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  • 3 days ago
Precision in Forex trading isn't about finding a "holy grail" indicator—it's about building a systematic setup that filters out noise and confirms high-probability entries. In today's video, I break down my complete 6-indicator setup: a stacked SMA portfolio (3, 9, 20, 50, 100) combined with the Vortex Indicator for trend confirmation.

The Vortex Indicator (VI), developed by Etienne Botes and Douglas Siepman and published in the January 2010 edition of Technical Analysis of Stocks & Commodities magazine , consists of two lines—VI+ (bullish pressure/uptrend momentum) and VI- (bearish pressure/downtrend momentum) . It draws inspiration from J. Welles Wilder's True Range concept and the physics of vortex flows .

When VI+ crosses above VI-, it signals strengthening bullish momentum. When VI- crosses above VI+, bearish momentum is taking over . But here's the key insight: the Vortex Indicator works best as a trend confirmation tool, not a standalone signal . That's why I combine it with a multi-SMA stack to filter out false signals and identify only the highest-probability setups.

Why This Setup Works for Precision:

The SMA stack defines the market structure and trend direction. When all 5 SMAs (3, 9, 20, 50, 100) are aligned in order, it signals a strong, established trend . The Vortex Indicator then acts as your precision trigger—it confirms that momentum supports the direction indicated by the SMAs . This two-layer confirmation system helps you avoid entering during choppy, sideways conditions where false signals are common .

📊 What You Will Learn (Watch the Full Breakdown):

Why Precision Matters in Forex Trading
My 5 SMA Stack: What Each SMA Does
The Vortex Indicator Explained (VI+ vs VI-)
The Complete Setup: SMA Alignment Rules
The Precision Trigger: Vortex Crossover Confirmation
Live Forex Chart Walkthrough (3 Trades Analyzed)
Risk Management for This Setup
Common Mistakes to Avoid

Open Free Demo Trading Account: https://pocketoptioncapital.com

📌 THE SETUP RULE:

Step 1 - Define the Trend (SMA Alignment): Wait for the 3 & 9 SMAs to be above the 20 & 50 & 100 SMAs (bullish) OR below (bearish) . This tells you the direction of the prevailing trend.

Step 2 - Confirm Momentum (Vortex Trigger): Once SMAs are aligned, wait for VI+ to cross ABOVE VI- for longs, or VI- to cross ABOVE VI+ for shorts .

The Filter (The Precision Edge): A key insight is to combine the Vortex crossover with a trend filter. Using a longer SMA (such as the 50 or 100 SMA) as a trend reference helps filter out noise during choppy or sideways markets . If SMAs are aligned but Vortex lines are converging or flat—STAY OUT. This single rule saves you from false signals in ranging markets

⚠️ DISCLAIMER:
This content is for educational and informational purposes only and does not constitute financial advice. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results.

