Strategies – Pocket Option https://pocketoption.trading The online trading and investment platform Tue, 12 Nov 2024 11:32:17 +0000 en-US hourly 1 https://wordpress.org/?v=5.3.18 https://pocketoption.trading/wp-content/uploads/2020/01/cropped-983776_featured-300x300-1-32x32.png Strategies – Pocket Option https://pocketoption.trading 32 32 Conservative Catch Strategy: Slowly but Surely https://pocketoption.trading/conservative-catch-strategy-slowly-but-surely/ https://pocketoption.trading/conservative-catch-strategy-slowly-but-surely/#respond Tue, 12 Nov 2024 11:32:17 +0000 https://pocketoption.trading/?p=1326 The Catch Strategy is preferred by traders who choose conservative binary options trading.

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It is hard to remain a conservative under fast developing progress, but it can pay off. Trading digital contracts can be profitable if you use a conservative approach and proven tools for market analysis. The Catch strategy is based on combination of two popular indicators: ADX (Average Directional Index) and Parabolic SAR (Stop and Reverse).

The combination’s synergy helps traders more accurately determine the moment to buy a particular contract. If you are interested in test driving the strategy, you will find both technical tools in the Pocket Option basic set. Perhaps, you will try to apply the method after reading the article.

How to set up the indicators?

Before you start using the Catch strategy, it is important to set up your trading platform to use effective analysis for decision making. Here, we pay attention to the choice of assets, timeframe and charts to adapt the strategy to current market conditions.

It is preferable to choose assets with strong trends. The most successful results can be achieved when trading currency pairs, especially those with high volatility, such as EUR/USD, GBP/USD, USD/JPY, etc. You can also use shares of large companies or commodities (gold and oil). Try to stay away from with low volatility, since the strategy is focused on strong trends.

What about timeframes? There is not limitations, the Catch system can work on various frames. However, it works best on frames 5 minutes to 1 hour. Charts with a time interval of 5, 15 or 30 minutes allow you to better track trends and price changes, avoiding market “noise”, but at the same time allow you to make several purchases during a trading session.

For better analysis, it is recommended to use Japanese candlesticks as a chart. Candlestick charts provide a clear picture of price movement, showing both the beginning and end of the period, as well as extreme points (maximums and minimums).

Now it’s time to set up the tools to catch right signals for a digital contract for the rise or fall of the selected asset:

  1. ADX is used to measure the strength of the trend. It does not indicate the direction, but it helps to understand how stable the trend is. ADX values above 25 indicate a strong trend, below – a weak one. Use default settings.
  2. Parabolic SAR is used to determine the moment of trend reversal. The indicator is displayed on the chart as dots that follow the price. When the dots are below the chart, this is a buy signal, when above, it is a sell signal. Use default settings.

How to trade with the Catch Strategy

The system works on a combination of ADX and Parabolic SAR signals. The main idea is to open trades only when the strength of the trend is confirmed by the ADX indicator, and the direction of the trend is confirmed by the Parabolic SAR indicator.

The purchase of a call option occurs under the following conditions:

  • ADX shows a value above 25, which indicates a strong trend.
  • Parabolic SAR is located below the price, indicating an uptrend.
  • Confirmation: The price moves up, forming upward candles.

The purchase of a put option is carried out according to the rules:

  • ADX is above 25, which confirms the presence of a strong trend.
  • Parabolic SAR is above the price, signaling a downtrend.
  • Confirmation: The price forms consecutive lows and highs lower than the previous ones.

It is advisable to choose the expiration time for binary options within 3-5 candles from the selected time frame. For example, if you work on a chart with 15-minute candles, the expiration time should be about 45-75 minutes.

The Catch strategy will be a great help for traders who prefer conservative trading. Using the ADX and Parabolic SAR indicators together allows not only to determine the trend direction, but also to assess its strength, which significantly increases the chances of successful transactions. Remember the importance of risk management and discipline in trading options.

