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PS3 POWER PLAY

SECRET STRATEGY
MY “ULTIMATE PS3 POWER PLAYS”
FOR RAPID AND CONSISTENT PROFITS…

KUMAR KAUSHAL

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Forex Powerhouse Secrets

FOREX POWERHOUSE SECRETS


MY “ULTIMATE PS3 POWER PLAYS” FOR RAPID AND CONSISTENT PROFITS…

Copyright © 2021 KUMAR KAUSHAL.

All rights reserved. No portion of this book may be reproduced, stored in a


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in light of his or her financial circumstances. This material is for informational &
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transaction. All market prices, data and other information are not warranted as to
completeness or accuracy and are subject to change without notice.

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INTRODUCTION

Sometimes we are so frustrated with our trading that we don’t ever sit back and
look at the big picture.

I remember when I would try system after system, always losing money. The
problem was that through all that frustration, I never just sat back and looked at
the market properly. If I did, I would have seen that the answer was right there in
front of me.

The market is not against us, as when you are a losing trader, you normally think
this. The market is just there, in free flow. It creates recurring patterns that we can
profit from if we want to. This is something you have to understand. The market is
not against you, and it is not hard to make money from the market, you just need
a stable mind frame, and the money will flow to you.

This strategy is great because it works both with trending and counter trend
moves. It is also a PURE PRICE ACTION strategy, without the use of any indicators
etc… It has great risk reward and is a very high probability trading system.

I will cover everything you need to know including the setup, entry, stop
placement and trade management.

This strategy will be a great addition to your trading plan, and can be a very
powerful system when used as shown in this book.

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PRICE FORMATIONS

For PS3 Power Play Strategy 2, we will be looking at the following price
formations:

• W and M Power Play Formations

• Pivot formation

The W and M power play formations will be the actual price formation that will
trigger entry, and the pivot formation is what we will use in our trade
management.

You have already met Price Pivot Formations in PS3 Strategy 1, so we don’t need
to cover that again here (if you have not seen that yet, please go over that before
continuing – it is the section titled “The Pivot Formation” just before the PS3
Strategy 1 Trading Plan)

Although we are going to use pivots for trade management, there is an element of
using pivots in the W and M power play formations, so it’s very important to go
over the pivots section in Strategy 1 if you have not done so already, before you
continue.

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W/M PIVOT POWER PLAY FORMATION

This is a great formation that occurs A LOT in the market. I have coined this setup
the W or M Pivot Power Play. It takes advantage of the change from supply to
demand or vice versa, and is a very high probability setup.

The basis comes from the fact that when lower highs or higher lows are made,
then the market is telling us something about supply and demand. Higher lows
show more demand than supply and lower highs show more supply than demand.
It is on this fundamental force driving price that this strategy is based on.

W PIVOT – LONG FORMATION

The W Pivot Power Play formation is not an exact “W” in price; it is a pivot low
formation with a HIGHER pivot low directly after it.

Example of W Pivot Power Play Formations:

M PIVOT – SHORT FORMATION

The M Pivot Power Play formation is the opposite. It is a pivot high formation with
a LOWER pivot high directly after it.

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Example of M Pivot Power Play Formations:

Note how we are looking at small “w” and “m” patterns. We do not want large
moves to form this pattern. We want the bars to be congested and overlapping
rather than clean big moves.

WRONG FORMATIONS

Here are W and M formations that we are not interested in. Generally these are
not any good for us because we need too great a move to move our stop to break-
even, and so we want smaller entry and stop points in order to take lower risk
trades.

These are still W and M formations but they are not the type we want to trade in
this strategy:

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We will be using “W and M” formations for generating entry signals for this
strategy (covered in next chapter)
WHEN DO WE LOOK AT OUR W/M PRICE FORMATIONS?

We will not just be blindly entering whenever we see the W or M Pivot Power
Formations. We want to enter our trades at the point where there is the highest
probability of the trade going in our favour. We do this by identifying high
probability action areas, and then look for our formations in these high activity
zones.

We do not use any indicators in this strategy, therefore we do not need to cover
any chart setup. We will simply just use candlestick charting.

