Home Deriv VOLATILITY 25 INDEX 2024





(VOLATILITY ZONES)  Support and resistance are levels that have been tested by the market several times , bouncing at those levels and leaving rejections or pin bars, the market tend to test this levels and we only consider a level support or resistance when it has been tested more than once, we call these levels VOLATILITY ZONES. The market either bounce at this levels or break them and give us a breakout. When trading VIX 75 use this levels to execute your orders, we wait for the market to give us what we expect at this levels and wait for the market to decide what to do, after the market has took a decision whether it bounces or breakout we dive in and move along with the trend. WE WAIT FOR A BREAKOUT, RETEST AND A CONTINUATION H1 CANDLESTICK  Let me break that down. When the market is at resistance level or about to hit resistance we wait for it to give us a breakout, a retest back to that zone and a (GREEN) bullish candlestick, turn resistance into support then we buy when we see a (GREEN) bullish candle.. AND WE WAIT FOR A GREEN REJECTION CANDLESTICK, BOUNCE AND A RED CANDLESTICK WITH A SMALL REJECTION.  Again when the market is at resistance we wait for it to bounce, give us a (GREEN) bullish H1 rejection candlestick, we wait for that candlestick to close as a rejection, WE WAIT FOR IT TO CLOSE, we then wait for the next hour candlestick to also give us a rejection and turn RED then we sell, we sell only when we see a RED candlestick following a GREEN rejection candlestick at resistance APPLY THE SAME SET OF RULES AT SUPPORT LEVEL!! REFER TO THE IMAGES BELOW TO SEE THESE SETUPS:


  Trend line’s represent S & R levels, we also use this lines to spot the very same breakouts, retests and rejections along with the buy and sell rules that I explained in the previous section. Draw your trend line only when you have 2 or more bounces at your trend line,refer to the pictures below to learn how to draw trend line’s


(VERY IMPORTANT)  Rejections are those candlesticks that close with a wick, we use this candlesticks to anticipate the buying and selling power momentum. REJECTIONS DURING UPTREND OR A BULLISH MOVEMENT  During an up trend we wait for the market to hit our resistance then reverse. We use rejections to confirm that buyers are now pulling out and sellers are preparing to SELL, when the market give us green rejection, or rejections at resistance we wait for the market to give us a Red candlestick then we SELL, remember I said VIX usually give us a Green rejection and the candle that shift the zone usually go up a little and then go down,it gives us a rejection also then turn Red and we SELL. REJECTIONS DURING A DOWN TREND OR A BEARISH MOVEMENT During a down trend we wait for the market to hit our support and reverse. We use rejections to confirm that sellers are now pulling out and buyers are preparing to BUY. When the market give us a Red rejection , or rejections at support level we wait for the market to give us a Green candlestick then we BUY. REFER TO THE PICTURES BELOW:


Breakouts happen at support and resistance levels. We take advantage of breakouts to anticipate price continuation, a breakout should be clear, wait for the market to break the level, retest back to that level then continue along with the trend after a candlestick that shift the zone has appeared. MASTERING BREAKOUT AT RESISTANCE LEVEL  When the market break resistance you wait for the market to retest back to that level and bounce, then give you a Green candlestick that shift the zone and turn resistance into support, then you BUY. MASTERING BREAKOUTS AT SUPPORT LEVEL  When the market break support you wait for the market to retest back to that level and bounce, then give you a Red candlestick that shift the zone and turn support into resistance, then you SELL. Keep in mind that the market can break a level then come back in the zone, we call that a fake breakout, it can happen on any chart, always execute entries only when the market gives you what you expect from it, a clear breakout followed by a retest then a candlestick that shift the zone, then you execute your orders. REFER TO THE PICTURES BELOW:


 Retests,also referred to as up and down swings, those small upward movements during a down trend, and those small downward movements during an up trend, are very important and can make trading easy for you. After a reversal at major support or resistance we move along with the trend using retests to execute more positions. During a down trend we sell after a small upward movement, swing. During an up trend we buy after a small downward movement, swing. REFER TO THE PICTURES BELOW:


Fractals are the small arrows pointing up and down at rejecting candlesticks, fractals are the only indicators you can use to add to your confirmations, I personally found comfort when I started trading VIX with fractals, I use them to hold my trades on H1 time frame. Keep in mind that in don’t use fractals for entries because we use rejections along with support and resistance for entries, we use fractals to anticipate how long we can hold trades. When the market gives you a fractal at support level after you execute your BUY orders, you wait for the market to give you a reversal and another fractal at resistance, then you can close your BUY positions. Use fractals only during a trend, not during a consolidation, remember this is VIX strategy, I created this strategy according to how VIX behave, use fractals only to hold your trades not for entries, indicators will always be lagging.  REFER TO PICTURES BELOW:


 We use H1 time frame for daily trend decisions, when we scalp VIX we use H1 as our pillar. Here are some great H1 time frame tips: Usually the market moves up and down with maximum 7 H1 time frame candlesticks then reverse, count your H1 time frame candlesticks, most of the time the market reverse or retest after 4,5 or 6 H1 candlesticks, 7 is maximum,after 4, 5 or 6 H1 candlesticks at support or resistance level expect a reversal or retest in H1 time frame. This is very accurate, that’s how VIX behave. REFER TO THE PICTURES BELOW:


We use M15 and M5 for Sniper entries, I use this time frames to master sniper entries. When the market is at support or resistance on our pillar H1 time frame, I wait for the market to reject at those zones, I then use M15 and M5 to enter my trades. These time frames react before bigger time frames, when I see that the market is at support in H1 time frame I wait for the current H1 candle to reject,even before it close I go to M15 and M5, they will show a Green candle even before H1 candle close, while it is still rejecting. I use these time frames to smell a reversal even before the H1 time frame show us a reversal, when H1 is forming a rejection at support, M15 or M5 is showing a W formation already, which is a reversal pattern, I then BUY when the market gives me a W, rejections and a Green candlestick in M15 or M5. RFER TO PICTURES BELOW:


 Keep in mind that VIX is very volatile, it’s a volatility index, we scalp and hold it using the SE Strategy, I use H4 time frame for daily OVERALLBIAS, if H4 time frame shows me that the market today is going down, I look for more sell orders in H1 , I look to hold my sell orders for the day.  Every time when you login to your platform go to H1 our pillar, draw your support and resistance and trend lines, check whether the market is bullish or bearish.  If the market is bullish count the number of H1 candlesticks the market went up with, wait for the market to approach resistance,to give you a green rejection candlestick, and as it is rejecting go to M15 and M5 to look for am M formation, when you see that formation and when you see a Red candle in M15 after several rejections you sell.  you can also wait for the H1 candle to close as a green rejection candlestick, then wait for the following candle to also give you a rejection and when it turns Red you sell. For safe entries Wait for the H1 candlestick to close as a rejection then wait for the following candle to change colour and shift the zone then execute your entries.  While holding your sell orders, the market will retest, check the retest in H1 and usually the market will retest with 2 or 3 H1 candles, after that retest you sell again, after 4,5 or 6 bearish candles you know that the market will reverse any time soon, so you take your profit, then wait for the market to approach support.  When the market is at support you wait for it to give you a Red H1 rejection candlestick, then a Green rejection candlestick and buy when you see green after 4,5, or 6 Red candlesticks, remember maximum is 7 H1 candlesticks. When the market is consolidating we make more money as a range in VIX is very exiting to scalp. Most of the times during a range VIX go up and down with 2 to 3 candlesticks then bounce and reverse, in M15 that’s 8 to 12 candlesticks, use this 2 to 3 candlesticks rule when you trade VIX during a ranging market.  RISK MANAGEMENT TIPS: The best risk management plan to follow is your own risk management plan. I personally use the following risk management plan: For any amount under $100 I use 0.01 lot and execute 1 order I withdraw 50% of my initial investment after I make $150 or $150+ I withdraw 100% of my initial investment after the first profits, after I make $200 or $200+, it depends on whether I close my first trade with 50 or 100% profit.   I keep on withdrawing to my wallet after I make 50% or 100% of my initial investment, I don’t have a risk management table to follow, after making enough money according to how much I can make from a trade I close and withdraw. When you have enough capital open as many accounts as you want and do the same process in all of them, trade make profit and withdraw when you satisfied with your profit, I can teach you how to trade but I can’t teach you how to handle your money. Manage risk according to your risk reward ratio and risk what you can afford to lose.  Create your own risk management plan and stick to it. #giantfx #Revenuepathway.com


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