Rare Trading Method Setup
45sViewers are intrigued by rare, effective trading strategies, and the setup explanation is visual and step-by-step.
▶ Play ClipAI Summary
This video demonstrates a rare trading strategy for Pocket Option that combines three indicators—Bollinger Bands, RSI, and Schaff Trend Cycle—to identify high-probability entry points on 1-minute charts. The method requires all three indicators to align before opening a position, aiming for consistent profits in short-term trades.
Chapters
[00:00]
Strategy Overview
Introduces a rare and effective trading method, often used as an auxiliary signal, that combines three indicators for better results.
[00:15]
Indicator Setup: Bollinger Bands
Sets Bollinger Bands with periods 20 and 2, thickens lines, and changes colors for clarity.
[00:45]
Indicator Setup: RSI
Configures RSI with period 8, white color, and overbought/oversold levels at 80 and 20.
[01:24]
Indicator Setup: Schaff Trend Cycle
Sets Schaff Trend Cycle periods to 30, 55, 8, 4, and 3, with pink main color and thicker lines.
[01:48]
Chart Settings
Uses 1-minute Japanese candlesticks and 1-minute trading time, then selects the best currency pairs.
[02:22]
Signal 1: Bollinger Bands
For a downward position, the green candle must touch and cross the green line of Bollinger Bands.
[03:30]
Signal 2: RSI
For a downward position, the RSI white line must touch or approach its green line; for upward, it should touch the red line.
[04:38]
Signal 3: Schaff Trend Cycle
Confirmation requires the pink line to be above its blue line for downward positions, indicating a cross and upward movement.
[05:55]
Importance of Persistence
The longer the pink line maintains its state, the better the results. The method requires patience as signals are rare.
[06:27]
All Three Indicators Required
Positions are only opened when all three indicators align; missing any one invalidates the method.
[06:57]
Trend Independence
The method is not trend-specific; it relies on specific candle patterns, allowing trades in both uptrends and downtrends.
The strategy emphasizes patience and strict adherence to the triple-indicator confirmation, yielding high win rates (4 out of 4 in the demo). It is designed for traders who can wait for rare, high-quality setups.
Mentioned in this Video
Tutorial Checklist
6
03:30
Confirm RSI white line touches or approaches its green line (for downward) or red line (for upward).
Study Flashcards (9)
What are the three indicators used in this strategy?
easy
Click to reveal answer
What are the three indicators used in this strategy?
easy
Click to reveal answer
Bollinger Bands, RSI, and Schaff Trend Cycle.
00:15
What are the settings for Bollinger Bands?
easy
Click to reveal answer
What are the settings for Bollinger Bands?
easy
Click to reveal answer
Periods 20 and 2.
00:15
What is the RSI period and overbought/oversold levels?
easy
Click to reveal answer
What is the RSI period and overbought/oversold levels?
easy
Click to reveal answer
Period 8, with levels at 80 and 20.
00:45
What are the Schaff Trend Cycle periods?
medium
Click to reveal answer
What are the Schaff Trend Cycle periods?
medium
Click to reveal answer
30, 55, 8, 4, and 3.
01:24
What signal does Bollinger Bands give for a downward trade?
medium
Click to reveal answer
What signal does Bollinger Bands give for a downward trade?
medium
Click to reveal answer
The green candle must touch and cross the green line.
02:22
What signal does RSI give for a downward trade?
medium
Click to reveal answer
What signal does RSI give for a downward trade?
medium
Click to reveal answer
The white line must touch or approach its green line.
03:30
What signal does Schaff Trend Cycle give for a downward trade?
medium
Click to reveal answer
What signal does Schaff Trend Cycle give for a downward trade?
medium
Click to reveal answer
The pink line must be above its blue line.
04:38
Why must all three indicators align?
easy
Click to reveal answer
Why must all three indicators align?
easy
Click to reveal answer
If any one is missing, the method will not work.
06:27
Is this method trend-specific?
medium
Click to reveal answer
Is this method trend-specific?
medium
Click to reveal answer
No, it works in both uptrends and downtrends based on candle patterns.