BUT, we still need to identify the best buying or selling areas where we can pay
attention to the chart to look for a W or M Pivot Formation.

We will do this by using Trendiness.

We want to see a trendline break at or near the formation of the W or M Pivot


Formation, and only then is it a valid trade to enter.

The trendlines can be mini trendlines, but we also always need to pay attention to
the major trendlines on the chart, to see if there is any formation at the break of
these major trendlines.

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PS3 STRATEGY 2 TRADING PLAN

TRADE SETUP

TRADING TOOLS

• Candle Stick Charting

• Any Timeframe

• W and M Pivot Formations

• Trendlines

TRADE ENTRY

LONG SETUP

• Trendline drawn on chart (minor or major trendline)


• Price has, or is poised to break the trendline
• W Pivot setup has formed

LONG ENTRY:

• Aggressive Entry: Enter on break of high of bar that identifies the 2nd price
pivot (higher low) in the W formation

• Conservative Entry: Enter on break of Neckline

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SHORT SETUP

• Trendline drawn on chart (minor or major trendline)


• Price has, or is poised to break the trendline
• M Pivot setup has formed

SHORT ENTRY:

• Aggressive Entry: Enter on break of low of bar that identifies the 2nd price
pivot (lower high) in the M formation

• Conservative Entry: Enter on break of Neckline

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TRADE STOP PLACEMENT

LONG STOP LOSS:


• Below low of 2nd pivot low in the W formation. (allow for broker spread)

SHORT STOP LOSS:


• Above high of 2nd pivot high in M formation. (allow for broker spread)

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STOP AND ENTRY WINDOWS

Every time frame set is treated differently. Having a 1 pip stop on the 5 min time
frame and then a 1 pip stop on the daily time frame just doesn’t make any sense.

The higher time frames need more room to breathe, and so entries and stops will
be slightly further away than the lower time frames.

The smaller the time frame the less of a break of price (above/below the entry
line) I need in order to enter, and the less distance I need to place my stop.

Each time frame will use the same distance for the entry and the stop, meaning
that if the amount is 5 pips for that time frame, I will use 5 pips as the distance I
need for the entry price to break by, before I enter, and I would also use 5 pips as
the distance that I place my stop away from the low/high I want to place my stop
at.

So here are the “pip distances” I use for the different time frames:

Time Frame Pip Distance

M1 and M5 1-2 pips


M15 2 pips
M30 and H1 3-4 pips
H4 and D 5 pips

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TRADE MANAGEMENT

BREAKEVEN RULE:

• Move stop to Break even (entry price) when your profit in the trade equals
the risk you put on the trade (when you are in profit the same number of
pips you risked on the trade) – this is 1 to 1 in Risk Reward.

LONG TRADE MANAGEMENT:

After the breakeven rule has been executed:

• 2/3 position taken off at a risk reward of 2 to 1 (so when the amount of
profit in pips is twice the risk taken on the trade)

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• 1/3 remaining position to be trailed by placing a trailing stop under each


MAJOR pivot low formed. (A major pivot low is a pivot that has 2 higher
lows on both sides of it)

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SHORT TRADE MANAGEMENT:

After the breakeven rule has been executed:

• 2/3 position taken off at a risk reward of 2 to 1 (so when the amount of
profit in pips is twice the risk taken on the trade)

• 1/3 remaining position to be trailed by placing a trailing stop above each


MAJOR pivot high formed. (A major pivot high is a pivot that has 2 lower
highs on both sides of it)

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TRADE OVERVIEW

LONG TRADE OVERVIEW:

LONG SETUP

• Trendline drawn on chart (minor or major trendline)


• Price has, or is poised to break the trendline
• W Pivot setup has formed

LONG ENTRY:

• Aggressive Entry: Enter on break of high of bar that identifies the 2nd price
pivot (higher low) in the W formation

• Conservative Entry: Enter on break of Neckline

LONG STOP LOSS:

• Below low of 2nd pivot low in the W formation. (allow for broker spread)

BREAKEVEN RULE:

• Move stop to Break even (entry price) when your profit in the trade equals
the risk you put on the trade (when you are in profit the same number of
pips you risked on the trade) – this is 1 to 1 in Risk Reward.

