GBPCAD – 4H Reversal Setup Breakdown Using the VMS Strategy

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Sharing this strictly for education and transparency, not celebration. GBPCAD gave us a very clean short setup on Friday, and by the end of the day that trade reached its target. Here is the breakdown so traders can study the structure.

1. Market Context – Strong Impulse Up Into a Reversal Zone

Before the reversal, GBPCAD made a strong impulsive move upward, pushing into a level that has produced reactions in the past. The speed and strength of that push was the first clue that we might be nearing exhaustion.

This doesn’t mean “sell.”
It simply means watch closely.

2. The Shooting Star Reversal Candle

Right after the impulsive move, price printed a well-formed shooting star.
Two things made this candle significant:

It formed immediately after a strong push up

The wick showed clear rejection from higher prices

This combination elevated it from interesting to structurally meaningful.

3. VMS Analysis – Three Timeframes, Same Story
Volume

Volume was solid on all three timeframes we monitor (4H, 1H, 15M).
Consistent volume like this during a reversal attempt gives the move credibility.
It wasn’t a weak top. Buyers stepped in—and were rejected.

Momentum

Momentum reached 92, extremely strong, right before it hooked downward.

Not divergent in this case, but the magnitude of the momentum reading created the conditions for a clean rollover.
When momentum peaks that high, a hook down often carries real weight.

Structure Completion

The engulfing pattern and hook provided the final confirmation we needed.
Structure, volume, and momentum were now aligned, not scattered.

That’s when probability tilts.

4. Execution – Following the Rules, Not Predictions

Once VMS aligned, we entered the short position.

What happened next was simply market behavior, not trader brilliance:

➡️ Price dropped straight down with no hesitation
This is the kind of follow-through that tells you the read was correct, the structure was complete, and the reversal was legitimate.

⭐ 5. Why I’m Sharing This

Not to brag.
Not to flex.
Not to say “look at this win.”

I post wins and losses because transparency and documentation make us all better traders.

This trade is being shared because it is a clean example of:

A high-impulse move into exhaustion

A textbook reversal candle

Strong volume confirmation

High momentum rollover

VMS alignment across all charts

A disciplined, rule-based entry

If this breakdown helps even one trader improve their timing or chart awareness, this post has done its job.

Prepared, not predictive.
Aligned Execution.

Not financial advice — always follow your own rules and risk management.

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