00:01in this video i'm going to be trading stock binary options utilizing fractal chaos bands
00:09the 20 period simple moving average and the 50 period simple moving average
00:16gush schmidt here and i'm back again with a new trading video so today i'm on the pocket option
00:22platform and like i mentioned i will be trading stocks on the platform here so if we click on our
00:32icon button here uh the section pocket option has various assets available trade currencies
00:40cryptocurrencies commodities stocks and indices so i'll be focusing on stocks here
00:45so what i did is you click on the stock icon and scroll and i select all the regular stocks
00:55not
00:55the otc stocks i'm going to be trading regular stocks on the platform here and when you select
01:02those stocks they appear here at the top of the chart and i'm going to be utilizing two indicators
01:11indicators the first indicator is the fractal chaos band line here and i have the period set to two
01:22and in the style settings i've changed the background color to white so we can go ahead and save that
01:29to find the indicator here uh it's you click on the indicator icon here and you click on fractal chaos
01:40bands and also i'll be using two moving averages so you click this icon here twice for the two moving
01:49averages
01:51uh for the fractal in the front the fractal chaos band line here we have these green lines and the
01:58red
01:58lines the green line represents dynamic levels of resistance while the red lines represent dynamic levels
02:06of support and these lines are levels are constantly changing over time okay so for my moving average the
02:15first moving average i have is the 50 period 50 sma here so you set the period to 50 simple
02:25moving average
02:26and in the style settings i have the color set to green and the line width set to two pixels
02:32so we go ahead and save that and this is this green line here and for the second moving average
02:40i have the period set to 20 sma for simple moving average and in the style settings i have the
02:47color of
02:47the line set to blue line width two pixels so we go ahead and save that okay now for my
02:54candlestick charts
02:55i have the candle set to one minute regular japanese candles here m1 and for my trade timer
03:04i have my trade set to five minutes or m5 so i'll be looking at these one minute candles while
03:13taking five
03:14minute trades okay so what i'm going to do now is i'm going to pause the video and look for
03:22some
03:22stock options stock binary options setups okay so i'm on cisco and i just took a buy trade
03:31and the reason why i took the buy trade here is uh first of all the this candle here closes
03:39above this
03:40upper boundary of the fractal chaos band line here i didn't take the trade here uh we have a boundary
03:50here
03:52but there's another upcoming boundary here so we needed to watch that so i waited for the this candle
03:59to close above this upper boundary which suggests a bullish breakout to the upside here secondly we have
04:07the 20 sma the blue 20 sma line sloping upwards as well as the 50 green sma line sloping in
04:17an upward
04:17direction which would suggest also a bullish trend here so i have all three of these confluences the
04:24breakout here of this candle above the upper boundary of the fractal chaos band line as well as the
04:32the positive sloping 20 and 50 sma line so what i'm going to do is i'm going to pause the
04:38video and wait
04:38till about 30 seconds left in the trade right now the price is retracing
04:44but i'm anticipating this price will continue to push upward uh over the next five minutes so i'm
04:51going to pause the video with about 30 seconds left in the trade and look for the results
04:58okay so we have about 30 seconds left in this cisco trade here and as predicted the even though we
05:08had a
05:09retracement here from the entry price the green line represents uh the entry price here the price pushed
05:18upward in a bullish momentum here uh above our entry and so yeah we won that trade all right so
05:27to recap
05:27i waited for the candle to close above this upper boundary of the fractal chaos band line uh
05:36looked at the slope of the the two sma lines of the 20 and the 50 and took the buy
05:42trade okay so i'm
05:43going to pause the video and look for the next setup
05:48okay so i just took a trade on microsoft i took a buy trade and the reason why i took
05:56the buy trade here is
05:59this get this get this green candle closes above the upper boundary of the fractal chaos band line
06:11secondly i have the 20 sma here the blue 20 sma sloping upwards suggesting a continued bullish trend
06:21uh same with the 50 sma the green 50 sma line is showing a upwardly sloping line here
06:32but before i took the trade uh i wanted to see the behavior of the next candle here
06:40and the next candle shows a slightly bullish uh candle here if you notice and so i took the trade
06:47right around this level here it slightly retraced but i'm anticipating uh continued bullish momentum
06:56to the upside over the next five minutes so i'm gonna pause the video and wait till about 30 seconds
07:04left left in the trade so we can see the the results of this trade at the end of five
07:10minutes
07:16okay so to recap this trade uh i took the trade waited for this candle here
07:24to close above this previous upper boundary here there's a new boundary that's developed here but
07:30we took the trade we took the trade here uh waited for this candle here to see the movement of
07:36this
07:36candles notice there was a bullish candle here so i went ahead and took the trade we just have a
07:43few
07:43uh seconds left in this trade uh but the the main
07:50idea is that we wait for the candle to close
07:55above the upper boundary of the fractal chaos band line which which represents a level of
08:02uh resistance so once it broke that resistance
08:07uh this suggested a bullish uh push to the upside and so that trade was in the money
08:14all right so i'm going to pause the video and look for the next setup
08:18okay so i'm on johnson and johnson stock and i just took a buy trade here
08:24and similarly to the previous trade the reason why i took the buy trade is you see this get this
08:31long green candle here it closes above the upper boundary of the fractal chaos band line here
08:39which suggests a bullish breakout to the upside but even though the candle closed above the upper boundary i
08:49watched the behavior of the next candle and if you see here this candle is also green so this confirms
