00:01in this video i'm going to be trading stock binary options utilizing fractal chaos bands
00:09the 20 period simple moving average and the 50 period simple moving average gush schmidt here
00:17and i'm back again with a new trading video so today i'm on the pocket option platform
00:23and like i mentioned i will be trading stocks on the platform here so if we click on our icon
00:32button
00:33here uh the section pocket option has various assets available trade currencies cryptocurrencies
00:41commodities stocks and indices so i'll be focusing on stocks here so what i did is you click on the
00:48stock icon and scroll and i select all the regular stocks not the otc stocks i'm going to be trading
00:57regular stocks on the platform here and when you select those stocks they appear here at the top of
01:05the chart and i'm going to be utilizing two indicators the first indicator is the fractal
01:15chaos band line here and i have the period set to two and in the style settings i've changed the
01:25background color to white so we can go ahead and save that to find the indicator here uh it's you
01:35click
01:35on the indicator icon here and you click on fractal chaos bands and also i'll be using two moving averages
01:45so you click this icon here twice for the two moving averages uh for the fractal in the fact the
01:53the fractal chaos band line here we have these green lines and the red lines the green line represents
02:00dynamic levels of resistance while the red lines represent dynamic levels of support and these lines
02:08are levels are constantly changing over time okay so for my moving average the first moving average
02:17i have is the 50 period 50 sma here so you set the period to 50 simple moving average and
02:27in the style settings
02:28i have the color set to green and the line width set to two pixels so we go ahead and
02:33save that and this is this
02:34green line here and for the second moving average i have the period set to 20 sma for simple moving
02:44average
02:44and in the style settings i have the color of the line set to blue line with two pixels so
02:51we go ahead
02:51and save that okay now for my candlestick charts i have the candle set to one minute regular japanese candles
03:00here m1 and for my trade timer i have my trade set to five minutes or m5 so i'll be
03:10looking at these one
03:12minute candles while taking five minute trades okay so what i'm going to do now is i'm going to pause
03:19the
03:19video and look for some stock options stock binary options setups okay so i'm on cisco and i just took
03:30a buy
03:30trade and the reason why i took the buy trade here is uh first of all the this candle here
03:39closes above
03:40this upper boundary of the fractal chaos band line here i didn't take the trade here uh we have a
03:50boundary
03:50here but there's another upcoming boundary here so we needed to watch that so i waited for the this candle
03:59to close above this upper boundary which suggests a uh bullish breakout to the upside here uh secondly
04:07we have the 20 sma the blue 20 sma line sloping upwards as well as the 50 green sma line
04:16sloping in an
04:17upward direction which suggests also a bullish trend here so i have all three of these confluences the
04:24breakout here of this candle above the uh upper boundary of the fractal chaos band line as well as
04:31the the positive sloping 20 and 50 sma line so what i'm going to do is i'm going to pause
04:38the video and
04:38wait till about 30 seconds left in the trade right now the price is retracing but i'm anticipating this
04:46price will continue to push upward uh over the next five minutes so i'm going to pause the video with
04:52about
04:5230 seconds left in the trade and look for the results
04:58okay so we have about 30 seconds left in the cisco trade here and as predicted the even though we
05:08had
05:08a retracement here from the entry price the green line represents uh the entry price here the price
05:17pushed upward in a bullish momentum here uh above our entry and so yeah we won that trade all right
05:26so to recap i waited for the candle to close above this upper boundary of the fractal chaos band line
05:33uh
05:36looked at the slope of the the two sma lines of the 20 and the 50 and took the buy
05:42trade okay
05:42so i'm gonna pause the video and look for the next setup
05:48okay so i just took a trade on microsoft i took a buy trade and the reason why i took
05:56the buy trade here is
05:59this get this green candle closes above the upper boundary of the fractal chaos band line
06:10secondly
06:11secondly i have the 20 sma here the blue 20 sma sloping upwards suggesting a continued bullish trend
06:21same with the 50 sma the green 50 sma line is is showing a upwardly sloping line here
06:32but before i took the trade uh i wanted to see the behavior of the next candle here
06:40and the next candle shows a slightly bullish uh candle here if you notice and so i took the trade
06:47right around this level here it slightly retraced but i'm anticipating uh continued bullish momentum to
06:57the upside over the next five minutes so i'm gonna pause the video and wait till about 30 seconds left
07:04in
07:04the trade so we can see the the results of this trade at the end of five minutes
07:16okay so to recap this trade uh i took the trade waited for this candle here to close above this
07:25previous
07:26upper boundary here there's a new boundary that's developed here but we took the trade here uh waited
07:33for this candle here just to see the movement of this candles noticed there was a bullish candle here
07:39so i went ahead and took the trade we just have a few uh seconds left in this trade uh
07:47but the the main
07:50idea is that we wait for the candle to close
07:55above the upper boundary of the franco chaos band line which which represents a level of
08:01uh resistance so once it broke that resistance
08:07uh this suggested a bullish uh push to the upside and so that trade was in the money
08:13all right so i'm going to pause the video and look for the next setup
08:18okay so i'm on johnson and johnson stock and i just took a buy trade here
08:24and similarly to the previous trade the reason why i took the buy trade is
08:29you see this get this long green candle here it closes above the upper boundary of the fractal chaos
08:37band line here which suggests a bullish breakout to the upside but even though the candle closed above
08:47the upper boundary i watched the behavior of the next candle and if you see here this candle is also
08:55green
