AI Summary
This video presents a trading strategy for the Pocket Option platform, combining four indicators—Escalator, Moving Average (EMA 100), Parabolic SAR, and Aroon—to identify high-probability entry points. The trader emphasizes the importance of confluence across indicators and patience in waiting for all signals to align before entering a trade.
Chapters
The video covers four indicators: Escalator, Moving Average (EMA 100), Parabolic SAR, and Aroon, with settings and color customizations.
For a sell trade, price must be below the moving average, below Parabolic SAR, Aroon pointing down, and Escalator showing red bars indicating momentum.
For a buy trade, price must be above the moving average, above Parabolic SAR, Aroon crossing up, and Escalator showing green bars.
The trader identifies a rally-base-rally pattern forming multiple times, adding confluence to the trade direction.
The trader stresses not taking a trade unless all indicators align, and emphasizes patience as crucial for profitability.
A sell trade is taken after price breaks below the moving average with a strong candle, Aroon pointing down, and Parabolic SAR above price.
The strategy relies on combining four indicators to confirm trade direction, with the moving average and Parabolic SAR as primary signals. Consistent application of this confluence-based approach, along with patience, is key to achieving a high win rate.
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Mentioned in this Video
Tutorial Checklist
Study Flashcards (5)
What are the four indicators used in this strategy?
easy
Click to reveal answer
What are the four indicators used in this strategy?
Escalator, Moving Average (EMA 100), Parabolic SAR, and Aroon.
00:03
What is the primary signal for trade direction according to the trader?
medium
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What is the primary signal for trade direction according to the trader?
Crossing the 100-period moving average and the position relative to Parabolic SAR.
07:23
What does the Escalator indicator show?
medium
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What does the Escalator indicator show?
Momentum in the market, with red bars indicating selling momentum and green bars indicating buying momentum.
07:38
What pattern does the trader identify as adding confluence?
hard
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What pattern does the trader identify as adding confluence?
Rally-base-rally pattern.
05:57
What is the trader's rule about taking a trade?
easy
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What is the trader's rule about taking a trade?
Do not take a trade unless all indicators align; if one reason is not aligned, skip the trade.
06:39
💡 Key Takeaways
Confluence of Indicators
Emphasizes that all indicators must point in the same direction for a high-probability trade.
02:14Consistency Over Outcome
Stresses that doing the right thing consistently leads to profitability, regardless of individual trade wins or losses.
04:20Rally Base Rally Pattern
Identifies a specific chart pattern that adds extra confirmation to the trade setup.
05:57Patience is Crucial
Highlights the importance of waiting for all conditions to be met before entering a trade.
06:39Full Transcript
[00:03] four indicators? In this video, I'm going to show you the cons and pros of this strategy. Make sure you watch the entire video. There will be multiple pro tips for you to enhance your win rate. Whether you are experienced trader or
[00:17] beginner for the first indicator, I'm going to choose escalator. [Music] Okay. The settings is going to be for the top here.
[00:31] Okay. And then I'm going to And then I'm going to change the SMA period also.
[00:47] white. I'm going to keep the red as the same. For the second indicator, I'm going to use moving average. The settings for moving average
[01:01] is 100. I'm going to use EMA I'm going to use EMA plus I'm going to thicken the lines. Okay. And I'm going to change the color. Let me use two pixel instead. Yeah,
[01:15] that's better. Beautiful. For the third indicator, indicator, it's going to be parabolic S.
[01:27] [Music] For the color, I'm going to choose this. For the color, I'm going to choose this. Take the lines and save. For the fourth and final indicator, it's going to be a rune
[01:42] indicator right there. Beautiful. For the settings, the settings, it's going to be 10. [Music] I'm going to keep the top color the
[01:55] same. I'm going to change the bottom color. This is the settings for the indicator. Let's find some beautiful trades today. Let's find some beautiful trades today. [Music]
[02:14] Based on everything I'm seeing here, it crossed a very long time, meaning the the sellers were strong right here. And then I saw that it was below the moving then I saw that it was below the moving average also the power. Okay, when I see
[02:29] all of these settings indicating the same direction, guys, I know that this same direction, guys, I know that this trade is very short. Okay. So, let's wait for this to close. See what's going to happen here.
