Explosive Trading Profits Unlocked: The 50 EMA + Stochastic Method They Don’t Want You to Know!

ForexPartners

The 50-day Exponential Moving Average (EMA) is a widely used technical indicator in trading, especially for identifying the overall trend direction of a financial instrument. Unlike the simple moving average, the EMA places greater weight on recent price data, making it more responsive to current market conditions.   Trade On Pocket Option: http://pocketoptioncapital.com  When the price is above the 50 EMA, it generally signals a bullish trend, while a price below the 50 EMA indicates a bearish trend. Traders often use this indicator as a dynamic support or resistance level, helping to confirm the direction of trades and filter out noise from shorter-term market fluctuations.  The Stochastic Oscillator, on the other hand, is a momentum indicator that compares a particular closing price of an asset to a range of its prices over a specified period. It generates values between 0 and 100 and is composed of two lines: %K and %D. When these lines cross above 80, the asset is considered overbought; below 20, it is considered oversold. These zones help traders identify potential reversal points. However, stochastic signals are more reliable when used in conjunction with trend-following tools, as momentum alone can be misleading during strong trends.  Combining the 50 EMA with the Stochastic Oscillator provides a balanced trading strategy that incorporates both trend direction and momentum. For instance, a common approach is to look for buy signals when the price is above the 50 EMA and the Stochastic Oscillator is emerging from the oversold zone (crossing upward from below 20). Conversely, sell signals may be considered when the price is below the 50 EMA and the Stochastic crosses down from overbought territory. This confluence of indicators helps traders enter higher-probability trades by aligning with the prevailing trend while timing entries based on shifts in momentum.  We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.  Open Account: http://pocketoptioncapital.com  Risk Disclaimer: Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.  Intraday trading strategies, live day trading, live trading, quotex trading strategy, quotex trading strategy, binary options trading strategy, quotex trading app review, binary options, trading, quotex trading app, nifty prediction, binary trading, binary options trading, binary options trading strategy, day trading live, quotex, quotex strategy, pocket option, pocket option strategy, best binary options brokers, pocketoption strategy 2025, binary trading, binary options

Transcript

00:00in this video i'm going to be showing you an unbelievably simple stochastic moving average

00:05strategy that will allow you to make consistent profits trading binary options no matter if

00:10you're a beginner or an expert trader this strategy is for everyone and if you're looking

00:15for a consistent reliable strategy that's going to make you some good money you've come to the

00:20right place okay so let's get into some of the basics what is the stochastic oscillator well

00:26this indicator helps us identify whether the price of a security is overbought or oversold now how do

00:33we know when the price is overbought or oversold when the two lines of the stochastic oscillator are

00:38above the 80 marker over here the price is considered to be overbought and when the two

00:43lines of the stochastic oscillator are below the 20 marker over here the price is considered to be

00:48oversold using this information the stochastic oscillator can really help us identify trends

00:54and potential reversals and as for the moving average indicator i mean it's pretty self-explanatory

01:00the indicator shows the market's movements over a longer period of time which can really help us

01:05identify different trends in the market so now that you understand the basics of the indicators

01:10that we're going to be using for this strategy we're going to go ahead and add the indicators to

01:15our chart from here you want to head over to the indicators and the first indicator that we're going

01:20to be adding to our chart would be the stochastic oscillator and the second indicator that we would

01:25be adding to the chart would be the moving average once you've added both indicators to your chart it

01:30should look something like this now before we dive straight into the strategy we need to go ahead and

01:36change a couple of things we're going to leave the stochastic oscillator as is but we need to change a

01:40couple of settings for the moving average indicator what you're going to want to do is click on the pencil

01:44over here then we're going to change the period from 10 to 50 and then we're going to change the

01:51moving average from sma to ema once you've done that you can click on save keep in mind that the

01:58indicators that we've added to the chart each play a different role within this strategy we'll use the

02:03stochastic oscillator for potential buy and sell entries and we'll use the moving average to identify

02:09different trends in the market so i'm currently on the one minute time frame and for this strategy

02:14we'll be using the one minute time frame in confluence with the 15 minute time frame at the

02:20moment as you know we are on the one minute time frame so i'm just going to go ahead and switch

02:24over to the 15 minute time frame you can do this by clicking on the time frames icon over here and

02:29switching from the one minute time frame to the 15 minute time frame so we are currently looking at

02:34the cad jpy otc currency pair and you're probably wondering why we've switched over to the 15 minute time

02:40frame for this strategy we're going to be using the 15 minute time frame to identify the

02:44short to medium term trend in the market in this case as you can see cadjpy is clearly in an uptrend

02:50why well the price is creating higher highs and higher lows because cadjpy is in a short to medium

02:56term uptrend we'll be focusing on opening buy positions only once you've identified the short

03:01to medium term trend in the markets we're going to go ahead and switch over back to the one minute

03:05time frame so we are back on the one minute time frame and we now know that the short to medium

03:10term trend on the 15 minute time frame is towards the upside so it's very important that we see

03:15confluence that correlation between the 15 minute and the one minute time frame this is where the

03:21very first confirmation comes into play we obviously know that the price is moving towards the upside on