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The Duet trading strategy https://pocketoption.trading/the-duet-trading-strategy/ https://pocketoption.trading/the-duet-trading-strategy/#respond Wed, 09 Oct 2024 10:06:54 +0000 https://pocketoption.trading/?p=1316 The Duet trading system has all the parameters that allow you to effectively make a profit on binary options.

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Are you looking for a new effective trading strategy? What advantages do you want to get? What are you criteria for the effective strategy with stable profits on binary options? Well, you should consider two main parameters:

  • The trading strategy is suitable for any asset.
  • The trading strategy works for any time frame.
  • The trading strategy is universal, simple, and understandable.

The trading strategy for digital options should be as simple as possible. In electronic contract trading, transactions are completed quickly, with a short expiration period. A trader simply does not have time to understand complex algorithms and their signals. We will discuss the Duet Trading Strategy in the article because many traders tested and used it to get  good results.

Introduction to the Duet strategy

The strategy got its name because it is based on two Stochastics installed on the work area. Is it even possible? Yes, it can be done when we have different parameters. George Lane developed the Stochastic back in the 1950s. However, it never goes out of fashion and be found in almost any trading site like the Pocket Option platform.

Most traders prefer Japanese candlesticks for trading using the Duet strategy. However, you can choose anything you like. In terms of time frame for binary options, there is no point in choosing higher time frames, the M5 will fit perfectly.

Choose a volatile asset because the oscillators work extremely ineffectively with flats. Therefore, it is better to choose a currency pair that contains the American dollar or euro. For the Stochastic oscillator we use three parameters: the fast line %D, the slow line %K and deceleration. After you install two advisors on the workspace, set the settings of the first to 5, 3, 3, and the second to 14, 5, 3.

The setup is complete and can start trading.

How the Duet strategy works?

With the Stochastic, traders are guided by one of its signals: entering or leaving the “overbought/oversold” zones or crossing the fast and slow lines. In this case, we will use both signals simultaneously.

CALL option must be purchased when both Stochastics are in the zone from 0 to 20. In addition, on both oscillators, the fast line must cross the slow one from bottom to top.

PUT option is purchased when both indicators fall into the zone from 80 to 100, and their fast lines intersect with the slow ones in a lower direction.

The expiration period is set to 10 minutes.

As mentioned above, the Duet system is extremely effective in the binary options market. However, it is worth recalling that none of the existing strategies can provide 100% results. Therefore, do not forget about the rules of money management.

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The Rainbow Trading Strategy https://pocketoption.trading/the-rainbow-trading-strategy/ https://pocketoption.trading/the-rainbow-trading-strategy/#respond Wed, 25 Sep 2024 11:59:20 +0000 https://pocketoption.trading/?p=1308 The Rainbow binary options strategy is the simplest trading system that can bring stable profits.

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Modern Internet traders are very lucky. Unlike their “old” colleagues, who made transactions over the phone and analyzed the market by calculating complex mathematical formulas, today’s stock exchange specialists have a huge arsenal of ready-made tools.

We are talking about indicators that appear on your workspace literally in one click and are capable of predicting the future price direction of the selected asset with amazing accuracy.

However, there is another side to the coin. Due to the wide range of available tools, many traders make the mistake of placing 5 or more advisors on the chart. As a result, there is confusion in the signals and it all ends in making the wrong decision.

In this article we will look at the Rainbow system, which is based on only one indicator – Moving Average (MA). At the same time, it is capable of giving extremely clear signals for buying a digital option and is suitable for use on any time frame, which is important for this market.

Setting up a workspace for trading using the Rainbow strategy

It is worth noting that MA is one of the oldest instruments in financial markets. During its existence, this indicator has worked on all types of exchanges, from stock exchanges, as well as commodities and ending with cryptocurrency.

The calculation of this tool is very simple. In our case, a simple moving average will be used, which means that each new point of the line being constructed is the arithmetic average of closing prices for a certain period.