LONG TRADE MANAGEMENT:

After the breakeven rule has been executed:

• 2/3 position taken off at a risk reward of 2 to 1 (so when the amount of
profit in pips is twice the risk taken on the trade)

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• 1/3 remaining position to be trailed by placing a trailing stop under each


MAJOR pivot low formed. (A major pivot low is a pivot that has 2 higher
lows on both sides of it)

SHORT TRADE OVERVIEW:

SHORT SETUP

• Trendline drawn on chart (minor or major trendline)


• Price has, or is poised to break the trendline
• M Pivot setup has formed

SHORT ENTRY:

• Aggressive Entry: Enter on break of low of bar that identifies the 2nd price
pivot (lower high) in the M formation

• Conservative Entry: Enter on break of Neckline

SHORT STOP LOSS:

• Above high of 2nd pivot high in M formation. (allow for broker spread)

BREAKEVEN RULE:

• Move stop to Break even (entry price) when your profit in the trade equals
the risk you put on the trade (when you are in profit the same number of
pips you risked on the trade) – this is 1 to 1 in Risk Reward.

SHORT TRADE MANAGEMENT:

After the breakeven rule has been executed:

• 2/3 position taken off at a risk reward of 2 to 1 (so when the amount of
profit in pips is twice the risk taken on the trade)

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• 1/3 remaining position to be trailed by placing a trailing stop under each


MAJOR pivot high formed. (A major pivot high is a pivot that has 2 lower
highs on both sides of it)

TRADING RULES

I will now cover some very important rules and scenarios that need to be
addressed for this strategy:

BREAK OF ENTRY LINE

Sometimes you will see a W or M formation where the aggressive entry has
already exceeded the conservative entry line by price even before you can trade it.

This is generally down to a large move within the last leg of the formation. In this
scenario, you simply can enter when the High of the last bar (for long trades) or
Low of the last bar (for short trades) is broken on the next bar.

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TREND CONSIDERATION WHEN SETUP OCCURS

It is very important that we understand when a setup is low risk or when it is high
risk. Obviously the higher risk trades have less edge than normal in your favour,
but that doesn’t mean that you cannot make money from them as the edge in
your favour at these points is still good enough even if it is less than normal. BUT
what I recommend is that you execute your trades in a slightly different way when
you have higher risk trades occurring.

So what determines what is high risk or low risk? …….The Trend!

Now this formation is for both continuation of trend and reversal of trend, but
there are some scenarios that make the trade lower risk than others.

TRADES AGREEING WITH TREND

The easiest trades to take here are the trades that are in an up trending or down
trending chart with price action nicely trending in one direction. These trade
formations agreeing with the trend are no brainers:

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COUNTER TREND TRADES

We then will get W and M formations as a trend reversal. Here you need to be a
little more cautious. What I recommend here is that you use the neckline (the
conservative entry) to enter these trades, regardless of whether you ever use this
entry or not in your trade plan.

In these scenarios where you are going against the major trend, use the neckline
for entry and pay close attention to the distance from entry to stop. The larger this
distance, the riskier your trade.

Again it is fine to take, but just bare in mind the additional risk you are taking on. A
lot of major trades have come from counter trend moves so it is still highly
profitable to trade.

Note: This scenario is for when we are trading against the general trend
(determined by direction of price action)

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TRADE EXAMPLES

EXAMPLE TRADE:

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EXAMPLE TRADE:

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EXAMPLE TRADE:

PS3 STRATEGY 2 ROUNDUP

The W and M Pivot Power Play Formation Strategy is very powerful and you will
see this when you put it to work for you. Some of my trading buddies cannot
believe how much profit I make with this strategy, and I love it because it is so
simple yet so profitable.

What is great about this strategy is the low risk setups that bring high risk reward.
This is the best way to trade a market, as you only need to be right a fraction of
the time to make money with this because of the risk reward, but on top this has a
high win to loss ratio which is a major bonus for us.

In developing this system, I wanted to create a strategy that was very simple to
follow yet gave high risk reward results, which has definitely been achieved here.

I’m confident that if you take the time to trade this system, then you will be able
to generate a ton of profit from this strategy.

