The 00 Level Strategy: Breakout vs Reversal
60sClearly explains a simple yet powerful trading rule with two distinct scenarios, appealing to beginners and experienced traders alike.
▶ Play Clip"Exactly what it claims: a simple 1-minute strategy, clearly explained with live examples, but the promised 'effectiveness' is not guaranteed, keeping it grounded."
This video presents a simple 1-minute trading strategy for Pocket Option, based purely on price action and psychological round numbers (00 levels). The presenter demonstrates how to configure the chart and explains clear rules for breakout and reversal entries. Live examples illustrate how the strategy works in real market conditions.
The strategy relies on price action and psychological round numbers (00 levels) instead of multiple indicators.
Configure chart to candles, 15-second timeframe, and set trade expiry to 1 minute. Enable horizontal grid to see round numbers.
In uptrends, a close above 00 triggers a buy; a rejection (wick) and close below triggers a sell. Breakout trades follow momentum; reversals capitalize on bounces.
In downtrends, a close below 00 triggers a sell; a bounce and close above triggers a buy. Same logic but inverted.
A live sell breakout trade is shown: a 15-second candle breaks below 00, leading to a profitable sell with 1-minute expiry.
A live reversal buy trade is shown: price fails to stay below 00 and moves back above, triggering a profitable buy.
An example of a failed breakout: price broke below 00 but reversed. The level was a strong support from previous price action, highlighting the need to check for support/resistance.
What time frame should you set on your chart for this strategy?
15 seconds
00:56
What should the trade expiry be set to?
Exactly 1 minute
01:10
Why is the horizontal grid enabled on the chart?
To reveal psychological round number levels (00 levels).
01:10
What triggers a buy trade in an uptrend according to the breakout rule?
If a 15-second candle closes above the 00 line, enter a buy trade on the next candle's open.
01:53
How do you identify a reversal entry in an uptrend?
Wait for a rejection (wick) and close below the 00 line, then enter a sell trade.
02:07
In a downtrend, what confirms a sell breakout entry?
Close below the 00 line signals a sell trade.
02:22
In a downtrend, what action indicates a reversal buy?
If the price bounces and closes above the 00 line, you enter a buy trade.
02:36
What can cause a breakout trade to fail according to the video's lesson?
A false breakout when the level acts as a major support or resistance zone from previous price action.
07:30
Horizontal Grid Setup
Enabling the horizontal grid is a crucial step that reveals the 00 levels, which are the foundation of the strategy.
01:10Breakout Signal Confirmation
A clear breakdown below a round number level, shown by a 15-second candle close, provides a strong sell signal.
03:34Loss as a Learning Tool
The example of a failed breakout emphasizes the importance of checking for support/resistance, a key risk management lesson.
07:30Reversal Logic
The strategy includes both breakout and reversal scenarios, covering two key market behaviors around round numbers.
02:36Price Action and Psychological Levels
The entire strategy relies on price action and psychological round numbers, avoiding complex indicators.
00:15[00:02] Trading Strategies. Today, I am going to explain a straightforward 1-minute strategy for Pocket Option. We will not be using multiple indicators for this method. Instead, we will rely entirely on price action and psychological round
[00:15] numbers to identify clear breakout and reversal opportunities. In this video, I will demonstrate how to configure your chart and explain the specific 000 rule based on market trends. Later, I will execute live trades to show how this
[00:30] strategy functions in real time. Before we begin the setup, please remember that trading involves risk, and past results do not guarantee future performance. Always practice on a demo account first. If you find this content helpful, please
[00:42] channel. Let us begin with the chart setup. To begin, we need to configure the charts. This approach requires precise timing and trend alignment. First, change your chart type to candles and set the time frame to 15 seconds.
[00:56] This allows us to observe smaller price movements, so we can time our 1-minute entries accurately. Second, set your trade expiry time to exactly 1 minute. Finally, open your Pocket Option settings and enable the horizontal grid.