Based on the above formula, the conclusion suggests itself that the curved indicator line that appears on the chart quickly reacts to price changes and practically follows the movement of the main trend. It is not surprising that the tool is often used instead of a trend line.

But there is one more nuance: the speed of the indicator’s reaction to price changes depends on its period. The smaller it is, the faster the line reacts.

It is this principle that formed the basis of the Rainbow strategy.

To implement it, we will need to install three MAs on the chart with periods of 5 (lilac), 10 (blue) and 15 (yellow).

Based on the logic of the tool’s operation, it can be stated that during a stable trend, all three lines will move in the same direction, parallel to each other.

However, if a reversal is planned in the market and the trend begins to change, then the moving average with the shortest period, in our case 5, will be the first to react to what is happening. The strategy is based on this fact.

How to trade using the Rainbow system

Based on the above, the intersection of the junior line with a period of 15 MA may indicate the beginning of a change in the main trend. At the same time, crossing the senior line of the moving average with a period of 10 is an excellent signal to buy an option.

CALL contract is purchased when both lines have crossed MA 15 from bottom to top.

PUT contract is done in the case when both lines have crossed MA 15 from top to bottom.

Expiration depends on the timeframe you choose. But it should not be less than the time it took to construct three bars.

Despite its simplicity, the Rainbow strategy is capable of bringing stable profits on binary options. However, it is necessary to take into account that on lower timeframes the likelihood of a false signal appearing will be higher.

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The Double Cross Strategy https://pocketoption.trading/the-double-cross-strategy/ https://pocketoption.trading/the-double-cross-strategy/#respond Wed, 17 Apr 2024 12:26:58 +0000 https://pocketoption.trading/?p=1290 The Double Cross strategy is among the proven effective methods for purchasing profitable contracts on the binary options market.

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The binary options traders value the systems that provide not only the main signal, but also its confirmation. One of the best ways to design such a system is use at least two indicators whose signals in synchrony. The ideal scenario is to use one of the trending instruments installed on your chart and, along with an oscillator. A signal about price movement in one of the directions in such a combination of indicators is considered especially reliable.

This article will discuss an effective trading strategy “Double Cross” in the digital options market. The strategy is built on two popular advisors – MA and Stochastic, which you can find in the Pocket Option and other trading platforms.

The two central advantages of this strategy are its simplicity and efficiency. Impressively, the trading efficiency of the system reaches 90%. Moreover, it is suitable for almost any asset and can be used on the lowest time frames, which is most important for the binary options market.

How to set up parameters?

As mentioned above, the strategy is universal and works for all types of assets. It depends on the preference of the trader and the trading session.

Two Moving Averages. Even though it is recommended to set the timeframe between M1 and M15, we suggest M5 because it is  best suited for our purpose. On the one hand, transactions are completed quite quickly and with a short expiration period. On the other hand, indicators are less susceptible to market noise, which means the risks of making a mistake when buying an option are lower.

Now let’s move on to directly setting up the tools. Moving Average needs to be set to 2, use simple type and choose the 5 and 10 period. It is advisable to use different colors so that it is visually clear where is fast and where is slow MAs.

Stochastic. Taking into account the fact that we are working on lower time intervals, we configure it as follows: %K – 5, %B – 3, slowdown – 3. For higher time frames, the parameters are 14, 5 and 3, respectively.

How to trade using the Double Cross strategy?

Two moving averages act as an improvised trend line. When the trend is stable, they fit in its direction and move in parallel. Meanwhile, as soon as a reversal or correction is planned, one of the MAs (with a period of 5) will react to this event faster and cross the second moving average in the direction of the future movement. This signal will be used in the strategy.

Stochastic also has fast and slow lines. Their intersection in one of the directions acts as a similar signal.

The CALL option must be purchased after the lines on both indicators cross in the upward direction.

The PUT option is done when the lines cross from top to bottom.

The expiration period in the case of trading on the M5 timeframe will be 10 minutes.

