The V Power Trading System is a popular forex trading strategy used by traders to find trading opportunities in the forex market. The system is designed to identify trends and reversals by analyzing price action and providing clear buy and sell signals to traders. With a focus on swing trading, the V Power Trading System aims to capture big market moves while minimizing risk through effective money management strategies. In this article, we will explore the features, pros and cons, and a detailed trading strategy of the V Power Trading System.
What is the V Power Trading System?
The V-Power Trading System is a trading strategy developed by Mike Semlitsch, designed to exploit the never-ending cycle of how smart money works. This trading system gets its name from the characteristic V and inverted Λ patterns that happen on the forex charts.
It is based on logical concepts that combine multiple and positively reinforcing factors to form one big combined edge. The V-Power Trading System works on Forex and other liquid markets like Commodities, Stocks, and Indices, and it takes a lot of guesswork and tedious chart scanning out of the daily trading routine. It is partly automated, making trend analysis, entries, and exits simpler for traders.
The V-Power Trading System works based on the 3-day cycle of the smart money and is designed to enter extremely early into the next cycle. The system exploits three components of a good 3-day cycle: the accumulation phase, the stop hunt, and the sharp reversal against the direction of the previous day(s). This is achieved by selecting V- and inverted V-patterns for entries, which are formed by a stop hunt and a sharp reversal against the direction of the previous day(s). The time frame for searching entries is always H1.
V Power Trading System Strategy
The V Power Trading System is designed to take the guesswork out of daily trading routines, as it combines multiple factors to create a strong trading edge. To use the V Power Trading System, traders must search for V-Power setups after a day that closes near the high or low of the day. They should then look for a tight range to develop during the Asian session that lasts for at least 10 hours. An additional move out of the tight range in the direction of the previous day should develop, and entry signals should be chosen that occur at least 20 hours after the tight accumulation range started and at least 5 hours before the trading day ends.
This strategy is designed to exploit the 3-day cycle of the smart money and enter extremely early into the next cycle by identifying the accumulation phase, stop hunt, and sharp reversal that form the V- and inverted V-patterns. The V Power Trading System works on Forex and other liquid markets like commodities, stocks, and indices and can be used for both day trading and longer-term trading strategies.
It’s important to note that while the V Power Trading System can be an effective strategy for trading in Forex and other liquid markets, it should not be solely relied upon as the only source of analysis. It’s always recommended to use multiple forms of analysis and risk management techniques in your trading strategy to ensure the best possible outcomes.
Buy Signal
- Look for a tight accumulation range that develops during the Asian session, lasting for at least 10 hours.
- Wait for an additional move out of the tight range in the direction of the previous day’s trend.
- Choose only those entry signals which occur at least 20 hours after the tight accumulation range started and at least 5 hours before the trading day ends.
- Enter a long position when the price breaks above the high of the accumulation range.
- Place a stop loss a few pips below the low of the accumulation range or according to your money management strategy.
Sell Signal
- Look for a tight accumulation range that develops during the Asian session, lasting for at least 10 hours.
- Wait for an additional move out of the tight range in the direction opposite of the previous day’s trend.
- Choose only those entry signals which occur at least 20 hours after the tight accumulation range started and at least 5 hours before the trading day ends.
- Enter a short position when the price breaks below the low of the accumulation range.
- Place a stop loss a few pips above the high of the accumulation range or according to your money management strategy.
V Power Trading System Pros & Cons
Pros
- The V Power Trading System provides a clear set of rules for identifying potential high probability trades.
- It is designed to work on various liquid markets like Forex, Commodities, Stocks and Indices.
- The partly automated entries and exits help to take the guesswork out of the trading process.
- The strategy is based on the concept of smart money cycles, which can be a powerful force in the markets.
- The use of the H1 time frame allows for more frequent trading opportunities.
Cons
- The strategy requires patience and discipline to wait for the right setup to develop, which may lead to missed trading opportunities.
- It may be challenging for novice traders to learn and apply the strategy effectively.
- The partly automated nature of the strategy may not be suitable for traders who prefer a more hands-on approach.
- The reliance on historical patterns and cycles may not always hold true in rapidly changing market conditions.
- There is always a risk of loss associated with any trading strategy, and the V Power Trading System is no exception.
Conclusion
In conclusion, the V Power Trading System is a strategy that combines various concepts to create a reliable edge in trading. It works on multiple liquid markets, including forex, commodities, stocks, and indices. By using the V-Power System, traders can enter trades early in the next 3-day-cycle. The system has strict rules for entering trades, and traders must wait for specific patterns to emerge before making a move. However, like any trading system, it has its pros and cons. Traders can benefit from its high probability setups and the automation of tedious tasks. On the other hand, it requires patience, discipline, and the ability to follow rules consistently. Overall, the V Power Trading System is a useful tool for traders who are willing to put in the time and effort to master it.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
