00:00In this video, I'm going to be trading reversals around levels of support and resistance, utilizing the Vortex Indicator, but
00:15mostly price action.
00:17This is strictly a price action strategy. Even though I have some indicators set up, I have five moving averages,
00:26my five stack SMA and my Vortex Indicator, I'm going to be trading strictly price action at levels of support
00:35and resistance.
00:36And I'm on the pocket option platform here, and I have my currency assets set up on the chart here.
00:45I'm going to be strictly trading regular currency pairs, not the OTCs or the synthetics.
00:52So I have the chart set up here. So I have the 100 SMA, which is the white, the blue
01:01is the 50, the green is the 20 period SMA, the turquoise is the 9 period, and the red is
01:10the 3 period.
01:11However, like I mentioned, I'm just looking at these as a reference, these SMAs as a reference, and I also
01:18have my Vortex Indicator here.
01:20It's set to period of three here, strictly as a reference.
01:27But what I'm looking for is areas of support and resistance.
01:31Like, for instance, right here, we're looking at, we're on the Swiss franc JPY chart, and this is a strong
01:39level of resistance here.
01:42It's touched several times here.
01:45By the way, these are 15 second candles.
01:47I'm going to be taking one minute trades here.
01:51These are 15 second candles.
01:54So I'm going to be taking fast turbo trades.
01:57So I'm waiting for this price to hit at the top level here.
02:03And then I'm going to be taking a reversal trade in the opposite direction here.
02:12Okay.
02:13All right.
02:14You see, I took a short here and it pushed up further.
02:17So I'm going to go ahead and take another short here.
02:21So I took two shorts here.
02:24If it continues to push up, I'm going to go ahead and take another short again.
02:29But, all right.
02:31So it seems like it's kind of pushing downward.
02:34So let's hold steady at these two trades.
02:49Like I said, I waited for the price to hit this area of resistance here.
02:57And I'm anticipating a bearish push to the downside.
03:12Okay.
03:13So the first trade came in the money, waiting for that second trade to close.
03:27So let's see if we can find another currency pair at either a level of support or a level of
03:36resistance.
03:37As a matter of fact, let's see what's happening here.
03:46Let's look for a little bit better price action here.
03:50This currency is really trading within a sharp range here.
03:56All right.
03:57So I'm on the Euro-US dollar here.
04:01And it's trading within this level of support and this level of resistance.
04:08So basically, how the strategy works is I wait for the candle to either hit this top level of resistance
04:18or this bottom level of support and then take the reversal trade here.
04:25All right.
04:26All right.
04:26So it takes a little bit of patience and precision.
04:33So before I take the trade, I want it to push either up to this level here, around this level,
04:42or it may have to push down to the bottom level here.
04:57So let's take a short here on the Euro-USD.
05:03I waited for the price to hit this level of resistance here before I went ahead and took the short
05:12here, as you can see.
05:14So let's monitor.
05:16Okay.
05:17So it's pushing against.
05:19Oh, okay.
05:20I was about to take another short, but let's take another short here.
05:36All right.
05:37So I took a couple more shorts here at this level.
05:43All right.
05:44In case the trade.
05:48All right.
05:49So I took these two shorts because I thought maybe we might have lost that trade, but we won that
05:57trade.
05:57You see that?
05:58So we won the trade, and I have two more shorts up here at this level.
06:05So let's wait for this trade.
06:13Now, this strategy works during consolidating markets.
06:19Obviously, these are 15-second candles.
06:22There's not much price action.
06:24So this works better during the consolidated market when there's no trend.
06:31All right.
06:31So we won those trades, right?
06:33All right.
06:34So let me pause the video and see if we can find another setup.
06:44All right.
06:45So I'm back on the Euro-US dollar, and I just took another short here at this level, this area
06:56of resistance here.
07:01So let's watch this trade.
07:05If it continues to push upward, I'm going to continue to take shorts.
07:09Let's see what happens here.
07:12Okay.
07:15So I just took another short.
07:20There's, even though we've passed this level of resistance here, I'm anticipating the price is going to still push downward
07:33here and reverse.
07:41All right.
07:42So we lost that trade.
07:43Let's go ahead and take another sell trade.
07:47Here at this level.
08:01That way we can recover the loss of the previous trade.
08:04This is sort of Martingale, combination of Martingale and price action happening here.
08:14Okay.
08:17I'm going to take three trades here because we lost that trade.
08:25We lost two trades.
08:28So I'm anticipating a reversal from these levels here.
08:34So that way we can recover the loss of those two previous trades and gain some additional profit.
08:44We lost three trades.
08:45So that way.
09:14I'm not timing.
09:14We lost two trades here.
09:14I'm Post.
09:16okay so okay so we close all the other trades in the money here balance is slowly growing even
09:25though we we generated a couple of losses we were able to recover the losses all right
09:31um being that this currency pair pushed outside these let this level of support let's look for
09:38uh currency pair with a a stronger level of support either support or resistance okay so
09:47i just took a a buy trade a reversal trade here on the great british pound rc dollar
09:55i saw this strong candle wick here rejection at this level here
10:04so this tells me there was another rejection here at the same level here so i was anticipating a
10:13reversal at this point here so let's monitor this trade and wait for the expiration of this trade
10:23strictly price action
10:26trading here
10:32see all these rejections at this level this candle rejected this candle this candle
10:41uh okay so that trade was in the money all right let's uh pause the video see if we can
10:47find another
10:48setup for reversal okay so i'm on the great british pound swiss franc and i waited for the candle to
10:59hit this
11:00level of uh resistance here you can see there's a strong area of resistance resistance at this point here
11:10so i took a reversal trade a sell trade here anticipating a a bearish reversal here at this level over
11:21the next 60
11:21seconds let's monitor this trade and wait for the expiration
11:48okay great so that trade was in the money here all right so i'm gonna end the trading session here
11:55we
11:55were able to grow our balance nicely here even though we had a few couple of losses on that previous
12:01trade
12:03uh we were able to pinpoint the reversal areas based on the levels of support and resistance
12:11uh if you like the trading strategy give please give me a thumbs up subscribe to my channel share the
12:17video video with your friends and your colleagues i've only been risking just about one to two percent
12:24of my capital as part of good money management as you can tell sometimes the trades do incur
12:29losses so you don't want to take big trades because those can result in huge losses the idea is
12:36to grow our account slowly but surely uh thank you for watching and i'll see you in the next video
12:42gus schmidt price action reversal trading strategy
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