Please note that Stochastic reacts to future price changes a little earlier than MA. This feature can also be used in trading, receiving a warning signal, and already preparing to buy a contract when it is confirmed.

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Intro to the Pinocchio Trading Strategy https://pocketoption.trading/intro-to-the-pinocchio-trading-strategy/ https://pocketoption.trading/intro-to-the-pinocchio-trading-strategy/#respond Tue, 20 Feb 2024 10:51:14 +0000 https://pocketoption.trading/?p=1280 The Pinocchio strategy will allow you to trade on the binary options market without using complex tools.

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When it comes to trading strategies used in financial markets, the first thing that comes to mind is complex systems using several technical indicators that are inaccessible to a novice trader. However, this is not entirely true.

Before the advent of such a type of chart as Japanese candlesticks, methods for making money in financial markets were indeed quite complex. Today, you can make a profit simply by observing the shape and position of the candle on the chart. Among traders, this trend even received a separate name “Candlestick Analysis” or Price Action.

It is worth noting that such a trading system is ideally suited for the electronic contracts market, as it allows you to make many transactions in one trading session.

In this article we will look at one of the models indicating a reversal of the current movement and called Pinocchio.

What are Japanese candlesticks?

In most cases, a candlestick formation is called a rectangle, the upper and lower parts of which follow the same line. The latter are called thorns or shadows.

The rectangle itself is called the body of the candle and it is formed during the time period selected by the user. For example, if the chart timeframe is M1, then each new candle will be formed for exactly one minute.

The candle body is the distance between the closing price and the opening price. If the first is below and the second is above, the candle is downward, and if vice versa, then it is upward. However, often the downward candle in the terminals is colored red, and the upward candle – green.

But that is not all. For example, the price could open, begin to rise, and then return and close below the opening price. In this case, a spike appears above the candle, indicating where the price was during the formation of the candle.

How to trade using the Pinocchio strategy?

Now we smoothly come to the most important thing. Let’s imagine a situation where the chart is moving upward, the candles are colored green, but after the last one closes, a spike has formed above it, significantly larger than the size of its body.

From this we can conclude that something prevented the upward impulse movement. Perhaps a large trader has fixed a position, or perhaps the chart has reached a psychological level or important news has come out. Be that as it may, this situation indicates a high probability of a market reversal.

CALL contract is done when a red candle with a long spike at the bottom appears on a downward movement.

PUT contract is done when a green candle with a long tail on top appears on an upward movement, as described above.

As for the name of the strategy, it just got it because of the long shadows or spikes. When Pinocchio lied in the fairy tale, his nose grew bigger. By analogy, when the market is about to reverse and leave traders with a loss, the spike at the last candle grows.

It is worth noting that price models’ action are a popular but very risky trading method. Therefore, be sure to adhere to the rules of money management.

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The “Three in One” Trading Strategy https://pocketoption.trading/the-three-in-one-trading-strategy/ https://pocketoption.trading/the-three-in-one-trading-strategy/#respond Thu, 08 Feb 2024 12:28:19 +0000 https://pocketoption.trading/?p=1272 The "Three in One" trading strategy is designed for traders seeking infrequent yet highly reliable binary options transactions.

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Engaging in electronic contract trading offers an exhilarating and profitable venture. Your primary task is to predict the price’s direction for the upcoming periods and acquire the corresponding option.

Nevertheless, there are instances where your trade might seem promising, yet the market takes a swift turn before the expiration, resulting in a sizable reversal candle. This often occurs when you enter a trade toward the end of the current surge or during a trend reversal.

On the flip side, there exist traders who exhibit surgical precision, initiating their positions right at the inception of an impulse movement, and confidently reaping their well-earned profits.

So, what’s their secret? It begins with a tried-and-true, dependable trading system. The article introduces the “Three in One” trading strategy, which not only helps you discern the current movement’s direction but also gauges its potential, providing valuable insights for your trading success.

