Strong Signal Explained
45sReveals the exact moment a high-probability trade signal aligns, making viewers eager to learn the criteria.
▶ Play ClipAI Summary
This video presents a trading strategy for Pocket Option that combines a stochastic oscillator, three moving averages, and Heikin-Ashi candles on a 1-minute timeframe. The method relies on specific crossover signals and trend confirmations to identify entry points. The trader demonstrates the setup and shows three consecutive winning trades.
Chapters
[00:03]
Overview of the Method
The trader introduces a classic method using familiar indicators: stochastic oscillator and moving averages. The key is correct position timing using indicator crossovers.
[00:16]
Setting Up Stochastic Oscillator
Set stochastic oscillator with period 5, 1, 1. Colors: green and red.
[00:47]
Setting Up Moving Averages
First moving average: period 4. Second moving average: period 50 (red). Third moving average: period 200 (white). All set to simple MA.
[01:32]
Heikin-Ashi and Timeframe
Enable Heikin-Ashi candles and set trading timeframe to 1 minute.
[02:18]
Entry Signal: White MA Crossover
A strong signal occurs when the white MA (200) crosses the red or green candle. It confirms direction but is auxiliary; the main signal is the red/green MA crossover.
[03:03]
First Successful Trade
The trader opens a short position after white MA crosses red candle with downward direction from red/green MA crossover. The trade wins.
[03:33]
Direction Requirement for MAs
After the red and green MAs cross, they must continue in the same direction (down for short). If they flatten, the signal is invalid.
[04:17]
Stochastic Confirmation
The stochastic white line must be in an uptrend (crossed green line above) for long, or downtrend (crossed red line below) for short. This must coincide with MA crossover.
[05:13]
Stochastic Trend Rule
For the stochastic to be considered uptrend, the white line must cross above its own green line; for downtrend, it must cross below its own red line.
The method requires simultaneous confirmation from MA crossover direction and stochastic trend. When both align, the probability of a winning trade is high. The trader emphasizes patience and discipline to avoid false signals.
Mentioned in this Video
Tutorial Checklist
Study Flashcards (7)
What periods are used for the stochastic oscillator in this method?
easy
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What periods are used for the stochastic oscillator in this method?
easy
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Period 5, 1, 1.
00:16
What are the periods of the three moving averages?
easy
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What are the periods of the three moving averages?
easy
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First MA period 4, second MA period 50, third MA period 200.
00:47
What candle type and timeframe are used?
easy
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What candle type and timeframe are used?
easy
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Heikin-Ashi candles and 1 minute timeframe.
01:32
What is the role of the white moving average (MA 200)?
medium
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What is the role of the white moving average (MA 200)?
medium
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It acts as an auxiliary indicator to strengthen the signal when it crosses a red or green candle.
02:18
After the red and green MAs cross, what condition must hold for a valid trade?
hard
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After the red and green MAs cross, what condition must hold for a valid trade?
hard
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They must continue moving in the same direction (down for short, up for long). If they flatten, the signal is invalid.
03:33
How is the stochastic oscillator's trend determined for an uptrend?
medium
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How is the stochastic oscillator's trend determined for an uptrend?
medium
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The white line must cross above its own green line.
05:13
What must happen for a short entry signal?
hard
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What must happen for a short entry signal?
hard
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Red and green MAs cross downward, white MA crosses a red candle, and stochastic white line crosses below its red line.
04:17
💡 Key Takeaways
🔧
White MA as Auxiliary
Clarifies that the white MA is not the primary signal but adds confidence when it crosses candles.
02:18
⚖️
Direction Continuity Requirement
Emphasizes that after MA crossover, the lines must keep moving in the signal direction—a common mistake traders make.
03:33
💡
Stochastic and MA Alignment
Stresses the necessity of both MA crossover direction and stochastic trend aligning simultaneously for a valid trade.
04:58Full Transcript
[00:03] show you one of the old methods that still works very well for me. In the method, I use indicators that are familiar to everyone. The main thing is
[00:16] to take the right positions at the right time and the method copes perfectly with time and the method copes perfectly with any market complexity. setting up the stochastic oscillator, which is a well-known indicator. Let's
[00:32] set the period to 511. green, and red.
[00:47] And save. The next indicator is the moving average. moving average. Let's set the period to four.
[01:02] and save. I set the second moving average and this time average and this time I have to increase the period to 50. I have to increase the period to 50. Let's set MA here, change the color to
[01:15] Let's set MA here, change the color to red, and save. And I choose the moving average again and increase the period to 200.
[01:32] Here too, I set MA. Uh let's choose the color white and save. Then we have to set Heikin-Ashi candles candles and transition time to 1 minute.
[01:46] And also, we have to set the trading time to 1 minute. >> Uh the last step before starting trading is, of course, choosing the right currency pair so that the method gives me the best results. And as you already
[02:02] pairs uh that are about 70%. I think everything uh is set. So, let me find some good moments and get back to you. Friends, I think this particular
[02:18] situation is a strong signal for this method and I will tell you why right now. Uh first of all, I use the white moving average as an auxiliary indicator to make the signal stronger. If it crosses the red and green candle
[02:34] and at this time other indicators also give me a signal, this is the best moment for the method to open a position in a specific direction. It's not necessary for the white moving average to cross its own red and green lines at
[02:49] the same time. The main thing is that it crosses a red or in this case a green candle and that is all the function of the white moving average. I think
[03:03] everything is going in a perfect way on the market and of course, great. the market and of course, great. I love to have the first win. Again, it's a very good moment to open a position in the downward direction. As
[03:20] you can see here too, the white line of the moving average crosses the red candle. Here I primarily look for the green and red lines of the moving average, which must necessarily cross each other and in this case, the
[03:33] direction must be down. As you can see on the platform now, if after the crossing, the red and green lines of the moving average don't have a downward moving average don't have a downward direction, in this case, I simply do not
[03:48] open the position because this is a very important factor that the red and green lines of the moving average must have a downward direction. >> [sighs and gasps] >> situation is a little bit risky, but
[04:03] perfect way. And so cool. Another successful trading. I also found a very good moment where the red and green lines of the moving
[04:17] average intersect each other and the white line also confirms that the signal is strong, but the signal of the moving average lines would have no meaning if the white line of the stochastic oscillator was not in
[04:31] an upward trend. As you see on the platform upward trend. As you see on the platform now, in short, for this method to work effectively, it is equally important that the red and green lines of the
[04:45] moving average intersect and the trend of the white uh line of the stochastic oscillator in a specific direction specific direction uh occur simultaneously in combination.
[04:58] This is very very important to act together and everything is together and everything is perfect. Great. I have recorded three successful trade out of three. In this particular
[05:13] situation, I think that uh the candles will rise higher, but I want to end the trade here and discuss one more factor that the stochastic oscillator indicator because I didn't uh have a time to fully discuss it. In this
[05:29] particular method, in order for the white line of the stochastic oscillator white line of the stochastic oscillator to be considered in an uptrend, it must cross its own green candle above and in order for it to be considered in a
[05:43] downtrend, it must cross its own red line below. I specified uh this because in some methods, moments um uh near the upper green line also means
[05:55] upward movement, but this is not the case here. They must cross each other. That's all I wanted to say. I wish you successful trading days and see you in successful trading days and see you in the next video. Thank you so so much.