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Are you tired of getting shaken out of strong trends right before the market takes off? In this financial education tutorial, we break down a rule-based price action system: The Vortex Indicator Divergence Strategy for high-probability trend continuation trades.

Most traders only use the Vortex Indicator (VI) for basic crossovers. In this video, you'll learn how to analyze the structural divergence between the +VI line and the -VI line. When price pulls back but the internal lines of the Vortex indicator signal strength, it exposes a hidden trend continuation setup before the breakout happens.

To ensure we don't buy into a dying market, we couple this price action setup with a Momentum Indicator to measure absolute trend strength and speed.

Whether you are a crypto day trader, forex swing trader, or stock market investor, this technical analysis framework will help you stop guessing and start reading momentum objectively.

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🚩 DISCLAIMER (Required for Compliance):
The content on this channel is provided for financial education and informational purposes only. Trading Forex, stocks, and cryptocurrency involves significant risk of loss and is not suitable for every investor. Past performance is not indicative of future results. I am not a licensed financial advisor, CPA, or broker. Always perform your own due diligence and consult with a professional professional before making any financial decisions or investing real capital.

vortex indicator strategy, vortex indicator divergence, trend continuation trading, how to use vortex indicator, +VI and -VI lines, momentum indicator strategy, measuring trend strength, price action trading, technical analysis tutorial, day trading frameworks, swing trading strategies, advanced indicator setups, trading pullbacks, rule based trading strategy

#VortexIndicator #TechnicalAnalysis #PriceAction #TradingStrategy #TrendContinuation #MomentumTrading

