In trading, the use of moving averages is a common technique to identify market trends and potential entry or exit points. A 4-period Simple Moving Average (SMA) and an 8-period SMA are often paired together for short-term trend analysis.
Open Account: http://pocketoptioncapital.com
The 4 SMA reacts more quickly to price changes, while the 8 SMA provides a smoother, slightly delayed signal. When the 4 SMA crosses above the 8 SMA, it can be interpreted as a bullish signal, suggesting upward momentum. Conversely, when the 4 SMA crosses below the 8 SMA, it may indicate a bearish trend.
Fractals, introduced by Bill Williams, are another technical tool used to identify potential reversals in the market. A fractal forms when there is a series of at least five bars where the highest high (or lowest low) is preceded and followed by two lower highs (or higher lows). These patterns help pinpoint significant support or resistance levels. Traders often look for fractals in conjunction with moving averages to validate trade setups. For example, a bullish fractal appearing above both the 4 SMA and 8 SMA can strengthen a long trade signal, especially if confirmed by an upward crossover.
Combining the 4 SMA, 8 SMA, and fractals can enhance a trading strategy by providing layered confirmation. A typical approach might involve entering a long position when the 4 SMA crosses above the 8 SMA and a bullish fractal forms above both lines, indicating momentum and support. Stop-loss levels can be placed just below the most recent bearish fractal or moving average support. This combination allows traders to capitalize on short-term trends while reducing the likelihood of false signals through multiple confirmation layers.
Open Account: http://pocketoptioncapital.com
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.
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.
Open Account: http://pocketoptioncapital.com
The 4 SMA reacts more quickly to price changes, while the 8 SMA provides a smoother, slightly delayed signal. When the 4 SMA crosses above the 8 SMA, it can be interpreted as a bullish signal, suggesting upward momentum. Conversely, when the 4 SMA crosses below the 8 SMA, it may indicate a bearish trend.
Fractals, introduced by Bill Williams, are another technical tool used to identify potential reversals in the market. A fractal forms when there is a series of at least five bars where the highest high (or lowest low) is preceded and followed by two lower highs (or higher lows). These patterns help pinpoint significant support or resistance levels. Traders often look for fractals in conjunction with moving averages to validate trade setups. For example, a bullish fractal appearing above both the 4 SMA and 8 SMA can strengthen a long trade signal, especially if confirmed by an upward crossover.
Combining the 4 SMA, 8 SMA, and fractals can enhance a trading strategy by providing layered confirmation. A typical approach might involve entering a long position when the 4 SMA crosses above the 8 SMA and a bullish fractal forms above both lines, indicating momentum and support. Stop-loss levels can be placed just below the most recent bearish fractal or moving average support. This combination allows traders to capitalize on short-term trends while reducing the likelihood of false signals through multiple confirmation layers.
Open Account: http://pocketoptioncapital.com
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.
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.
Category
📚
LearningTranscript
00:00Hello. Today I will tell you how I was able to earn more than $10,000 using this simple and reliable strategy.
00:07I am trading today on a real account. Let's start with the settings.
00:13We select a candlestick chart type and a time of 15 seconds.
00:19Expiration time is 1 minute.
00:25We connect one fractal indicator and two moving average indicators.
00:31For fractal we set the period to 3.
00:36The first moving average has a period of 4 and the color is blue by 2 pixels.
00:44The second moving average has a period of 8 and the color is pink by 2 pixels.
00:51The settings are completed and now I start searching for trading situations.
00:57Don't forget to like, subscribe and put the bell on. This will help me understand if you like this video format.
01:08Let's open the first bullish trade.
01:10Let me explain why I decided this way.
01:13First, pay attention to the fractal indicator if we see a red downward arrow.
01:17It means the bearish trend has ended and an upward correction begins.
01:25The second signal is the intersection of moving averages.
01:28You can notice that the blue one crosses the pink one from bottom to top, which means we have a bullish movement.
01:36As a result, we have two signals for an increase, therefore we open a trade for an increase.
01:41As a result, the trade closes with profit and our forecast was correct. Go ahead.
01:59We open the next trade down. Let me explain why I decided this way.
02:06First, pay attention to the fractal indicator if we see a green-up arrow.
02:10It means the bullish trend has ended and a downward correction begins.
02:19The second signal is the intersection of moving averages.
02:22You can see that the blue one crosses the pink one from top to bottom, which means we have a bearish movement.
02:30We have two downside signals, therefore we open a downside trade.
02:34The trade is closed with a profit, which is good news. I suggest continuing to look for trading situations.
02:54We open two trades and go down again.
02:56The logic here is absolutely similar to previous trades.
02:59Let me repeat it again.
03:01First, pay attention to the fractal indicator if we see a green-up arrow.
03:05It means the bullish trend has ended and a downward correction begins.
03:09The second signal is the intersection of moving averages.
03:12You can see that the blue one crosses the pink one from top to bottom, which means we have a bearish movement.
03:18We have two downside signals, therefore we open a downside trade.
03:22The trade is also closed with a profit because we strictly follow the strategy.
03:40I think that we need to show a couple more trades as an example.
03:43Before opening a bullish trade, I waited for the price to fall.
03:52Let us repeat once again that how to analyze a chart in this case is very simple.
03:56First, pay attention to the fractal indicator if we see a red downward arrow.
04:01It means the bearish trend has ended and an upward correction begins.
04:10The second signal is the intersection of moving averages.
04:13You can see that the blue one crosses the pink one from bottom to top, which means we have a bullish movement.
04:19We have two signals for an increase, therefore we open a trade for an increase.
04:32We took a very good price movement and made good money.
04:35I suggest we continue.
04:38Give me a little time because I recently saw a good trading situation and I want to show it without unnecessary video cuts.
04:44Here I also open upward trades.
05:04The logic is simple and clear and I will repeat it again, especially for you.
05:08First, pay attention to the fractal indicator if we see a red downward arrow.
05:12It means the bearish trend has ended and an upward correction begins.
05:16The second signal is the intersection of moving averages.
05:19You can see that the blue one crosses the pink one from bottom to top, which means we have a bullish movement.
05:25We have two signals for an increase, therefore we open a trade for an increase.
05:30I think that today in the video I showed you an excellent strategy on which I earned more than $10,000 per video.
05:47I think that now you will use it in your trading.
05:50And I remind you that in the description there is a link to register on the platform.
05:54As when you register using my link, you get access to a private site with strategies and a course on technical analysis.
06:01Thank you very much for watching.
06:02Good luck.
06:03Thank you very much for watching.
06:04Good luck.