Description of the strategy

This trading system is structured around three key indicators: Stochastic, RSI, and SMA (Simple Moving Average). The good news is that these essential tools come pre-installed in the Pocket Option broker trading platform.

To gauge the current movement’s potential and determine if it’s approaching its conclusion, we’ll utilize two widely recognized oscillators, aided by their overbought and oversold zones. Specifically, for the Stochastic oscillator, we’ll consider the range of 0-20 and 80-100, while for RSI, we’ll focus on the 0-30 and 70-100 ranges. Additionally, RSI incorporates a pivotal level of 50, signifying the strength of the ongoing movement.

The Moving Averages in this strategy assume the role of signal indicators. In this context, two Moving Averages are involved, and the crux of decision-making hinges on their intersection.

Setting up your workspace

In the “Three in One” strategy, consider the following key points.

As for asset selection, opt for an asset with medium to high volatility. This strategy performs poorly on charts that predominantly remain flat. Ideal choices include currency pairs or cryptocurrencies. You can select a timeframe spanning from 60 seconds to 15 minutes. This choice depends on your trading style and how frequently you’re willing to make contract purchase decisions.

Employ Japanese candlesticks or bar charts for analysis.

Indicator Settings:

  • RSI: Use the default settings with a period of 14.
  • Stochastic: Configure the parameters as 5; 5; 3.
  • Moving Averages: Assign a period of 10 for the first MA and 5 for the second.

Consider using distinct colors for the moving averages for enhanced clarity.

Trading using the “Three in One” strategy

Despite incorporating several indicators, the system remains remarkably straightforward and intuitive.

To initiate a CALL option, look for these specific conditions:

  • Stochastic emerges from oversold conditions and is trending upward.
  • RSI surpasses the 50 level but has not yet reached 70.
  • The 5-period MA crosses the 10-period MA in an upward direction.

Conversely, for a PUT option, you should consider the following conditions:

  • Stochastic moves out of overbought territory and trends downward.
  • RSI falls below the 50 level but hasn’t reached the 30 level.
  • The 5-period MA crosses the 10-period MA in a downward direction.

The expiration period is set equal to the time of formation of three bars.

When determining your trading course, the foremost signal is the crossover of the moving averages. This marks a significant turning point. Once this crossover has transpired, it’s vital to corroborate with the oscillators to gauge the movement’s potential.

Historical data suggests that this strategy boasts an impressive success rate, with a profit generated in over 90% of transactions. However, to secure a successful contract purchase, it’s imperative that all the conditions outlined above align seamlessly.

In conclusion, the “Three in One” strategy, with its systematic approach and focus on the interplay between moving averages and oscillators, holds promise for traders seeking reliable outcomes. While it doesn’t guarantee flawless results, it presents a well-structured framework for enhancing your binary options trading endeavors.

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Trading Strategy “Intersection point” https://pocketoption.trading/trading-strategy-intersection-point/ https://pocketoption.trading/trading-strategy-intersection-point/#respond Wed, 29 Nov 2023 11:19:12 +0000 https://pocketoption.trading/?p=1254 The “Intersection Point” strategy is a trader-friendly trading method that boost trading confidence and performance.

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There’s a common belief that trading digital contracts offers a simpler and potentially more lucrative alternative to other financial exchanges. It’s important to acknowledge that this notion holds some truth.

The primary allure of binary options lies in their capacity for frequent trading, coupled with the potential for substantial earnings. Here, profit isn’t contingent on how many price points have been traversed.

On the flip side, it would be misleading to assert that electronic contracts are categorically easier than Forex or other financial markets. Success in any domain of finance hinges on the presence of a well-crafted strategy.

This often leaves newcomers pondering: Where can one acquire such a system to kickstart their digital options journey? Fortunately, such methods do exist, and we’ll delve into one of them in this article.