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Transcript
00:00In this video, I'm going to be trading OTC currency pairs, utilizing two indicators,
00:10Vortex Indicator and the Momentum Indicator, Gush Schmidt, and I'm back again with another
00:17trading video.
00:18So I'm on the Pocket Option platform, and I'm going to be trading OTC currency pairs
00:24on the platform here.
00:27So if we click on our Assets icon here to the left, Pocket Option has various assets
00:34available to trade.
00:35They have currencies, cryptocurrencies, commodities, stocks, and indices.
00:41I'm going to be focusing on OTC currency pairs currently.
00:47So if we click on the icon here, the currency icon, just drop down menu, pops up, and I've
00:56already checked off all the various currency assets here and checked off the start off
01:12all the OTC assets, like I mentioned, with high payouts.
01:19So when you do that, the assets appear at the top of the chart here, so I can go through
01:25and analyze each of the assets, currency assets, individually and quickly.
01:31Okay, so I'm going to be utilizing two indicators.
01:35So if we click on our indicator icon here, the two indicators are the Vortex Indicator here
01:43and the Momentum Indicator right here.
01:47So when we check those two indicators off, you see the indicators here at the bottom of
01:52the chart.
01:54And what I've done is, okay, so for the Vortex Indicator, if we click on the pencil icon,
02:03I've configured the period to 14 here, and in the style settings, I've increased the line
02:15width of each of the lines, the VI plus line to green two pixels and the minus VI line here
02:22to red two pixels.
02:24So we can go ahead and save that.
02:26And for the Momentum Indicator, I have the period set also to 14, and in the style settings,
02:37everything remains the same.
02:39All right, so let's go ahead and save that.
02:41And for my candlestick charts, we'll click on the icon here.
02:48I have my candle set to one minute, one minute regular Japanese candles.
02:54And for my trade timer, I also have it set to M1 or one minute.
02:59So I'll be looking at these one minute candles while taking one minute or 60 second trades,
03:05fast turbo trades.
03:07Now here, for the time frame on the chart here, I'm going to change it from M33 here to
03:22one hour, H1 or one hour.
03:25That way, when you do that, it gives me more of a window to look at the price action.
03:32Okay, so what I'm going to do now is I'm going to pause the video and look for some trade
03:39setups.
03:44Okay, so I'm on the USD-JPY-OTC pair, and I just took a sell trade here.
03:52Now, the reason why I took the sell trade, first of all, we're seeing the start of a bearish price
03:58action here
03:59in the price of the currency.
04:01Secondly, if you see the vortex indicator here, the minus VI line and the plus VI line are showing a
04:11divergence
04:12between the two signal lines here.
04:15And everybody knows how much I love divergence.
04:20I'm unorthodox in the way I use some of these indicators.
04:24People are usually looking, waiting for the cross before they take the trade.
04:28Secondly, I look for divergence.
04:30I'll look for a cross when it's available, but I'll also look for divergence here.
04:34And you see here the growing divergence.
04:37And secondly, if you look at the momentum indicator, the bars are printing below.
04:44And okay, so we won that trade.
04:46So bars are also have printed below the zero line.
04:51We have some strong red histogram bars.
04:54So all of these confluences suggested to take a sell trade there.
04:59And I took the trade.
05:00So that trade was in the money.
05:02Okay.
05:03So I'm going to pause the video and look for the next trade setup.
05:10Okay.
05:10So I'm on the USD, BDT, OTC pair.
05:15And I just took a buy trade here.
05:17Now, the reason why I took the buy trade is if you look at the vortex lines here, the green
05:27plus VI and the minus VI lines are showing a growing divergence here between the lines.
05:34And then secondly, if you look at the momentum indicator, we're seeing the green histogram
05:43lines printing above the zero line here.
05:47They've been printing below the zero line, but now they're printing above the zero line
05:51here.
05:52So when you have the divergence of the vortex lines, the increase in momentum, the histogram
05:59lines increasing in length of the bars here, this suggests a continued bullish push to the
06:07upside here.
06:08We're kind of seeing a bullish, currently a bullish trend here.
06:13And that trade was also in the money.
06:17All right.
06:19So first thing you want to do is look for that, the vortex divergence and look for these
06:25growing histogram lines to print.
06:27Okay.
06:28So what I'm going to do now is I'm going to pause the video and look for the next trade
06:32setup.
06:36So I'm back on the UAH, USD, OTC pair, and I just took a buy trade here.
06:45And the reason why I took the buy trade, if you look at the price action currently happening
06:49with the pair here, there's a bullish price action.
06:53Generally, you want to trade with the current trend.
06:55And then look at this.
06:57You see the vortex, the separation of the vortex lines here, the divergence I previously mentioned.
07:04And then if you look at the momentum indicator here, it's printing, the bars are printing above
07:11the zero line and they're increasing in length here.
07:14So these three confluences suggest a continued bullish push to the upside in the price of the
07:21currency pair over the next 60 seconds.
07:24So let's monitor this trade and wait for the expiration here.
07:29This is an example of a great trade here.
07:32Look at this divergence, growing histograms, growing momentum bars on the histograms.
07:51Okay.
07:52So that trade was in the money.
07:56Okay.
07:56So I just wanted to show everyone that the last trade did when it was in the money here,
08:01the UAH, USD, OTC pair, that was a winner.
08:06Okay.
08:07All right.
08:07So on to the next setup.
08:12Okay.
08:13So I'm back on the OMR, CNY, OTC pair.
08:18And here I just took another sell trade.
08:20I took a sell trade here.
08:21And the reason why I took the sell trade, if we look at the price action, first of all,
08:26there's a generally a bearish trend occurring in the price.
08:31Secondly, the vortex lines are showing a growing divergence here.
08:35Do you see that?
08:36A growing separation of the lines here.
08:38And then if you look at the momentum indicator, the histogram bars are not only printing below the zero line,
08:48but also growing, generally growing in length here.
08:52So all three of these confluences suggest a continued bearish push to the downside in the price of the currency
09:00pair.
09:08Okay.
09:08Great.
09:09So that trade was in the money.
09:11All right.
09:12So I'm going to pause the video and look for the next trade setup.
09:21Okay.
09:21So I'm on the Aussie dollar, US dollar, OTC pair.
09:26And I just took a buy trade here.
09:28And the reason why I took the buy trade is, first of all, we're seeing some bullish candles here forming
09:36here, suggesting a bullish trend currently.
09:42Then if you look at the vortex indicator, there's a divergence, a growing divergence of the two lines here, a
09:51separation of the lines.
09:53And then third, the momentum indicator has begun to print green candles above the zero line.
10:01So these three confluences suggest a bullish push to the upside in the price of the currency pair.
10:10So let's monitor this trade and wait for the expiration.
10:25Okay.
10:26So that trade was a winner here.
10:30At the last second, there was a last push here.
10:33And the price continues to push upward.
10:36Okay.
10:37So let me pause the video and look for our next trade setup.
10:45Okay.
10:45So I'm on the USD, CNH, OTC pair.
10:50And I just took a buy trade here.
10:54And the reason why I took the buy trade is, first, if you look at the price action, there's currently
10:59a bullish trend occurring here.
11:03Kind of was consolidating here.
11:05But now it's being to what appears to be a bullish trend here.
11:10Secondly, we have the divergence of the vortex lines here on the indicator.
11:15Like I mentioned, I don't necessarily trade crosses here.
11:20Sometimes when you trade the cross, it may reverse back against you.
11:23I like to trade divergence.
11:25So there goes the divergence.
11:27And then if you look at the momentum indicator here, the bars, the green bars are printing above the zero
11:35line here.
11:36And they're generally increasing in length.
11:39So all three of these confluences, the price action, the divergence of the vortex lines, and the momentum histogram lines
11:50printing, suggest a bullish trade to the upside, a bullish price action.
11:55And that trade was in the money.
11:57Okay, so I'm going to end the trading session here.
12:02If you like the video, I ask that you please give it a thumbs up.
12:06Subscribe to my channel if you're interested in keeping up to date with my latest trading strategies.
12:12I have a link to the platform, the trading platform, the pocket option trading platform, in the video comments or
12:20the video description or the channel bio.
12:24I also wanted to take note, I've only been risking no more than 1% of my capital here.
12:29The whole idea is that we want to grow our account slowly but surely.
12:36We don't want to risk high percentages or our capital because they can lead to big losses.
12:43The idea is when you're trading binary options, if the rate of return on a particular asset is about 80%,
12:51then you need to show at least a 66% rate of return in order for you to grow your
12:58account.
12:59Okay, so thank you for watching, and I'll see you in the next video.
13:05Gus Schmidt, Vortex Momentum Trading Strategy.
13:10I'll see you in the next video.
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