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Learning
Transcript
00:01in this video i'm going to be trading regular currency pairs utilizing a 5sma stack
00:12and the vortex indicator gush mid here and i'm back with another trading video
00:18so today what you see here is the pocket option platform i'm going to be trading currency pairs
00:24regular currency pairs not the otc pairs uh so i've already included them at the top of my chart
00:32here us dollar swiss franc great british pound us dollar and so forth and i'll be utilizing five
00:41moving averages and the vortex indicator for my moving averages uh i've included the 100 period
00:50simple moving average which is the white line here the 50 period sma which is the blue line
00:57the 20 period sma which is the green line the nine period sma which is the turquoise line here
01:07and then the final is the three period sma the fastest sma which is the three period sma in
01:16addition to that i'm going to be utilizing the vortex indicator here and for the period i've set
01:24the period to three and in the style settings i've also increased the line width of the green vi line
01:31and the minus vi line to three pixels each green and red so we can go ahead and save that
01:38for my candlestick chart i've set the candles to 15 seconds japanese candles and for my trade timer here
01:48i've set the period to m1 or 60 seconds so i'll be taking fast 60 second trades while looking at
01:57these
01:5715 second japanese candles okay so what i'm going to do now is i'm going to pause the video
02:04and look for some trade setups
02:10okay so i'm on the euro canadian dollar currency pair and i just took a sell trade here at this
02:17level
02:18and the reason why i took the sell trade is generally we're seeing a bearish trend here in the price
02:25of the currency of the currency pair all uh the sma is the 100 the 50
02:32and the nine period sma
02:38as well as the 20 are sloping uh generally downward here in addition to that i have a cross of
02:44the vortex lines here
02:46the minus vi line crossed above the green uh vi line here in an upward direction signifying
02:55a uh a bearish uh trend a bearish push to the downside over the next 60 seconds so let's monitor
03:04this trade
03:08okay okay so that trade was in the money here
03:14okay so i just took a buy trade on the canadian dollar swiss franc here at this level and the
03:21reason why
03:22i took the trade here is we're seeing a general if you look at the sma lines uh
03:28uh they're sloping in an upward direction of the 100 and the 50 are both sloping upwards here
03:41and then we're seeing a general uh then also the vortex line here i took the trade when the green
03:50vortex
03:51the plus vi line crosses over the minus vi line here in an upward direction here uh
03:57uh so this suggests a a bullish momentum at the price level that i took the trade at over the
04:06next
04:0760 seconds so let's monitor the trade was in the money there was that push upward here
04:15but let me uh pause the video and look for another setup
04:22okay so i'm on the euro jpy and i'm waiting for the cross of the vortex line i'm waiting for
04:30the
04:30red vortex line to cross above the green vortex line here in an upward direction and here we go
04:39so i just took a sell trade at this level as soon as the
04:42the vortex the vortex crossed the reason why i took the trade is we're seeing a general bearish trend in
04:51the price of the currency pair here uh the sma lines we have the the 50 sma sloping downwards along
05:05with the
05:05the 20 and the 9 period sma uh the 100 sma has is not sloping downwards but i was looking
05:16at the overall
05:17trend here uh waited for that vortex cross so let's watch this trade and wait for the expiration at the
05:24end of the end of the 60 seconds here okay all right so that trade was in the money uh
05:38three for three
05:40so let me pause the video and look for another setup okay so i'm on the aussie dollar u.s
05:49dollar
05:49wait for the cross of the vortex line and there we go it was across so i went ahead and
05:56took a cell
05:57trade here and the reason why i took the cell trade is we're seeing all the sma lines the 100
06:04the 50
06:05the 20 the 9 and the uh three period sma all sloping downwards here suggesting a strong bearish trend
06:17in addition to that i waited for the the vortex lines to cross here at this level so let's uh
06:24monitor
06:25this trade and wait for the expiration at the end of the 60 seconds these are fast turbo trades
06:34timing is extremely important
06:41okay so that was a break even trade here we didn't win we didn't lose okay let's continue looking for
06:50trade setups
06:54okay so i'm back on the euro uh the aussie dollar us dollar
07:01all right and i just took a cell trade here uh these are the types of setups that i like
07:06here i have
07:07we have all the sma sloping downwards here then i waited for the cross of the vortex line here the
07:15red vortex line crossing over the green vortex line in an upward direction we have the slope here
07:21of all the sma's sloping downwards indicating a strong bearish trend so these confluences suggest
07:28a continued bearish push to the downside in the price of the aussie dollar us dollar so let's
07:34monitor this trade and wait for the expiration this is the kind of setup that you the optimal setup that
07:42you're looking for
07:50all right another winner uh so three winners one tie so far let's look for another trade setup
08:00okay so i'm on the euro or c dollar currency pair here and i'm waiting for the cross of the
08:09vortex line
08:10here the vortex lines i need the green vortex line to cross over the red vortex line in an upward
08:18direction uh the reason why i'm looking at this trade is you notice all the sma's are sloping upwards
08:25suggesting a bearish trend occurring here in the price of this currency pair so i'm waiting for the
08:34retracement okay here we go all right so i just took the buy trade waiting for the price to retrace
08:43and wait
08:44for that bullish reversal to occur and the cross of the vortex lines tells me uh when this bullish reversal
08:55would occur so let's monitor this trade and wait for the expiry at the end of 60 seconds
09:12okay so we lost that trade not a problem let's uh move on to the next trade setup
09:21okay so i'm going to go ahead and take a buy trade here okay so the reason i took the
09:29buy trade on the
09:30us dollar canadian dollar is first of all we're seeing a general bullish trend the smas are sloping
09:40upwards then i waited for the vortex cross the green vortex line crosses over the the red vortex line here
09:48in an upward direction so this suggests a continued bullish push to the upside over the next 60 seconds
09:57in the price of this currency pair so let's monitor this trade and wait for the expiration here
10:11okay so that trade was in the money
10:16let me pause the video and look for the next setup
10:20okay so i'm watching this uh currency pair the euro us dollar i'm waiting for the cross
10:27of the vortex lines i'm waiting for the red vortex line the cross above the green vortex line here
10:36okay so let's go ahead and
10:39take the trade here all right so i just took a cell trade here waited for the vortex cross also
10:47we're seeing the sma sloping downwards suggesting a bearish trend uh the alignment here uh waited for that
10:58vortex cross so let's wait um and for the end of the 60 seconds to see the results of the
11:06trade here
11:15okay so that trick was in the money all right i'm gonna pause the video and look for one last
11:20setup
11:22okay okay so i'm on the usd jpy and i'm gonna go ahead and take a buy trade here
11:31and the reason i took the buy trade is i waited for the cross of the vortex line here the
11:37green vortex
11:38crossed over the red vortex line in the upper direction uh in addition to that we're seeing
11:45uh the slope of the sma lines uh sloping upwards here uh suggesting a uh a bullish momentum a continued
11:58bullish push to the upside at this price level here that i took the trade at actually i got a
12:05good entry
12:06here on this trade uh the price set are pretty much retraced and the bullish reversal began right at the
12:15time i took the trade the the buy trade or the put uh the call trade here
12:29okay so that trade was in the money if you like the video please give it a thumbs up
12:35subscribe to my channel share the video with your friends and colleagues i have a link to the trading
12:40platform in the video comments or the video description or the channel bio i've only been risking one percent
12:48of my capital these are fast 60 second trades you need to have a about a 70 percent win rate
12:57in order to
12:58grow your account because with this type of trading if you lose the trade you lose the whole amount but
13:06if
13:06you win the trade you win a percentage of the rate of return whatever that asset is paying out so
13:14in general
13:14you need to have at least a 67 to 70 percent win rate in order to grow your account thank
13:23you for
13:23for watching and i'll see you in the next video gush schmidt
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