The “Intersection Point” strategy, our topic of discussion, boasts several merits. Firstly, it harnesses the power of two indicators, bolstering the reliability of contract purchase signals. Secondly, it’s remarkably straightforward to put into practice, with no need for an in-depth grasp of the tools’ intricacies. One more advantage is that the IP strategy is good for lower timeframes, which makes such a system ideal in the binary options market.

How to set up a trading area?

To put the “Intersection Point” system into action, you’ll want to focus on a highly volatile asset like the EUR/USD or GBP/USD currency pair.

Set the timeframe to M5. According to the majority of traders, this particular time frame is ideal for binary options trading, as it offers frequent trading opportunities while being less risky compared to turbo options that last only 60 seconds.

For chart analysis, you can opt for either a bar chart or Japanese candlesticks.

In this system, we’ll be relying on two indicators, namely the trend Parabolic SAR and the Stochastic oscillator. You’ll find both indicators readily available in the Pocket Option terminal, and the best part is that you don’t even need to tweak their settings – the default configurations are perfectly suited for this technique.

How to trade with the “Intersection Point” Strategy?

The heart of this system is encapsulated in its very name, quite literally. Your main task revolves around observing the Parabolic points and the intersections of the Stochastic lines.

In this strategy, to initiate a CALL option, you should make your move when the fast Stochastic line crosses over the slower one from the bottom to the top, and concurrently, a Parabolic point forms beneath the candle or bar.

In contrast, for a PUT option, you’ll want to act when the blue Stochastic line crosses below the orange line, and simultaneously, a Parabolic SAR point takes shape above the bar.

Set the expiration period equal to the duration of two bars or 10 minutes.

This illustrates that certain strategies can be harnessed effectively even without an extensive understanding of trading. The “Intersection Point” technique is intuitive and accessible, making it well-suited for beginners.

However, it’s crucial to recognize that no trading system can promise a flawless 100% success rate. Consequently, it’s imperative not to disregard the principles of prudent money management, which means refraining from allocating more than 3% of your deposit to a single transaction.

In conclusion, the “Intersection Point” strategy offers a practical approach for trading binary options, especially for those new to the trading world. While it doesn’t guarantee foolproof results, when applied with disciplined risk management, it can be a valuable tool in your trading arsenal.

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The Fidelity Trading Strategy https://pocketoption.trading/the-fidelity-trading-strategy/ https://pocketoption.trading/the-fidelity-trading-strategy/#respond Thu, 02 Nov 2023 10:37:28 +0000 https://pocketoption.trading/?p=1234 The "Fidelity" strategy is the tool that can bring stable profits on binary options with minimal risks.

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The digital contracts market is often employed as a swift entry point into the realm of financial exchanges. This tool facilitates a multitude of short-term transactions with predetermined profits, eliminating the need to wait for prices to meet specific thresholds to achieve anticipated earnings.

Nonetheless, binary options carry substantial risks. As the losses on contracts are also predetermined, erroneous analysis can swiftly deplete your deposit. Therefore, most seasoned traders concentrate on a strategy that, while not yielding a high volume of daily transactions, effectively mitigates risks and, consequently, provides a steady income.

Additionally, it’s essential for traders to remain vigilant and continually refine their strategies. The digital contracts market is dynamic, and economic events and trends can shift rapidly. Staying informed about the latest market developments and adapting to changing conditions is crucial for long-term success. Professional traders often engage in thorough research and analysis, combined with prudent risk management, to ensure their investments remain on a stable and profitable trajectory. By combining experience, knowledge, and adaptability, they can navigate the complexities of this financial landscape with confidence.

To stay updated, you should read about The Fidelity Trading Strategy, because it delivers 90% success rate on binary options. The strategy is based on two popular indicators Envelopes and SMA, which you can easily find among the pre-installed tools in the terminal from Pocket Option.

How Set Up a Screen for Trading? 

It’s important to note right away that Envelopes, on their own, can offer highly accurate signals for entering contracts. This makeshift price channel bears a strong resemblance to the Bollinger indicator. However, it boasts a much higher sensitivity to market price fluctuations, providing us with an advantage in short-term trading.

