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Are you tired of entering trades right at the very end of a trend? In this comprehensive financial education tutorial, we break down the Vortex Indicator Reversal Strategy and show you how to use technical analysis to predict the next market turn with higher precision.

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 when the lines cross.

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DISCLAIMER:
The information contained in this video is for educational and informational purposes only and should not be considered financial advice. Trading stocks, options, forex, or crypto involves significant risk of loss and is not suitable for every investor. Past performance is not indicative of future results. Never risk capital you cannot afford to lose. Consult with a licensed financial professional before making any investment decisions.

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Transcript
00:01In this video, I'm going to be trading OTC currency pairs, utilizing one indicator, the Vortex indicator.
00:11Gus Schmidt here, and I'm back with another trading video.
00:14So I'm back on the Pocket Option platform, and I'm going to be trading OTC currency pairs here.
00:21So if we click on the assets icon here, Pocket Option has various assets available to trade.
00:27They have currencies, cryptocurrencies, commodities, stocks, and indices.
00:32I'm going to be focusing on OTC currency pairs.
00:36So when we click on the currency icon here, the drop-down menu shows up, pops out, and I have
00:44all the OTC pairs checked off here.
00:47So when you check off the OTC pairs, they appear at the top of the chart here.
00:53That way, I'm able to analyze each currency pair individually and quickly here.
01:02Okay, so I'm going to be utilizing one indicator.
01:06So if we click on the indicator icon here, the indicator is the Vortex indicator here, right here.
01:22So click on the Vortex indicator, and the indicator shows up at the bottom of the chart here.
01:29And when I click on the pencil icon for the Vortex indicator, I have the period set to 3.
01:37The default setting, I believe, is 14, but I've set it to 3 to make it more sensitive to reversals,
01:44reversals, because we're going to be taking fast 60-second trades.
01:50And in the style settings here, I've put the VI plus line to green 3 pixels in length and width,
02:02and the VI minus line to red 3 pixels line width.
02:07So we can go ahead and save that.
02:09For the candlestick chart here, I have my candle set to 15 seconds, S15, regular Japanese candles.
02:20And for my trade timer, I have it set to M1 or 1 minute.
02:26So I'll be taking fast 60-second trades while looking at these 15-second Japanese candles.
02:34And one other thing here, the chart time, I've set it to 30 minutes or about 30.
02:45It's currently set to 33.
02:48That's fine.
02:49So when you set the chart time, be sure that your candlesticks are also set to 15 seconds,
03:03because sometimes when you change the chart time, the candlestick times change.
03:11So make sure you have it to M30 or M33 in this case, 16-second candles.
03:19Okay, so what I'm going to do now is I'm going to look for a trade setup here.
03:24All right, so what I'm going to do is I'm waiting for a cross of the vortex lines here,
03:34the green vortex line and the red vortex line.
03:38The green vortex line is the plus VI line.
03:41The red vortex line is the minus VI line.
03:45So I'm going to wait for the cross.
03:48It's important that you take the trade exactly when the cross occurs,
03:52because these trades are very fast, and timing is extremely important.
04:00So currently we have a bearish trend happening here.
04:07There's good price action.
04:09You also want to see good price action happening here in the currency pair.
04:13So I'm on Swiss franc, Norwegian kroner.
04:19So wait for the cross before I take the buy.
04:23All right, there we go.
04:26So I just took a buy trade here, waited for that cross.
04:30The instant the cross took place, I took the buy trade,
04:34because the VI line crosses over the red line in the upward direction.
04:39So that tells me to take the buy trade here.
04:43So like I said, you have to take the trade immediately when the cross occurs.
04:49So let's monitor this trade and wait for the expiration.
05:09I think we have about 10 seconds left in the trade.
05:26Okay, so that trade was in the money.
05:29All right, so let's go and analyze and look for the next currency pair.
05:35There's some good price action happening here.
05:39So I'm going to stay on this currency pair and look for trades to take.
05:48Like I mentioned, we have some good price action happening here.
05:52It's not consolidating or ranging.
05:56There's a lot of bearish and bullish trends occurring here.
06:02Plus, these candles are 15 seconds each.
06:06So it really helps us to break down the micro trends happening in the currency pair
06:13as we're taking these 60-second trades.
06:20So let's keep an eye on this.
06:22There's currently a bearish trend happening, an overall bearish trend here.
06:29So I'm going to look for a bearish trade.
06:33We want to kind of trade with the trend.
06:35Although this trend, this strategy is a reversal strategy.
06:42I think there's, you know, there's a better probability when the reversal occurs.
06:50Okay, so here there's a cross that occurs.
06:54So let me go ahead.
06:54I'm going to go ahead and take a sell trade here.
06:58Here, the VI line, the red VI line, cross the green VI line here.
07:06So this suggests a bearish momentum over the next 60 seconds.
07:13So let's monitor this trade and wait for the expiration.
07:20So let's monitor this trade here.
07:22Let's see.
07:23Let's go ahead and find the moment.
07:25Let's see.
07:32Let's do this.
07:37Do it.
07:54Okay, so that trade was in the money, so it was a video, it was like this, okay, so I
08:04just took a buy trade, if you notice, I waited for that complete cross here of the plus
08:12VI line and the minus VI line, the plus VI line crossed above the red vortex line here
08:19in an upward direction, so this suggests a bullish push to the upside here, so let's
08:29monitor this trade and wait for the expiration.
08:32Yeah.
09:00All right.
09:01And so let's see.
09:04okay so you saw that there was a last push at the end here so that trade was in the
09:09money
09:10all right so let me uh pause the video and look for another potential
09:24i saw the trade so i took the trade here on the usd russian ruble
09:31otc pair here and the reason why i took the trade i i immediately saw the cross of the vortex
09:37lines
09:38here the red line crossing the green vortex line in an upward direction so that tells me
09:44there's a bearish reversal occurring here
09:50so uh i took it right away
09:55so let's watch this trade and wait for the expiration
10:11awesome so that trade was in the money
10:14all right so i'm gonna end the trading session here uh this is a very powerful strategy
10:20that i've developed if you like the video please give it a thumbs up subscribe to my channel if
10:28you're interested in learning keeping up to date with my latest trading strategies i have a link to
10:33the trading platform in the video comments or the uh in the video description or the channel bio
10:43uh i also wanted to take note that i've only been risking about less than one percent of my capital
10:49the idea is we want to grow our grow our account slowly but surely if we take if we risk
10:57huge percentages of our capital those can lead to huge losses
11:02the options trading uh which is specifically binary options you need to have if the return on an asset
11:13is about 80 percent on average some of these assets are they have higher returns like 92 percent
11:22some have lower returns but the general average is 80 and in order to have a uh
11:32able to grow your account your win rate has to be at least 66 percent
11:39or two out of three trades so every for every three trades you take two of them have to be
11:44in the money
11:45in order to grow your account okay so thank you for watching and i'll see you in the next video
11:54gush mit
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