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  • 6/24/2025
Trading with a combination of the 25, 20, and 5 simple moving averages SMAs alongside the Vortex Indicator offers a dynamic and layered approach to identifying trend strength, entry points, and reversals.

Open Account: http://pocketoptioncapital.com

The 25 SMA provides a longer-term view of the prevailing trend, helping traders determine the broader market direction. The 20 SMA, slightly shorter, acts as a medium-term confirmation line, while the 5 SMA reacts quickly to recent price movements, giving more immediate signals. When these three SMAs align — with the 5 above the 20 and the 20 above the 25 — it typically signals a strong uptrend. Conversely, a 5 less than 20 less than 25 structure suggests strong bearish momentum.

The Vortex Indicator (VI), which consists of two oscillating lines — VI+ and VI− — measures trend strength and potential shifts based on directional movement. When VI+ crosses above VI−, it signals bullish momentum, while a VI− crossover indicates bearish conditions. When used in conjunction with the SMAs, the Vortex Indicator can serve as a powerful confirmation tool. For instance, if the SMAs show an emerging uptrend and VI+ has just crossed above VI−, it may confirm a strong buy signal. Similarly, during bearish SMA alignment, a VI− crossover above VI+ adds confidence to a sell trade.

What makes this combination especially potent is the tiered sensitivity of the SMAs working with the volatility-sensitive nature of the Vortex Indicator. The 5 SMA allows for fast entries, the 20 and 25 SMAs offer trend confirmation and stability, and the Vortex Indicator ensures that the trader isn't blindly following moving averages without trend strength validation. This synergy helps traders avoid false breakouts and enter trades with higher conviction, particularly in trending markets where confirmation is key to avoiding whipsaws and maximizing potential profits.

Open Account: http://pocketoptioncapital.com

Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument.

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Learning
Transcript
00:00This is a totally new strategy.
00:11This is a totally new strategy. And its winning ratio is also very good. Today we have set $80 trade amount, so lets see today how much we can earn from this strategy. So first of all we will place some trades. And after that I will show you the settings of this strategy, so now lets see a good movement, so that we can place an entry.
00:33So I got a good chart here. All confirmations are complete here. Like the pink line has crossed the white and yellow lines in the downward direction here, and at the same time, the downtrend has also started here by forming red candles, and in the vortex indicator here, the green line has crossed the red line in the downward direction. So we have got a strong signal that the market will go down here.
00:59Before using this strategy you must look carefully at all the trades I have placed, because in every trade you will see something new which will be important while placing the trade.
01:13And great, here we placed 4 trades of $80, and all our entries won.
01:24So here also I got a good entry. Now you can see here that this time in the vortex indicator, the green line has crossed the red line in the upward direction, meaning that the vortex indicator has given a signal that the market will move in the upward direction.
01:39And here the pink line has crossed the yellow and white lines in the upward direction. So these two confirmations are very important to place a trade. And along with this, if you also pay attention to what directions are going on in the market, then you will get more benefit.
01:54Like here the market is in an uptrend. If the market is in an uptrend, do not place an entry in the downtrend direction. Because placing an entry in the direction against the market can be very risky.
02:15And that's great. Our second entry here also won.
02:25So here is a little different chart. Let's understand it carefully.
02:29Here the pink line has crossed the white and yellow lines in a downward direction. This is a good signal in a downward direction, but if you look at the vortex indicator.
02:38Here it has not formed a cross like the previous cross. The reason for this is that the market was moving sideways for some time and it was incapable of going down, but now the pink line has crossed both these lines, and at the same time the green line of the vortex indicator has crossed the red line and moved down. So now there is a high probability of the market going down.
03:00So till you win the trade, I will tell you a little about what you should pay attention to while placing an entry, most of all.
03:09There should not be much volatility in the market, and also if a huge shadow is forming on the chart.
03:15Then do not place the entry on that chart, and while placing the trade. Look back a little to see how the market has shown movement after getting the signal last time, because the same movement can happen this time also.
03:26And along with this pay attention to the support and resistance as well, so these are some things which should be kept in mind while placing the entry.
03:47So very good. Here the entry has won in a very good way. You can see that with this strategy we get very accurate signals. Your winning ratio can also increase a lot. You just need to practice it a little.
04:01So in the previous trade I told you that when there is an uptrend in the market, then do not place an entry in the downtrend direction, and when there is a downtrend in the market then do not place an entry in the upward direction.
04:14But here despite the downtrend I am placing an entry in the upward direction. And the reason for this is that here there is a greater possibility of the market going up, because here the pink line has given an upward signal by crossing the white and yellow lines in the upward direction.
04:30And along with that the vortex indicator has also provided a signal in the upward direction, and if you analyze a little more, you will find that the market has broken this trend line here, and it is possible that the downtrend may end and the uptrend may start now.
04:45That is why I will place only one entry here, so that if our prediction goes wrong, we can recover it in the next trade.
04:53In this strategy we have set the candle timing as 30 seconds and expiry timing as 2 minutes. It means after placing the entry, when 4 candles are made and finished then our entry will win.
05:04And this time is sufficient for this strategy. Because if we keep the expiry timing as 1 minute then it will be very less. And if we keep it more than 2 minutes then also the expiry time will be too much, due to this the chances of losing the entry can increase.
05:20We have got more winning ratio in 1 minute timing. So you should pay attention to this also.
05:25And that's great, our entry has one here too. The strategy works well. We just need to practice it a little in the demo account. And before using the strategy, pay attention to the market movement, the market should be calm and there should not be too much volatility in it.
05:43So now I will tell you a little about the settings of indicators, so that you can use it.
05:48So first of all you have to go to the indicators settings, and add the 3 time moving average, and also add the vortex indicator.
05:57Then go to the settings of the first moving average, and set the period to 25, and its color is yellow.
06:04Then go to the second moving average, and set the period to 20, and we have kept its color white.
06:10Then go to the settings of the third moving average, and then set the period to 5.
06:14And the color of this moving average is set to pink.
06:18And lastly go to the settings of the vortex indicator, and set the period settings to 14.
06:24And here our indicator settings are complete, candle timing here is 30 seconds, and chart pattern is heikinashi.
06:31And the best trade timing is 2 minutes.
06:34And now first of all you should practice this strategy in demo account, and only after that think about using it in real account.
06:41Find out.
06:44.

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