In this strategy, moving averages serve as a complementary and validating tool, enhancing its reliability.

In essence, the “Fidelity” system can be applied to trade various assets, including currency pairs, stocks, commodities, and even cryptocurrencies. Both indicators excel in markets with varying levels of volatility.

As for the timeframe, opting for a 5-minute interval is recommended. This choice is driven by the fact that 60-second trading is particularly susceptible to market noise. Conversely, selecting longer timeframes wouldn’t be as fruitful, as signals in this method are not as frequent.

In keeping with convention, Japanese candlesticks are used for chart analysis.

Indicators, as it was already mentioned above, you will find in the list of standard ones. However, when installing them on the working area, you need to change the parameters to those recommended by the authors of the strategy.

In Envelopes it is necessary to choose the period 14 and deviation 0.05. The recommended parameters are ideal for the M5 timeframe. If you decide to trade on longer intervals, you should reset the values for the indicators.

How to trade on the Fidelity Strategy?

In terms of the actual trading process, you may have already deduced that the signal occurs when the price moves outside the Envelopes. Simultaneously, the chart breaking through the moving average serves as a validation for this signal.

Consequently, a CALL option should be purchased when the candlesticks are positioned below the lower Envelopes level and cross the SMA from the bottom to the top as they return to within the channel.

To initiate a PUT option, you should make the purchase when the candlesticks have crossed above the upper channel boundary and subsequently cross the SMA from top to bottom during the return.

The expiry time is fixed at 15 minutes.

By adhering to the guidelines of the “Fidelity” strategy, you can consistently generate profits in the electronic contracts market. This approach has garnered favor among numerous traders who prioritize risk management and view binary options as a dependable income stream.

In conclusion, the “Fidelity” strategy, with its well-defined rules and controlled timeframes, offers a viable pathway for those seeking a stable and reliable source of income in the world of electronic contracts. It serves as a prudent choice for traders who value risk mitigation while engaging in the binary options market.

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The Triple Power Trading Strategy https://pocketoption.trading/the-triple-power-trading-strategy/ https://pocketoption.trading/the-triple-power-trading-strategy/#respond Wed, 20 Sep 2023 13:23:37 +0000 https://pocketoption.trading/?p=1217 The "Triple Power" strategy is one of the most reliable trading systems on the binary options market.

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Trading financial options come with one of two payoff options if the contract is held until expiration: a fixed amount or nothing at all. That’s why they’re called binary options – because there is no other settlement possible. The premise behind a binary option is a simple yes or no. Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest  ways to trade.

Perhaps, because it is very simple, most people think that trading binary options means easy profits and no need for special training. As a matter of fact, they are partly right.

Some risky traders conduct their transactions in a “bet” style hoping to get rich by chance. Even in such a case, it is recommended to use some basic rules like the Martingale method, probability theory and mathematical expectation. Risky traders like to make dozens of small deals during one trading session.

Professional traders belong to a different category of “informed decisions trading”, they trade on binary options as the professionals do on stock and commodities markets. The big question is if it is possible to trade with a well-defined trading strategy without  Martingale?

The answer is yes, but you need to know tools for technical analysis because the binary options market does not differ from any other market. It means that you can read and analyze to make informed decisions. Read the description of Triple Power Strategy to learn more about technical analysis in binary options trading.

Introduction to the Triple Power Strategy

The system got its name for a reason: it is based on three RSI (Relative Strength Index). Everybody knows that three is better than one. However, some new traders can ask: “What is special in using three RSI when they generate the same signals?”

In fact, three indexes will be used with different periods. The Triple Power Strategy uses three RSI to make a powerful filter for weeding out false signals. Let us tell you more about another indisputable advantage of the triple power – you can use this strategy at any time frame without changing the default parameters.