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FINAL THOUGHTS

What you have here is my premium strategy that has made me a lot of money in
the market, and what’s best is that they are timeless strategies that will continue
to work because they are not based on fly by night ideas but on a premise that has
and will always stand true.

We are always mindful of the trend and are simply riding the waves as the trend
progresses. Even when we counter-trend trade, we understand the risk of doing so
and counter-balance that risk by putting mechanisms in place that always put that
edge in our favor.

You need to think of this like a business and take this seriously. I am not writing
this book for people who just want to dabble in the market. I have written this for
those who truly want to take their trading to a professional level and want to
trade for a living. I am not saying that you have to quit your job if you have one,
but in that case I would recommend setting a goal to have your trading profits
surpass your salary and eventually become your sole income.

The freedom that trading gives you is boundless, and it is this “perk” that truly
takes the meaning of having a special life to a whole other level…not just because
of how much money we make, but also because the level of time, freedom and
quality of life never decreases against a growing income…which is unlike anything
out there.

You can mix and match the trade management rules if you wish to, if you feel
some of my methods are better suited to you, but you must stick to the rules and
always stay consistent in your approach, otherwise your trading will lean towards
“random” trading, which always ends up in disaster.

Treat this like a proper business and always look at your numbers. Trading is all
about edges, so make sure you are always concentrating on playing out your edge
overall and not concentrating on individual outcomes.

Remember that there is a random distribution between wins and losses for any
given set of variables that define an edge...and all we have to do here is let your
edge play out, and overall the profit will always roll in! So statistically speaking,
you WILL have negative weeks, it would be stupid to not expect that, but all you
have to remember is that the edge is in your favor, so just play out your edge, and
carry on trading...the profit will always lean over to your side!

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Be The Casino, Not The Player!

Now let me be clear, I am not saying that trading is gambling… far from it… but the
analogy of a casino is a good way to drive home the idea of playing out your edge:

So we all know that the “house always wins”, well what does that mean exactly?

Well the house always wins because the house always has the edge, so no matter
what happens on individual hands or plays, overall, after lots of hands or plays, the
house will always be up. Yes, the casino may lose some money on individual
hands, where the player makes some profit, but the casino doesn’t care, as all the
casino wants is for the player to carry on playing at the table, because it knows
sooner or later all those chips sitting in front of the player will come back to the
house. Only a TINY edge is needed for the casino business to make a killing!

Similarly we, the traders, act like a casino when we trade the PS3 Power Play
Trading Systems, as the edge is always in our favor. So we may lose trades (just
like the casino loses to the player on a particular hand and has to payout), but as
long as we keep pulling the trigger and placing the trades whenever they
occur, the edge is always in OUR favor, so overall, over the course of many trades,
the profit will be in our account, and not in the player’s (the market’s). You see, it
doesn’t matter how many losing trades come about, it is irrelevant because we
know the edge is in our favor and that is all we need to know to carry on trading.

This is the whole “psychology of trading” summed up. It is simply having


confidence in the edge of your system, enough to consistently pull the trigger on
every trade that occurs whenever you are trading.

So negative trades or periods are just a part of the game, and they WILL come!
Any trader out there telling you his system makes 100% winning trades is a scam
artist. Run!

Many of the multibillion dollar hedge funds have a win rate of only 30 % …that’s
all!!! But with risk reward in place and them riding their winners, these winners
more than compensate for the losers and that is how they make money. The
winners are much much bigger than the losers!

You will suffer some losses and you will have some bad trading days. This is
perfectly normal in a winner’s forex trading business. But the important thing is
that you stick to your rules and carry out each trade without any emotion. If you
can stick to the rules then success is the only outcome.

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Losses are inevitable, but if you carry out these PS3 strategies as described in this
book, your wins will easily pay for your losses and you will have a tremendously
successful trading business.

I want to thank you so much for reading, and wish you all the trading success you
can dream of…

Kumar Kaushal

I hope you enjoyed my PS3 Power Play Secret Strategies and will take action on
them. There truly is no reason why you won’t have a rapidly growing trading
account now.

If you are interested, you can take a look at my latest research and development
in my trading:

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It literally took me years to research and refine this method! When I first
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