08:56so this confirms uh the bullish momentum the bullish breakout so i went ahead and took the trade
09:06uh on this candle here at this level here you see this green level here
09:10that's my entry price and once i saw these green candles developing here uh i knew that there would be
09:20a
09:20bullish uh breakout to the upside here so what i'm going to do is i'm going to pause the video
09:26uh and wait till about 30 seconds left in the trade to come back and check the results of the
09:31trade
09:34also i forgot to mention that if we look here the uh we have the blue 20 sma line sloping
09:43upwards
09:44and the also the 50 sma line is sloping upwards so the three confluences here with the
09:51the breakout over the fractal chaos band line and the positively sloping sma lines
10:01uh is what made me determine to take the trade all right so i'm gonna wait till about 30 seconds
10:07left
10:08come back and check the results okay so i'm on back on the johnson and johnson and uh
10:15that trade resulted in a loss okay so despite our best efforts uh in identifying
10:23lining up all the indicators uh sometimes uh we we do incur losses so not a problem what i'll do
10:31is uh
10:32we're gonna pause the video and look for another setup
10:40okay so i'm on mcdonald's and i just took a buy trade and the rationale for taking the buy trade
10:48is
10:50the even all right so we have this candle doesn't close this candle closes above this upper boundary
10:56here but we also have to be aware of this boundary over here which represents a level of uh resistance
11:05here so this candle here closed above this upper boundary here this green candle here
11:16but then there was a sharp retracement back down so i didn't take the trade then
11:22so this candle closes above uh this boundary here but we have this boundary to contend with so
11:34noticed the uh this big green candle here closed above this upper boundary here
11:43so this suggests a bullish uh breakout to the upside i waited for this candle to close uh saw this
11:51candle
11:51developing here and it pushed past this boundary here so i had i went ahead and took the buy trade
11:58in addition to that if you see the 20 sma line sloping upwards along with the 50 sma beginning to
12:07uh
12:08sharply slope upward here uh so what we're going to do is i'm going to pause the video and wait
12:16for the
12:18expiration of this trade
12:22and see the results
12:28okay so i'm back at mcdonald's uh waiting for the results of this trade although there was a
12:35retracement i took the entry right here where the green line is although there was a retracement
12:41uh there was a pushback upward uh there was a pushback upward above the above the entry price here
12:53okay so we won that trade okay
13:01we caught the entry at the right price uh even though the retracement came
13:07uh it pushed further upward here resulting in a win all right so i'm going to pause the video
13:12and look for the next set okay so i'm on netflix and i just took a buy trade
13:19and the reason why i took the buy trade is first of all we see the 20 sma lines uh
13:26blue 20 sma
13:28sloping upwards followed by the 50 sma also sloping in an upward direction
13:35both suggesting a bullish trend a continued bullish trend
13:44but more importantly here this green candle closed above the upper boundary of the fractal chaos
13:50band line here so this suggests a bullish breakout to the upside over the next five minutes so we're
13:58going to monitor this trade and wait for it to play out uh for the next five minutes
14:05but in the meanwhile i'm going to pause the video and wait till about 30 seconds left in the trade
14:12so we can get the results of the trade
14:19okay so we have a few seconds left in the trade the netflix trade here so let's monitor
14:29the results in wait for the expiration
14:36okay so that trade was in the money uh to recap here i waited for the this uh green candle
14:44to close
14:44above the upper boundary of the fractal chaos band line which suggests a bullish breakout to the upside
14:54also the 20 and the 50 sma lines are showing sharp a sharp upward sloping trend lines suggesting a bullish
15:04trade a bullish momentum as well
15:08so i use all three conferences to take the buy trade okay so i'm going to pause the video
15:14and look for the next setup okay so i'm on tesla and i just took a cell trade
15:22on tesla here i took a a cell option for five minutes and the reason why i did this is
15:32this candle this strong bearish candle here close below this lower boundary
15:41of the fractal chaos band line also beginning to see a downward sloping green 50 sma line here
15:50and the 20 sma is showing a bearish uh trend line here to the downside so these three confluences
16:02suggest a a bearish trend over the next five minutes in the price of tesla
16:12okay so we're gonna monitor this trade and i'll come back to this trade at the end of five minutes
16:19to see the checking on the results of the trade okay so we have about 30 seconds left in this
16:30trade
16:31on tesla and as predicted the price continued to push downward in the bearish direction
16:42uh to recap yeah we see the both the 50 and the 20 sma line sloping downwards and then we
16:49uh entered the
16:51trade when the candle closed below the this boundary this lower boundary of the fractal chaos band line
16:58so that trade was in the money okay so i'm gonna end the trading session here i think we got
17:04four out of
17:05five trades we did get a loss uh the whole idea is that we collect more winners than losers uh
17:13if you
17:13like the video please give it a a thumbs up comment if you have any questions about the strategy subscribe
17:20to my
17:21channel if you're interested in keeping up to date with my uh of my with my latest trading strategies
17:27i have a link to the pocket option platform if you're interested in uh trading uh it's in the video
17:34comments and or in the channel description i suggest you start with a demo account first
17:43uh also i wanted to make note that uh i was risking about five percent of my capital uh on
17:51each trade uh
17:53you don't want to risk large percentages of your capital because sometimes you will incur losses
17:58so you don't want to incur huge losses the whole idea is that you get more winners than losers
18:05thereby growing your account slowly but surely and consistently okay
18:12gushman thank you for watching fractal chaos bands 20 simple moving average 50 simple moving
18:19average trading strategy and i'll see you in the next video
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