For the settings of three RSIs, you set three periods to values of  5, 14 and 21. When you are done, you will see three almost identical oscillator windows with different signal lines.

How to trade with the “Triple Power” strategy

Congratulations! You are set up for trading with the Triple Power Strategy. Before you start, you should learn a couple of tricks.

First of all, do not expect frequent signals. You should understand that trades will appear very rarely. Sometimes a day may pass without any signal, especially if you trade on a single asset. It means that you do not need to choose the high and medium timeframes. M15 is the best way to work with this system.

Secondly, it is possible to trade on any asset. The strategy does not depend on volatility and time of day. Considering that signals in transactions occur quite seldom, it is possible to track 3-4 assets simultaneously.

Do not be discouraged because the rarity of the signal is more than compensated by the high accuracy. Almost every trade will bring you a profit, with the exception of variants with impulse speculative moves. Therefore, it is not recommended to use this strategy at the time of news releases.

The CALL option is done when all three signal movings are out of oversold conditions.

The PUT option is done when the signal lines on the three RSIs have left the overbought zone.

The recommended expiration is a formation of 3-5 candles. 

Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, the advantages, and the disadvantages of these products, and which companies are legally authorized to provide binary options to traders.

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The Doubling Trend Strategy https://pocketoption.trading/the-doubling-trend-strategy/ https://pocketoption.trading/the-doubling-trend-strategy/#respond Thu, 22 Jun 2023 10:07:34 +0000 https://pocketoption.trading/?p=1211 The Doubling Trend Strategy is an advanced binary options trading system with high profitability.

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There are many different trading systems available for binary options, all of which can be reduced to analyzing candlestick patterns or overlaying special tools on a price chart to help analyze the market and determine the price direction. Often traders try to trade in the direction of the main trend, which, in their opinion, is associated with lower risks. Meanwhile, there are more advanced and comprehensive ways of trading however here you need to be an expert not to buy “a ticket to the Titanic” – a contract at the end of the current movement.

How to set up the Working Area

Fortunately, the Pocket Option broker offers a wide variety of tools for technical analysis. If you are a registered user of the platform, you need to impose graphical lines directly on the indicator, so you can do it in MT5.

For trading with Doubling Trend, you need to choose any volatile asset and set up a timeframe of 1 to 5 minutes, as well as the RSI oscillator. You will find it in the menu Insert/Indicators/Oscillators.

When activated, the tool appears on the working area of your screen. Let us remind you that its signal line performs oscillations, just like the price chart. Moreover, they coincide with each other, but the RSI is slightly ahead, which is the point of this technique.

It is recommended to trace the breakthrough of the trend line on the oscillator. To do so, construct the line by connecting the maximums or minimums of RSI fluctuations (depending on its direction).

You can use the tool “draw the trend line” found in the upper area of MT5, right above the timeframe selection.

How to trade with the Doubling Trend

Congratulations: you are set up and you can start trading. When it’s a good time to buy? You will know that answer if you know best signals the end of the current trend and its reversal? The right answer is a break of the trend line, which in our case is located in the RSI window.

Therefore, the CALL option is bought when the resistance line is broken.

The PUT contract is done with the support line is broken.

The expiration time should not be lower than the time of formation of 4 candles. Otherwise, your trade may close on the retest of the price of the trend line.

In conclusion, we want you to remember some basics. A double top is a bearish reversal trading pattern. It is made up of two peaks above a support level, known as the neckline. The first peak will come immediately after a strong bullish trend, and it will retrace to the neckline. Once it hits this level, the momentum will shift to bullish once again to form the second peak. A double bottom is a bullish reversal trading pattern. It is made up of two lows below a resistance level which – as with the double top pattern – is referred to as the neckline. The first low will come immediately after the bearish trend, but it will stop and move in a bullish retracement to the neckline, which forms the first low.

Perhaps, the Doubling Trend strategy may seem something unusual and out of the ordinary for many traders, however expert traders know that its signals are more accurate than many classical trading systems.

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