Let me tell you, jumping into trading without a solid plan is a rookie move. If you really want to boost those profits, you’ve got to have a strategy. To truly succeed over the long haul and get a grasp on the markets, mastering daily charts is essential.
Now, let’s chat about the Thomas strategy. This approach was developed back in 2017 by a group of trading experts. What’s cool about it? It’s got a straightforward vibe since it only uses one indicator—the DeMarker. This tool gauges demand by comparing the most recent highs and lows with the prices from the previous period, aiming to predict where the market's heading. Originally, this strategy had a solid 70% chance of success, but after some adjustments, they boosted it to 95%. For those interested in enhancing their trading knowledge, exploring the innovative trading strategies with Pocket Option broker platform could provide valuable insights.
More About the Strategy
As I mentioned, the Thomas strategy is pretty simple: pull up the DeMarker on your candlestick chart and take action when the oversold and overbought levels intersect. The indicator provides clear signals that are easy to read.
To improve our chances, they paired the DeMarker with the EMA. You can grab both of these tools on the Pocket Option trading platform.
How to set up the indicators?
Ready to get started? Set your indicators for trading options using the Thomas strategy. Use a Japanese candlestick chart set to 5 minutes or longer—going shorter just creates too much market noise. Keep the DeMarker on its default settings (period 14) and set the EMA to a period of 100 (“exponential” EMA).
How to trade contracts using the Thomas strategy?
Let’s get trading. Even with that additional indicator, it’s still pretty easy to follow the strategy. Here’s the breakdown:
- CALL when the candles are moving above the EMA and the signal line of the oscillator leaves the oversold zone.
- PUT when the chart drops below the Moving Average and the DeMarker exits the overbought zone.
Lock in that expiration period from 3 to 5 bars.
To wrap it up, while the DeM is usually praised as the go-to for timing trend reversals, there are times when significant price movements follow signals but keep the trend going. Remember, don’t just rely solely on the DeM; combine it with other indicators to confirm or question the signals it's generating.
