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Are you trying to spot explosive trend reversals before buying calls or puts? In this step-by-step tutorial, you will learn exactly how to trade options using the Vortex Indicator.

The Vortex Indicator (VI) is a powerful technical analysis tool designed to identify the start of a new trend and confirm trend strength. When trading options, timing is everything—getting in too early can expose your contracts to theta decay (time decay), while getting in too late crushes your risk-to-reward ratio.

By utilizing the crossovers of the Positive Indicator Line (VI+) and Negative Indicator Line (VI-), you can pinpoint trend shifts with much higher accuracy. I cover the core logic of the indicator, how to set up your charts, and exactly how to use it for buying calls and puts. When setting up your charting platform pay close attention to how the lines cross.

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🚩 DISCLAIMER
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.

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Transcript
00:00In this video, I'm going to be trading regular currency pairs utilizing one indicator, the Vortex Indicator.
00:11Gus Schmidt here and I'm back again with another trading video.
00:15So today I'm back on the Pocket Option platform and I'm going to be trading regular currency pairs here.
00:22So if we click on our assets icon here, I have the currency icon open up.
00:30So if we scroll down here, I have all the various regular currency pairs, not the OTC pairs highlighted here.
00:39So that way they can appear at the top of the chart here and I can quickly go through each
00:45asset pair and analyze quickly.
00:49Okay, so I'm going to be utilizing one indicator here and that is the Vortex Indicator.
00:56So if we click on the indicator icon here, the Vortex can be found here.
01:02So we click on that and the Vortex Indicator appears here at the bottom of the chart.
01:11So if I click on the pencil icon for the Vortex Indicator, I have the period.
01:18I've set the period to 4 to make it sensitive here.
01:22I believe the default may be 14, but I've set it to 4.
01:28And in the style settings, I've increased the line width of the VI plus line to green 3 pixels and
01:35the VI minus line to red 3 pixels here.
01:39So this is the VI plus line and the VI minus line here.
01:45Okay, for the candlestick charts, I have my candles set to 30 seconds, regular Japanese candles.
01:54And for my trade timer, I have the trade set to 1 minute expiry.
02:00So I'll be taking fast 1 minute trades while looking at these 30 second Japanese candles.
02:08Okay, so what I'm going to do now is I'm going to pause the video and look for some trade
02:12setups.
02:16Okay, so I'm on the Aussie-Dollar-Swiss-Frank currency pair, and I just took a sell trade here.
02:26And the reason why I took the sell trade is I saw the Vortex line, the minus VI line of
02:34the Vortex line, cross over the green VI line here.
02:38And so I took the trade immediately.
02:41In order for this strategy to work, you have to take the trade exactly when the lines cross here.
02:49So these are fast trades, so the timing is extremely important.
02:55So let's monitor this trade and wait for the expiration at the end of the 60 seconds.
03:13Okay, so that trade was in the money.
03:15It was a winner.
03:17Okay, so let me pause the video and look for our next trade setup.
03:22Okay, so I'm on the US-Dollar-Canadian-Dollar currency pair here, and I just took a sell trade.
03:30And the reason why I took the sell trade, if you notice here, the Vortex lines crossed the VI line,
03:39the red VI line, crosses above the green VI line here in an upward direction.
03:45So this suggests a bullish, excuse me, a bearish trade to the downside here over the next 60 seconds.
03:54So let's monitor this trade and wait for the expiry.
04:02Okay, so that trade was in the money.
04:20Like I mentioned in the previous trade, you want to, as soon as you see the cross, you take the
04:28trade in the direction of the cross here, which here, when it crosses above, when the red VI line crosses
04:36above the green, it's a sell trade.
04:38When the green crosses above the red, it's a buy trade.
04:42Okay, so I'm going to pause the video and look for our next trade setup.
04:49Okay, so I'm on the US-Dollar-JPY currency pair, and I took a buy trade here.
04:59And the reason why I took the buy trade, as soon as I saw the cross of the green Vortex
05:08line over the red Vortex line right here, I went ahead and took the buy trade, waited for the cross.
05:17As soon as the cross occurred, I took the buy trade.
05:20Okay, so let's monitor this trade and wait for the expiration.
05:45Okay, that was close, but we eked out another winner here.
05:50Okay, so I'm going to pause the video and look for the next trade setup.
05:56Okay, so I'm on the Aussie-Dollar-Swiss-Frank currency pair, and I just went ahead and took the buy
06:04trade here.
06:04And the reason I took the buy trade is I saw the cross of the green Vortex line and the
06:12red here, green crossing above the red in an upward direction here.
06:17So, as soon as the cross occurred, I went ahead and took the trade, the buy trade.
06:23So, let's monitor this trade and wait for the expiration at the end of the 60 seconds.
06:30Okay.
06:49Okay, so that trade was in the money.
06:52All right.
06:53So, let me pause the video and look for our next trade setup.
06:59Okay, so I'm on the Great British Pound-Swiss-Frank currency pair, and I just took a sell trade here
07:08or put trade.
07:09The reason why I took the put trade here, waited for the cross of the minus VI line, the red
07:16minus VI line in the green.
07:19Positive VI line here, red crossed above the green in an upward direction.
07:25So, that suggests a, you know, a bearish sell trade.
07:31So, let's monitor this trade and wait for the expiration.
07:45Very important, you take the trade exactly when the cross occurs.
07:49These are 60-second trades, so timing is extremely important.
08:06Okay, so that trade was also in the money.
08:11Okay, so I'm going to pause the video and look for another setup.
08:23Okay, so I'm on the Great British Pound-USD currency pair, and I just took a sell trade, waited for
08:34the cross of the vortex lines here.
08:37The red vortex line crossed over the green vortex line in an upward direction.
08:42If you notice here, there appears to be a reversal here occurring in the price here.
08:50It had been previously bullish, but it looks like the start of a bearish trend, so the vortex line crosses.
09:00So, I took the trade immediately when the lines crossed.
09:04So, let's monitor this trade and wait for the expiration.
09:18Okay, so that trade was also in the money.
09:21Okay, so I'm going to close my trading session out today.
09:25If you like the video, please give it a thumbs up.
09:28Subscribe to my channel if you want to keep up to date with my latest trading strategies.
09:33I have a link to the trading platform in the video comments or the video description or the channel bio.
09:41I also wanted to make note that I've been risking less than 1% of my capital here.
09:47The idea is you want to grow your account slowly.
09:51If you risk high percentages of your capital, that can lead to losses.
09:56That can lead to big losses as well.
09:59So, with binary options, if the rate of return on a particular asset is around 80%, you need to have
10:08at least a 66% win rate, 66% to 70% win rate, in order to grow your account.
10:16Okay, so it's very important.
10:20And you want to win at least two out of three trades when you're trading these options.
10:28All right?
10:29So, thank you for watching, and I'll see you in the next video.
10:33Gus Schmidt.
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