03:26the 15 minute time frame we need to see that same reflection on the one minute time frame we need

03:32to see that the price is moving well above the 50 ema and in this example that's clearly the case

03:39so that would be the very first confirmation before opening any sort of trade now the second

03:44confirmation we need is provided by the stochastic oscillator let me go ahead and expand the stochastic

03:50oscillator over here because the price is on an uptrend and well above the 50 ema we're obviously

03:56focusing on buy positions only because we're focusing on opening buy positions we need to wait for one

04:01very important confirmation provided by the stochastic oscillator we need to see that both the blue and

04:07orange lines close below the 20 percent marker over here when both the blue and orange lines close

04:12below the 20 percent marker on the stochastic oscillator this essentially means that the price is considered

04:17to be oversold making this a great opportunity to enter a buy position but it's not just about

04:23recklessly entering a buy position we need to wait for a little more clarity here we can see the

04:28stochastic swiftly move to this oversold region over here and all that we needed to wait for was the

04:33blue line to cross above the orange line below the orange 20 percent mark over here which is exactly

04:39what happened now this is the clarity we need once the blue line crosses well above the orange line

04:45this is the exact confirmation we need to open a buy position so we would have opened a buy position on

04:50the close of this candle over here and i think the trade would have played out quite nicely now the exact

04:56same confirmations would apply when opening a sell position so we are currently looking at the gbp jpy

05:02otc currency pair and the first thing we need to do is identify the short to medium term trend in the

05:07market to do this we're going to jump straight over to the 15 minute time frame on the 15 minute

05:12time frame we can clearly see that the price is in a downtrend why well the price is creating lower lows

05:18and lower highs because the price is on a short to medium term downtrend we'll be focusing on opening

05:24sell positions only now that we know the price is on a short to medium term downtrend on the 15 minute

05:29time frame we can go ahead and switch back over to the one minute time frame because we're focusing on

05:34opening sell positions only we obviously know that the price is very much coming towards the downside

05:39on the 15 minute time frame and it's very important that we see that exact same correlation with the

05:44one minute time frame we need to see that the price is very much below the 50 ema and in this example

05:50that is very much the case once you've identified the short to medium term trend in the market we

05:55now need to wait for our second confirmation which is provided by the stochastic oscillator

06:00we need to see that both the blue and orange lines are above the blue 80 marker on the stochastic

06:05oscillator this essentially means that the price is considered to be overbought and this would be a

06:10good time to enter a sell position now keep in mind that just because both the blue and orange lines

06:15cross above the 80 percent marker doesn't mean you should recklessly enter a sell position we need

06:20to wait for the blue line to cross well below the orange line before entering a sell position

06:25in this example that i've picked out over here the blue line crosses well below the orange line over

06:29here making this a great time to enter a sell position i just thought i'd let you guys know if

06:35you're focusing on opening sell positions and you see there's a couple of candles above the 50 ema

06:40it's not the end of the world you just need to ensure that the candles are not well above the 50 ema

06:46the same thing applies when opening buy positions just the opposite if there's a couple of candles

06:51below the 50 ema not the end of the world you just need to ensure that the candles are not well below

06:56the 50 ema okay so let's just recap on that real quick in order to open a buy position we need to see

07:03that the price is in an uptrend on the 15 minute time frame now the second confirmation we need is to

07:08see that the price is well above the 50 ema on the one minute time frame we also need to see that the

07:14price is oversold on the stochastic oscillator and once the blue line crosses above the orange line in

07:20the oversold zone we know this is a good time to buy when it comes to opening a sell position we need

07:26to see that the price is in a downtrend on the 15 minute time frame now the second confirmation we

07:32need is to see that the price is well below the 50 ema on the one minute time frame we also need to

07:37see that the price is overbought on the stochastic oscillator and once the blue line crosses below

07:43the orange line in the overbought zone we know this is a good time to sell so now that you guys

07:48understand the basics of this strategy the ins and outs of how this strategy works when it comes to

07:54physically opening a trade you'll mainly be on the one minute time frame opening five minute positions

08:00if you guys are still unsure of what's going on what i'm going to do is get into a couple of live

08:06trades to show you guys exactly how i would trade this strategy allowing you to get a better idea

08:11on how to trade this strategy effectively so please sit back relax and enjoy

08:27and be careful about how to trade it even though it's gonna be a good time to return to the

08:31world to trade this strategy it's going to be a book called a real life to trade it into a

08:32way that you can use it and that you can use it and start making this strategy for it to have a really

08:38lot of different categories and make sure that you just need it to be a good time to

08:42focus on the panel and get a good time to do it go out and make sure that you don't

11:46We can trade absolutely anything from stocks to commodities to indices to currency pairs,

11:52even crypto.

11:53If you're consistent and you stick to the rules of the strategy, you could easily make $100 per day.

11:59Yes, you heard that correctly.

12:00The strategy is that damn good.

12:03But I'd highly recommend going to check this strategy out.

12:06No matter if you're a beginner or an expert trader, this strategy is seriously impressive.

12:11But I hope you guys learned something new today.

12:12And if you did, go ahead and smash a like on the video and subscribe to the channel if you are new.

12:17And I'll see you in the next one.

Category

Transcript

Recommended