Hey there, everyone! Timeless strategies are where it's at—they're designed to withstand tough times and those slow moments when chances are as pretty rare as a unicorn. You don’t need to hit every target here; it’s about sticking in the game so when a great opportunity comes up, you can jump on it.
Let me introduce you to the Old School Strategy—this gem has made millions for traders around the globe. We’re talking classic heavyweights here: Bollinger Bands and Stochastic indicators. When you combine these, you’re boosting your chances and shifting the odds in your favor.
The PocketOption broker for diverse trading needs platform is your main hub, serving up all the tools and indicators you need to rock this old school strategy. Install those indicators on your chart and adjust the settings—you're all set to roll!
Setting Up the Chart and Indicators
For that Old School feel, stick to timeframes of about 3 to 5 minutes. Turbo options? Nah—those can lead you to a mess of false signals. The strategy is all about making moves often, buying and selling contracts to cash in on profits.
You’ll want to add “Japanese Candles” and keep an eye on the Bollinger channel to track price movements.
Bollinger Bands act as your price channel—watch those extremes and overlook the median like it's yesterday's news. The Stochastic? It’s your buddy for confirming signals—it helps you identify exits from overbought and oversold zones!
When you’re using Stochastic on shorter timeframes, make sure to set these parameters: period % K – 5, period % D – 3, deceleration – 3.
Set your Bollinger Bands with these specs: period – 20, deviation – 2.
Congratulations, fellow trader! Your chart's all set, your indicators are firing, and the parameters are just right! Time to dive into trading options using the Old School strategy.
Trading Contracts with the Old School Strategy
Here’s the thing—the main signal from Bollinger Bands is all about breaking out of that price channel. When that candle closes outside the indicators, you've got a breakout happening.
Keep an eye on the Stochastic to spot exits from the overbought zone (level 70) for those downtrend contracts and the oversold zone (level 30) when it’s uptrend time.
Here’s how to play it:
- CALL option: When the candle closes below the lower boundary of the Bollinger Bands, and the next candle bounces back. Plus, the fast Stochastic line crosses level 30 from the bottom up. That’s your signal!
- PUT option: When the candle closes above the upper edge of the Bollinger Bands, and the next candle pulls back. Then, watch for the fast Stochastic line crossing level 70 from top to bottom.
In both situations, you’re taking action on the next candle after the bounce inside the channel.
For expiration, aim for 9 to 12 minutes or about 3-4 candles if you’re on that 3-minute timeframe.
The Old School strategy is legit—it works like it claims! It's based on principles that are “as old as trading itself.” But don’t overlook the teamwork of these indicators; they help you cut out over 70% of those annoying false signals.
Fill your chart with support and resistance levels, and you’ll be back in the discretionary trading zone because prices can flip at any moment. Whether you stick with timeless strategies or focus on specific scenarios, keep in mind that the Old School methods offer great diversification, align with long-term trends, manage risk, and require discipline.
