00:01good Schmidt and I'm back again with another trading video so today I'm on the pocket option
00:07platform and I'm going to be trading stock OTCs utilizing two indicators the two indicators are
00:17the parabolic SAR here which you see the dots and the ADX indicator which you see these two lines
00:25here so I'm going to be trading stock OTCs being that it's the weekend only OTCs are available on
00:34the weekends OTC assets on the pocket option platform so if we click on our assets icon here
00:41pocket option has various assets available to trade they have currencies cryptocurrencies
00:46commodities stocks and indices I'm going to be focusing on the OTC assets here so I've already
00:54checked them off so that way they can appear at the top of the chart here and I can quickly
00:59go through and analyze each of each of these OTC assets okay so for my indicators like I mentioned
01:09the two indicators I'm going to be using are the parabolic SAR and the ADX indicators right so what
01:21I'm going to do is I'm going to wait till the end of this trading session and give you all
01:27the settings
01:27of both of these indicators here for my candlestick chart I'm going to be using one minute these are
01:37one minute Japanese candles here and for my trade time I'm going to be taking two minute trades so taking
01:45fast two minute turbo trades while looking at these one minute Japanese candles okay so what I'm going
01:51to do now is I'm going to pause a video and wait for a trade setup
02:00okay so I'm on Visa OTC and I just took the short and the reason I took the short first
02:07of all we're
02:08seeing a bearish price action happening in the price currently then we see the parabolic star dots
02:15begin to print above the candles here indicating a bearish momentum and then thirdly if you see here
02:23the ADX line the minus ADX line is diverging from the green plus DI line the minus red DI line
02:34and the plus
02:36green DI line are diverging so all these confuences suggest a continued bearish momentum to the downside over
02:45the next two minutes so let's monitor this trade and wait for the expiration at the end of
02:52the two minutes
03:00if you notice here I took the trade when there was an increase in the divergence you're looking for
03:06increase in divergence here the ADX lines here you see how this line separated there's a greater
03:12separation here that's when I took the trade so okay so that trade was in the money right all right
03:20so I'm
03:20going to pause the video and look for our next trade setup
03:26okay so I'm on Amazon OTC and I just took a short or a sell trade here at this level
03:33and the reason why
03:34I took the short like I mentioned previously you see the divergence of the ADX lines here we're seeing a
03:41growing divergence this is our first indicator here and then secondly the parabolic SAR dots are printing
03:48above the candles here so these two confuences along with the if you notice this price action here we have
03:56a bearish price action happening so all three of these confuences suggest a continued bearish momentum to the
04:03downside over the next two minutes so let's monitor this trade and wait for the expiration at the end of
04:12the two minutes
04:17all right when there's a divergence like this it tells you that the sellers are more in control here
04:25there is an increase in the growing number of sellers here when you when you notice this divergence I trade
04:31divergence different from what you may see in other videos so I'm looking for that
04:42that increased divergence and an increasing number of sellers coming into the market and so that's why
04:50it took short here at this level okay so we got another winner in the money all right so I'm
05:03going to pause the
05:04video and look for the next trade setup okay so I'm on Netflix OTC and I just took a short
05:13or sell trade here at this level and the reason I took the short is if you notice here we're
05:19seeing a growing divergence here of the minus DI line the red minus DI line and the plus green DI
05:28line on the ADX indicator
05:29then secondly we're seeing the parabolic star dots begin to print above the candles here suggesting a bearish reversal at
05:39this level and then we're seeing you know of a bearish price action here so all of these confuences suggest
05:49a continued bearish momentum to the downside in the price of Netflix over the next two minutes so let's see
05:59if we're going to see you
05:59Keep an eye on this trade and wait for the expiration at the end of two minutes.
06:47So that trade was also in the money.
06:51All right.
06:51So I'm going to pause the video and look for another setup.
06:56Okay, so I'm on Coinbase Global OTC, and I just took a short at this level.
07:03And the reason why I took the short is I saw this growing divergence of the ADX lines here, the
07:10minus DI line, and the plus green DI line here.
07:16In addition to that, we're seeing the parabolic SAR dots printing above the candles here.
07:22So, and then thirdly, there's a general bearish trend occurring here, which broke below this level of support here.
07:39So all of these confluences suggest a continued bearish push to the downside over the next two minutes.
07:47So let's monitor this trade and wait for the expiry.
07:51Like I said, once I find, I see that I spot that divergence here.
07:57You see how the red line here pushes above here in this direction, and it goes, it pushes against this
08:05ADX line, the green ADX line.
08:08So that's the trigger for me to go ahead and take the trade.
08:13So let's wait for the expiration at the end of the two minutes.
08:28Okay, so that trade was in the money.
08:31All right, so I'm going to end this session here.
08:35I'm going to go ahead now and show you the settings for my indicators here.
08:42So for the parabolic SAR, I've had, I set the acceleration to 0.025, maximum acceleration to 0.25, and
08:51then the style settings here, I just increased the line width to two pixels green.
08:59And for the ADX indicator, the ADX smoothing is set, I set it to 14, and the DI length, I
09:08set it to seven, and in the style settings, I disabled the ADX line.
09:13I didn't, I don't use the ADX line to trade with the ADX indicator, and in the plus DI line,
09:20I increased the line width to three pixels, as well as the minus DI line, three pixels.
09:26And like I mentioned, the candlesticks are set to one minute, while the trade expiries are set to two minutes.
09:33Okay, so if you like the video, please give it a thumbs up, subscribe to my channel, share the video
09:38with your friends and your colleagues.
09:41I've also been risking about less than, you know, maybe two or three percent of my capital.
09:48It's part of good money management.
09:49You don't want to risk high percentages of your capital, because the whole idea is to increase your balance slowly,
09:56but surely risking high percentages of your capital can lead to huge losses, as well.
10:03There's a link to the trading platform in the video comments, or in the video description, or the channel bio.
10:12Once again, thank you for watching.
10:15ADX Parabolic SAR trading strategy, Gus Schmidt, and I'll see you in the next video.
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