples how highest probability V-Power setups look like. The time frame where you search for the entries is always H1!
But from the above chart alone you would probably NOT see all necessary information to select these two V-patterns as valid high probability entries. We need to add more structure to the chart and define some rules to make it possible to detect these setups reliable. We start with adding the period separators to the chart to see where a trading day ended and where the new day starts, forex v formation.
This will give us more structure on the chart. Maybe you now start seeing some similarities at both setups in the following screenshot :. The first similarity of both setups is that the forex v formation move of the day before the reversal occurs ends near the extreme price of the day. The screenshot is showing the H1 time frame. The candle of the daily time frame closes near the high of the day before bearish reversal and near the low of the day before the bullish reversal :.
Because the daily candle closed so strong many of the already positioned traders of the herd will hold their positions during the Asian session. And for the same reason many new traders will prepare for an entry in direction of the strong daily candle. The herd is strong bullish before the bearish reversal and strong bearish before the bullish reversal, forex v formation.
On the day before the bearish reversal occurs the herd is in the "bullish thrill"-state as you can see in the following screenshot:. And on the day before the bullish reversal occurs the herd is in the "bearish thrill"-state as you can see in the following screenshot:. The bigger the emotional shift the bigger the subsequent price move after reversal will be on average. You can compare the effect of the emotional shift with the temperature of the air.
If after a hot day the temperature of the next day forex v formation only 5 degrees lower then this small change probably will not have a big impact on you. But if the temperature of the next days is 25 degrees lower then you will feel this temperate shift totally different.
It will be like a shock and you will probably talk a few times about the crazy weather on this day. For our highest probability V-Power setups the Asian session should have a special look, forex v formation. The price move during the Asian session should be a relatively tight range.
The process of actively and silently accumulating a big position from the herd takes time. The smart money must carefully absorb the orders of the herd without producing big price swings against the previous direction. Because it takes time to accumulate silently we will see a tight range which has a duration of many hours. A free space develops below when we wait for bearish reversals and above when we wait for bullish reversals the tight range.
We will later come back to this free space:. From the explanations above we can now define the second rule for our forex day trading strategy. For our highest probability V-Power setups we need a special move after the tight range of the accumulation phase.
We need to see an additional move into the same forex v formation as the previous day, forex v formation.
This move should be not too big. I will explain later why it should be not too big. This additional move brings the herd into the "euphoria"-state. The positions in direction of the trend are in good profit and live as a trader feels easy on that day. This additional move is the final accumulation trick initiated by the smart money. New traders from the herd are induced with this move and the smart money takes the counter part of those positions. This additional move also grabs protective stop loss orders of many traders of the herd who were positioned against the direction of the trend and now get kicked out of their position by a few pips, forex v formation.
From the explanations about the final accumulation by forex v formation smart money we can now define the third rule for our forex day trading strategy. An additional move out of the tight range in direction of the previous day must develop. The position which the smart money has actively accumulated during the tight range and during the final stop hunt move will now be distributed to the herd at a better price with huge profits.
A new profit release phase a new 3-day-cycle has started. The smart money stops the move by heavily absorbing all incoming orders from the herd. The smart money forex v formation no longer wants to keep their actions secret and allows that very clear reversal candle stick patterns develop.
As you can see in the rectangles in the following screenshot pin bars with long wicks can develop. There can also develop other types of reversal candle stick patterns. These patterns are an early signal that the smart money will now probably reverse forex v formation price:.
Forex Trading the 3 Bar Reversal Pattern
, time: 28:207 Powerful Entry Techniques to Find Exact Forex Entry Point
01/06/ · So basically we are looking for a v-formation. There is one candle that makes a higher high. Then there is one candle that makes a lower high. Then we enter short when the candle number 3 breaks the low of candle number 2. That is our confirmation that a reversal is in progress Join The V-Power Today Forex Day Trading Rules Here is the summary of the forex day trading rules for our high probability entries with V-Power: 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! 21/05/ · On Daily Charts, watch for a "V" formation (two down candles, immediately followed by two up candles) Enter a long position on opening of the 5th bar SL = below the swing low TP = , and trail the remaining using daily ATR Exact opposite for short entries. (can use a filter of the MA 89 - buy above, sell below for a more conservative approach)
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