[01:10] they represent psychological round numbers, which are frequently respected by the market. For this strategy, we will focus specifically on price levels that end in a double zero, 00. When the price approaches these 00 levels, the
[01:25] market typically either breaks through the level or reverses from it. The critical factor for this strategy is that you must trade in the direction of the established trend. Here are the standard rules for entry. Scenario one,
[01:38] the bullish trend, uptrend. When the market is moving upward and approaches a 00 line from below, closely observe the 15-second candle. The breakout. Buy trade. If a 15-second candle moves up and closes above the 00 line, the
[01:53] momentum has broken the resistance. Enter a 1-minute buy trade on the open of the following candle. The reversal, sell trade. If the candle touches the 0 0 line, faces rejection, and closes below it while leaving a wick, the
[02:07] resistance level has held. Enter a 1-minute sell trade. Scenario two, the bearish trend, downtrend. When the market is moving downward and approaches a 0 0 line from above, the rules are inverted. The breakout, sell trade. If a
[02:22] 15-second candle moves down and closes below the 0 0 line, the support has been broken. Enter a 1-minute sell trade immediately. The reversal, buy trade. If the candle drops to the 0 0 line, bounces, and
[02:36] held. Enter a 1-minute buy trade. The logic is straightforward. Breakout trades follow the continuing momentum, while reversal trades capitalize on the price bounce. To provide further clarity, I have
[02:50] created a comprehensive PDF guide that explains the setup, candle confirmation rules, and essential guidelines step-by-step. You can download this PDF for free using the link provided in the video description. I recommend reading
[03:03] the framework before applying the strategy. Now, let us move to the charts to examine some live setups and see how this strategy is executed. First, let's look at the entry point of this trade. In this situation, the market had
[03:17] started showing signs of weakness near the top. After that, we can see a strong bearish move forming with several red candles pushing the price downward. Now, 15-second candle clearly breaks below the round number 0 0 level.
[03:34] This break tells us that sellers are gaining control of the market. At that moment, according to our strategy rules, when the candle breaks below the round number level, we take a sell trade with a 1-minute expiry. This is exactly where
[03:47] the sell trade is placed. Now, let's observe of happens after the trade is entered. Immediately after the entry, the market continues to show strong bearish momentum. We can see that the candles keep forming lower highs and
[03:59] lower lows, which confirms that sellers are still dominating the market. Now, let's look at the final outcome of the trade. As the 1-minute expiry below the round number level, and the
[04:11] bearish momentum remains strong. Because of that, the trade closes in profit you another important situation in this strategy, the reversal setup. In the previous example, we saw a breakout trade, but sometimes the market does the
[04:25] opposite. Instead of continuing the breakout, the price rejects the level and reverses direction. And that is exactly what happens in this example. First, let's look at the entry point of this trade. At the beginning, the market
[04:37] is clearly moving downward with multiple red candles showing strong selling pressure. Eventually, the price reaches the round number level ending with double zero. At first, it appears like the market
[04:49] might continue following, but then something important happens. Instead of fails to stay below the round number level and quickly moves back above it. This is a classic false breakout or rejection of the level. When the candle
[05:03] moves back above the round number line, according to our strategy rules, we take a buy trade with a 1-minute expiry. This is the exact moment where the reversal buy trade is placed. Now, let's observe how the trade develops after the entry.
[05:16] After the buy position is placed, the market starts showing bullish reaction that the next candles begin to push upward, showing that buyers are stepping into the market. This confirms that the
[05:28] previous breakdown was not a real breakout, but a false move. False breakouts often trap traders who enter in the wrong direction. When those can move quickly in the opposite direction. And that is exactly the type
[05:41] of move we are trying to capture with this reversal setup. Now, let's look at the final outcome of the trade. As the expiry time approaches, the the price level, showing that buyers are maintaining control. Because of this
[05:55] upward movement, the trade closes successfully before the expiry ends. Now let me show you another example, but this time something important happens. this example is actually a very good learning moment. First, let's look at
[06:09] the entry point of this trade. At this moment, the market was clearly moving downward, forming several strong bearish candles. Then the price approached the round number level ending with double zero. When the candle broke below this
[06:22] According to the breakout rule of this strategy, when a 15-second candle breaks below the round number level, we can consider taking a sell trade with a sell trade was placed following the breakout rule. However, there was one
[06:38] important detail on the chart that I did not notice immediately. Now let's see what happens after entering the trade. Right after the sell entry, instead of continuing downward, the market suddenly shows strong buying pressure. A large
[06:50] bullish candle appears and quickly pushes the price back above the round number level. This tells us that the market has reached a strong support area where buyers are willing to step in. If we look slightly left on the chart, we
[07:03] can actually see that price previously reversed from the same level earlier. That means this level was acting as a strong support zone, not just a simple breakout level. Because of this support reaction, the breakout fails to continue
[07:16] downward. As the expiry time approaches, the price continues to stay above the level and move upward. Because the market rejected the breakdown and bounced from the support zone, the trade closes in a loss. But this example is
[07:30] extremely valuable because it highlights an important lesson. Even when a breakout appears clean, we must always check whether the level is also acting as a major support or or zone from previous price action.
[07:43] So, this is how the round number breakout and reversal strategy works on the 15-second chart with 1-minute expiry. As we saw in the examples, sometimes the breakout continues, sometimes the market reverses, and
[07:55] sometimes the trade does not work, which is completely normal in trading. The key is to understand price behavior around psychological round number levels and always manage risk properly. If you found this video helpful, make sure to
[08:07] channel for more educational trading strategies. Thank you for watching, and I'll see you in the next video on Sam Trading in the next video on Sam Trading Strategies.
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