[02:44] Okay. So, my Okay. So, I'm going to take this one, guys. And the reason why I took this, I saw that the price is below the moving average. We are also below the parabolic S, which is my favorite parabolic. And I saw that the Aroon
[02:59] parabolic. And I saw that the Aroon indicator is pointing downwards also. Okay, as you can see right here, guys. And this escalator candle, it's pushing down even further. It's showing me some momentum is going on right here because
[03:14] if you pay attention very clearly, there's a lot of red bars here. So, common sense tells you that something is going on here. The sellers are in control. So, you have to you have to pay attention to what the indicators are
[03:29] trying to tell you. And based on what it tells you, you combine it with other indicators to give you effective accuracy. Okay? And also you need to accuracy. Okay? And also you need to understand um the trend. But
[03:50] can see, we have a signal from our indicator right here. And also this indicator, right? You see that it crosses the main thing we need to be above our line, our moving average line if we're
[04:05] going to take a buy trade, right? And we need to be below if we're going to take a sell trade. As you see right here, guys, we are above when we took the trade. So that means we are doing the right thing. If we lose this trade,
[04:20] that's it. Once you're doing the right thing consistently, guys, that's how you become profitable. Okay? So, once I'm doing the right thing, I'm not worried about my trade. I just keep trading
[04:33] regardless if it's a win or a lose. All right. right above my line, and that's looking very promising.
[04:47] So, let's I'm going to take trade here regardless because I see that the price um created a engulfing candle right here and it continues to move in the upper
[05:00] direction and we freshly crossed the line. So, this means the sellers are not like oversold or anything. You see what I'm saying? Like they are literally I'm saying? Like they are literally fresh in the area and they are showing
[05:14] strength. And when they are fresh, it means that they are not exhausted, right? Buyers are not exhausted. So this means buyers can potentially continue means buyers can potentially continue going higher. And if you combine rally
[05:27] based rally with this, you can see right here clearly and I'm adding everything I know guys, the thing about me guys, why my win rate is very high because I know a lot of stuff and I combine everything. Okay? I combine everything I know when
[05:43] I'm trading so I can have the best win rate.
[05:57] based on um experience. I see the rally base rally. I see the rally base rally formed about 1 2 3 4 five times. So this is super
[06:09] 1 2 3 4 five times. So this is super strong. Plus the indicator right here has crossed. Okay. And we have a downward candle going down. I'm not paying attention to this candle because it has a gap right here. So this means
[06:22] it pretty weak in some to certain degrees, right? So I'm not worried about that and we are below the line and we are below parabolic S. Once I combine all these reasons guys, I then take my trade. If one of these reason is not
[06:39] trade. If one of these reason is not align I do not take trade guys and this is very crucial. [Music] [Music] You have to be patient in the market
[06:56] taking this guys. I'm going very heavy right here. Okay. As you guys can see right here, the Aroon has been crossed and the the Aroon has been crossed and the accelerator escalator is giving me a up
[07:11] bar. But the accelerator escalator is not one of the main indication right here guys. The main indication, the main indication here
[07:23] is when we cross the moving average, right? The 100 period moving average and the parabolic SCR is below the candle or above the candle depending on the direction we are trying to go in. Right? Those are the things I pay attention to
[07:38] Those are the things I pay attention to mostly. and the Aroon the escalator accelerator escalator it just shows me the momentum in the market which I need to know because I need to know how strong the price is going in one
[07:52] direction okay so let's wait for this to close
[08:05] right here we have cross and the aron okay pointing down. Plus, we saw a red bar right here on the accelerator, escalator, accelerator, escalator, whatever you want to do. And then we broke the moving average
[08:21] coming down with a strong candle, guys. You see how big this candle is, guys? This shows us that the movement is very strong also. See what I'm saying? But this is common sense, too, you know, like if you really think about it. And
[08:34] we are below the the parabolic s which is I don't know parabolic s is just my is I don't know parabolic s is just my favorite you know and um yeah so I'm going to wait for this trade to close guys. This trade looks very promising
[08:49] and the market looks very nice. We broke a range so the price will try to go down. Remember guys I combine everything I know when I'm trading. That's how I trade personally. Beautiful.
[09:03] So, this will be the end of my session, guys. If you're interested in the mentorship, you can use the link in the description to apply for your mentorship. And I will see you guys in the next video. Peace out.