06:57
💡 Key Takeaways
🔧
Bollinger Bands Signal
Defines the precise candle-line interaction required for entry.
02:22
🔧
RSI Confirmation
Adds a second layer of confirmation to reduce false signals.
03:30
🔧
Schaff Trend Cycle Confirmation
The third indicator ensures trend alignment, increasing trade reliability.
04:38
⚖️
All Three Indicators Required
Emphasizes the non-negotiable rule of the strategy, preventing impulsive trades.
06:27
💡
Trend Independence
Highlights the method's flexibility, making it applicable in any market condition.
06:57Full Transcript
[00:00] Hello friends. Today I want to show you a method that is not very common. I would even say that it's rare to capture good moments, but I think that the results are much more effective than
[00:15] other similar methods. In some cases, I use this method as an auxiliary signal. let's start by setting up the first indicator which is called Ballinger
[00:30] bands. I have to change the periods to 20 and two. let's also change
[00:45] some colors. Thicken the lines and save. The second indicator is the well-known RSI. Let's reduce the period to eight. The main color is white.
[01:05] Also, let's change the percentage to 80. Here the percentage is 20. And save. The last indicator in the method is the shaft trend cycle.
[01:24] I set the periods to 30, 55, 8, four, and three. also, let's change the main color to pink and make other lines thicker. And that's all.
[01:48] Then I have to set up one minute Japanese candles and trading time is also 1 minute. After setting up the three different indicators and one-minute candles, I select the best currency
[02:05] pairs to start looking for good moments and discuss the method in depth. I think I got a very good moment, and of course, I open the position in the downward direction. one
[02:22] of the main points of the method is that the first thing I look at is the green line above the Ballinger bands. If I open a position in the downward direction, in this case,
[02:38] the Ballinger band signal is expressed in the fact that the green candle should touch its green line and cross it. this is the first signal when I have a signal to open a position
[02:54] in the downward direction. Of course, I also look at the other two indicators which I will try to talk about in the next trades. and great! the first convincing profit and I think that the
[03:09] second red candle will will be made as well. So, I wait for the second candle to open and then I open the position again in the downward direction. as for the second indicator that I follow is
[03:30] the RSI. Its white line must definitely touch or be close to its own green line in this case.
[03:42] approaching or touching the green line is necessary if I open a position in the downward direction. If I open and position in the upward direction, the white line of the RSI should do the same with its own red line. Of course, both Ballinger bands and the RSI
[04:01] should give me a signal at the same time and everything is going so so well on the market. Great. It's so good to have both trades in profit. Friends,
[04:23] this is a very good moment. As you can see, all three indicators simultaneously give me a signal to open a position in the downward direction. here I will explain the third indicator which is
[04:38] called shaft trend cycle. when I have signals from the ballinger bands and RSI indicators these signals must be confirmed by the pink line of the shaft trend cycle, which in this
[04:54] case when I open a position in the down direction, must be above its own blue line. This is its own blue line must have crossed the pink line and moved upwards. As you can see, everything
[05:11] is going so perfectly on the market and I won again and again and it's really cool. I think
[05:23] it's a very good moment again and I'm opening a position in the downward direction again. as you can see, the green line of the Ballinger bands has been crossed by the green candle and
[05:36] at this time the white line of the RSI is approaching its own green line. Of course, the pink line of the shaft trend cycle is also moving above its own blue line which confirms that all three indicators are giving me a signal in the downward direction.
[05:55] And I think it's also worth considering the fact that the longer the pink line of the shaft trend cycle maintains this state, the better the results I get. And let's see how things
[06:10] develop. At this point, everything is well. It's so cool. I made four successful trades out of four and that's really great results. I want to tell you again that this method is
[06:27] not often and you need to wait, like you will need a lot of time but it's really worth. I don't open a position until I receive a signal from all three indicators because in this method
[06:40] all three indicators play a a key role and if any one of them is turned off the method will not work. I also want to tell you that this method is not designed for specific trend and I can
[06:57] open a position in downtrend during an uptrend. because here the calculation is made on specific candles and not on specific trends. I wish you successful trading days guys. If you
[07:13] have any questions, you can just write down in comments. we will meet in the next video.
