15 Best Trading Indicators on Pocket Option

Summary

This video explains various trading strategies using different technical indicators for quick trades, starting at 5 seconds. It covers a range of strategies including Fractal, Accelerator Oscillator, Zigzag, Awesome Oscillator, Moving Average, Stochastic Oscillator, ADX, RSI, Super Trend, Bollinger Bands, CCI, ROC, MACD, Momentum, and Aroon. The video guides viewers on setting up each indicator, recognizing key signals like crossovers, breakouts, and momentum shifts, and how to use them in combination for more accurate trades. These strategies aim to help traders capitalize on short-term market movements and improve decision-making.

Takeaways

• 😀 Fractal Trading Strategy: Based on the Fractal indicator, developed by Bill Williams, this strategy helps identify potential trend reversals using five candles, with the middle candle being the highest or lowest.
• 😀 Confirming Fractal Breakdowns: Open an uptrade or down trade based on the first candle's position relative to the middle fractal candle, ensuring confirmation of the fractal level breakdown.
• 😀 Accelerator Oscillator Strategy: Developed by Bill Williams, this strategy uses the Accelerator Oscillator (AO) to detect changes in price momentum. Green bars indicate bullish momentum, and red bars indicate bearish momentum.
• 😀 Zigzag Strategy: The Zigzag indicator is useful for tracking short-term price movements. Use settings like deviation 2, depth 1, and back step 1 for faster reactions, and combine with volume or oscillators for better accuracy.
• 😀 Awesome Oscillator Strategy: This strategy uses the Awesome Oscillator (AO) to identify market dynamics and trend reversals. Watch for crossovers of the zero line and combine with other indicators like Parabolic SAR or Bollinger Bands.
• 😀 Moving Average Strategy: Use two SMAs with different time frames to identify trade signals. A crossover of the fast SMA above the slow SMA signals an uptrade, and a crossover below signals a downtrade.
• 😀 Stochastic Oscillator Strategy: The Stochastic Oscillator helps identify overbought or oversold conditions. A crossover of the fast line above the slow line signals an uptrade, and vice versa for a downtrade.
• 😀 ADX Strategy: The Average Directional Index (ADX) helps determine the strength and direction of a trend. When ADX is above 25, the trend is considered strong enough to trade, using the +DI and -DI lines for direction.
• 😀 RSI Strategy: The Relative Strength Index (RSI) indicates overbought or oversold conditions. Values above 70 indicate overbought conditions (sell signal), and values below 30 indicate oversold conditions (buy signal).
• 😀 SuperTrend Strategy: Based on the SuperTrend indicator, this strategy uses price crossings above or below the SuperTrend line to signal up or down trades. Combine with other indicators like Moving Average or ADX for better results.

Q & A

What is the Fractal trading strategy based on?

The Fractal trading strategy is based on the Fractal indicator developed by Bill Williams, which helps identify potential trend reversals on the chart by analyzing five candles or two periods. The middle candle is the highest or lowest, with lower highs or higher lows on either side.

How should the Fractal indicator be set up for quick trades?

For quick trades, set the Fractal indicator period to 5. Look for confirmation when the first candle closes above the middle fractal candle for an uptrade, or below it for a downtrade. It's recommended to use the Fractal indicator alongside other indicators like Moving Averages or RSI for increased accuracy.

What does the Accelerator Oscillator (AO) help identify?

The Accelerator Oscillator (AO) helps identify changes in price momentum and potential trend reversals by displaying green bars (indicating acceleration) and red bars (indicating deceleration) on its histogram.

What are the key settings for the Accelerator Oscillator for quick trades?

Set the short period to 5, the long period to 34, and the AC SMA period to 5. Open an uptrade when the histogram bar changes from red to green, indicating bullish momentum, and open a downtrade when it changes from green to red, indicating bearish momentum.

How does the Zigzag trading strategy help in quick trades?

The Zigzag strategy helps identify short-term price movements, especially in volatile markets. It tracks minor but important price changes, and the indicator reacts faster to these movements when set with a deviation of 2, depth of 1, and a backstep of 1.

When should a trader open an uptrade using the Zigzag indicator?

A trader should open an uptrade when the Zigzag indicator forms a new low point and the line starts moving upwards, indicating a potential price reversal in the upward direction.

What is the key concept behind the Awesome Oscillator (AO) strategy?

The Awesome Oscillator (AO) strategy is based on the difference between the 34-period and 5-period Simple Moving Averages (SMA). The AO helps identify changes in market dynamics and potential trend reversals, with signals generated when the AO crosses the zero line.

What are the key settings for the Awesome Oscillator for quick trades?

Set the AO with default periods of 5 and 34. Open an uptrade when the AO crosses the zero line from bottom to top, and a downtrade when it crosses from top to bottom. Using additional indicators like Parabolic SAR or Bollinger Bands can improve the accuracy of the signals.

What is the purpose of the Moving Average (SMA) strategy in quick trades?

The Moving Average (SMA) strategy helps determine the overall market direction by using two SMA lines with different time frames. A fast line reflects short-term price changes, while a slow line shows the overall trend. Crossovers between these two lines can signal potential trades.

How should the Stochastic Oscillator be set up for quick trades?

For quick trades, set the Stochastic Oscillator with a percent K of 5, percent D of 3, and a smoothing period of 3. Watch for crossovers between the fast and slow lines—an uptrade is signaled when the fast line crosses the slow line from bottom to top, and a downtrade when it crosses from top to bottom.