Let’s be real, Volatility 75 Index trading is not easybut the chance of making huge profits is there is you have a good strategy.
What if I told you that one of the most powerful strategy for Volatility 75 Index is very easy to use and its also profitable
What if it was built on just two simple indicators and one easy-to-spot pattern?
That’s exactly what you are reading today.
I’m going to walk you through a strategy so simple, you’ll wonder why everyone makes trading seem so hard.
The 2 Required Indicators and Pattern For This Volatility 75 Index Strategy
Every great strategy needs a solid foundation. Ours uses three simple components:
- The 21 EMA (Exponential Moving Average): It reacts quickly to recent price changes. On your chart, we’ll imagine this as the blue line.
- The 50 EMA (Exponential Moving Average): It looks at the bigger picture and reacts more slowly to price moves. This will be our red line.
- A Simple Candlestick Close: Just wait for a candlestick pattern to form at a key level. This is our green light for entry.
Together, these two lines will tell us when to trade, and the candlestick pattern will tell us exactly where to jump in.
Step 1: Spotting The Volatility 75 Index Trend
Volatility 75 Index trends a lot and the best strategies come from trending markets
The first rule of this strategy is to only trade when the market is showing a strong, clear trend.
How do we know that? We look at the relationship between our two indocators, the 21 EMA and the 50 EMA.
- For an UPTREND: The hyper-active indicator (21 EMA) must be above the steady friend (50 EMA). The blue line is above the red line. This signals strong buying momentum. Our only job here is to look for opportunities to BUY.
- For a DOWNTREND: The hyperactive friend (21 EMA) must be below the steady friend (50 EMA). The blue line is below the red line. This signals strong selling momentum. Our only job here is to look for opportunities to SELL.
But here’s the secret sauce: there needs to be a clear gap between the two lines.
If they are squished together or tangled up, it means the market is “choppy” or ranging. In those moments, we do nothing.
We sit on our hands and wait for the trend to reassert itself.
Patience is a strategy too!
Step 2: Wait for the Pullback (The Golden Entry Zone)
The market doesn’t just go up in a straight line.
Even in a powerful trend, it will occasionally take a breather and “pull back” against the main direction.
In Volatility 75 Index, these pullbacks might be huge but its a bit easier to spot when they end
We wait for the price to pull back into the “zone” between our two EMAs.
- In an Uptrend: Price dips down from the highs into the space between the blue (21 EMA) and red (50 EMA) lines.
- In a Downtrend: Price rallies up from the lows into that same space between the two lines.
This pullback is what gives us a better, safer price to enter the trend, rather than chasing the market when it’s already miles away.
Step 3: The Entry Signal & Managing Your Trade
This is where we stop watching and start acting. We don’t enter the trade the second price touches the zone. We need confirmation.
- For a BUY Signal: In an uptrend, after the price pulls back into the zone, we wait for a bullish candle to close above the 21 EMA (the blue line). The moment it closes, we enter a BUY position.
- For a SELL Signal: In a downtrend, after the price pulls back into the zone, we wait for a candle to close below the 21 EMA (the blue line). The moment it closes, we enter a SELL position.
Managing Your Risk:
- Stop-Loss: Place your stop-loss just below the most recent low (for a buy) or above the most recent high (for a sell) that was formed during the pullback.
- Take-Profit: A great starting point is to aim for a risk-to-reward ratio of at least 1:1.5 or 1:2. This means if you risk $50 on the trade, you aim to make $75 or $100. This ensures that even if you’re only right half the time, you can still be profitable.
Let’s Be Real: You Won’t Win Every Time
Trading isn’t about magic; it’s about probability.
Look, sometimes you’ll get that perfect setup, enter the trade, and get stopped out by a random wick on a candle. It happens to everyone!
A losing trade is just the cost of doing business.
The goal of this strategy is to put the odds firmly in your favor over a series of trades, not to win every single one.
See? It doesn’t have to be complicated.
By combining the trend-filtering power of the 21 and 50 EMAs with the precise entry signal of a candle close, you have a robust framework to navigate the markets.
Understanding the theory is the first crucial step. But the real edge comes from having the right tools to spot these setups quickly, accurately, and without stress.
If you’re ready to take the next step and practice this strategy on your own charts, we’ve got your back.
Supercharge your trading journey by visiting our Trading Tools page to find the indicators, platforms, and resources we recommend to build this strategy and start practicing in a risk-free environment.
Remember, every expert was once a beginner.
Happy trading