08:59uh the bullish momentum the bullish breakout so i went ahead and took the trade
09:05uh on this candle here at this level here you see this green level here that's my entry price
09:13and once i saw these green candles developing here uh i knew that there would be a bullish
09:21uh breakout to the upside here so what i'm gonna do is i'm gonna pause the video
09:26uh and wait till about 30 seconds left in the trade to come back and check the results of the
09:31trade
09:34also i forgot to mention that if we look here the uh we have the blue 20 sma line sloping
09:43upwards
09:44and the also the 50 sma line is sloping upwards so the three confluences here with the the breakout over
09:53the fractal chaos ban line and the positively sloping sma lines uh is what made me determined to take the
10:04trade
10:05all right so i'm gonna wait till about 30 seconds left come back and check the results
10:11okay so i'm on back on the johnson and johnson and uh that trade resulted in a loss okay so
10:19despite our best
10:20efforts uh in identifying lining up all the indicators uh sometimes uh we we do incur losses so not a
10:30problem
10:31what i'll do is uh we're gonna pause the video and look for another setup
10:40okay so i'm on mcdonald's and i just took a buy trade and the rationale for taking the buy trade
10:48is
10:50the even all right so we have this candle doesn't close this candle closes above this upper boundary
10:56here but we also have to be aware of this boundary over here which represents a level of uh resistance
11:05here
11:08so this candle here closed above this upper boundary here this green candle here but then there was a
11:17sharp retracement back down so i didn't take the trade then
11:23so this candle closes above uh this
11:28boundary here but we have this boundary to contend with so
11:34noticed the uh this big green candle here closed above this upper boundary here
11:44so this suggests a bullish uh breakout to the upside i waited for this candle to close uh saw this
11:51candle
11:51developing here and it pushed past this boundary here so i had i went ahead and took the buy trade
11:58in
11:58addition to that if you see the 20 sma line sloping upwards along with the 50 sma beginning to uh
12:08sharply slope
12:09upward here uh so what we're going to do is i'm going to pause the video and wait for the
12:19expiration of this trade
12:22and see the results
12:28okay so i'm back at mcdonald's uh waiting for the results of this trade
12:34although there was a a retracement i took the entry right here where the green line is although there was
12:40a retracement
12:41uh there was a pushback upward uh there was a pushback upward above the above the entry price here
12:53okay so we won that trade okay
13:01we caught the entry at the right price uh even though the retracement came i pushed further upward here
13:09resulting in a win all right so i'm going to pause the video and look for the next set okay
13:15so i'm on
13:15netflix and i just took a buy trade and the reason why i took the buy trade is first of
13:24all we see the 20 sma
13:25lines uh blue 20 sma sloping upwards followed by the 50 sma also sloping in an upward direction
13:35both suggesting a bullish trend a continued bullish trend
13:44but more importantly here this green candle closed above the upper boundary of the fractal chaos band line
13:51here so this suggests a bullish breakout to the upside over the next five minutes so we're going to monitor
13:59this trade and wait for it to play out uh for the next five minutes but in the meanwhile i'm
14:07going to
14:07pause the video and wait till about 30 seconds left in the trade so we can get the results of
14:14the trade
14:19okay so we have a few seconds left in the netflix trade here so let's monitor the results and wait
14:31for the expiration
14:36okay so that trade was in the money uh to recap here i waited for the this uh green candle
14:44to close above the
14:46upper boundary of the fractal chaos band line which suggests a a bullish breakout to the upside
14:54also the 20 and the 50 sma lines are showing sharp a sharp upward sloping trend lines suggesting a bullish
15:04trade a bullish momentum as well so i use all three conferences to take the buy trade okay so i'm
15:12going
15:12to pause the video and look for the next setup okay so i'm on tesla and i just took a
15:20sell trade
15:22on tesla here i took a a sell option for five minutes and the reason why i did this is
15:33this candle the strong bearish candle here closed below this lower boundary
15:40of the fractal chaos band line also beginning to see a downward sloping green 50 sma line here
15:49and the 20 sma is showing a bearish uh trend line here to the downside so these three confluences
16:02suggest a a bearish uh trend over the next five minutes in the price of tesla
16:12okay so we're gonna monitor this trade and i'll come back to this trade at the end of five minutes
16:19to see the checking on the results of the trade okay so we have about 30 seconds left in this
16:30trade
16:31on tesla and as predicted the price continued to push downward in the bearish direction
16:42uh to recap yeah we see the both the 50 and the 20 sma lines sloping downwards and then we
16:50uh entered the
16:51trade when the candle closed below the this boundary this lower boundary of the fractal chaos band line
16:58so that trade was in the money okay so i'm gonna end the trading session here i think we
17:04got four out of five trades we did get a loss uh the whole idea is that we collect more
17:10winners than losers
17:13if you like the video please give it a a thumbs up comment if you have any questions about the
17:19strategy
17:20subscribe to my channel if you're interested in keeping up to date with my uh of my with my latest
17:26trading strategies i have a link to the pocket option platform if you're interested in uh trading
17:34uh it's in the video comments and or in the channel description i suggest you start with a demo account
17:43first uh also i wanted to make note that uh i was risking about five percent of my capital
17:50uh on each trade you don't want to risk large percentages of your capital because sometimes you
17:57will incur losses so you don't want to incur huge losses the whole idea is that you get more
18:04winners than losers thereby growing your account slowly but surely and consistently okay
18:12gush mitt thank you for watching fractal chaos bands 20 simple moving average 50 simple moving
18:20average trading strategy and i'll see you in the next video
18:22you
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