Let me break it down for you: the real deal with broker options? You don’t have to worry about how far the price moves. It's not about the distance, folks—it's all about timing your trades. I’ve been developing several short, medium, and long-term strategies, and let me tell you, medium-term strategies are super popular right now.
The scoop on medium-term trading? It’s about preparing your moves and planning your positions a few days in advance. I take into account various factors, blending some fundamental analysis with a bit of technical indicators. You can do it, too!
Now, if you want to make some cash, the sweet spot is trading within a medium timeframe of 30 minutes to 4 hours. Why? First off, it’s way less intense and avoids that turbo chaos. With these mid-range timeframes, you’re in control, making relaxed and informed decisions. Plus, you can cut through a lot of that annoying market noise.
In this piece, I’m going to share the medium-term Open Way strategy. It's based on clear signals from three indicators. Whether you're a beginner or a seasoned trader, this strategy has got your back while trading on the PocketOption platform designed for innovative trading strategies.
Getting Your Indicators Ready for the Open Way Strategy
First up, we use three indicators: MA, Alligator, and RSI. The moving average (MA) smooths out the price action, filtering all that noisy fluctuation. The Williams Alligator? That’s a tool that employs smoothed moving averages. Lastly, the Relative Strength Index (RSI) measures the strength of recent price movements, letting you know if the market is overbought or oversold.
Let’s start with a candlestick chart on the H1 timeframe. Here’s how to set it up:
- Set the MA period to 200;
- Keep the RSI at the default 14 and change that “OVER” from 30/70 to 20/80;
- Stick with the default settings for Alligator (13, 8, 8, 5, 5, 3).
Trust me, those settings are reliable and have been thoroughly tested—no guesswork here. The 200 MA acts as your trend line, while the RSI shows trend strength, and the Alligator indicates how long the trend's likely to stick around.
Trading the Open Way Strategy
When it’s time to make a move, watch for these signals:
- CALL when the trend is moving upwards (candles above the MA 200), the price hits a new peak, the RSI line isn't in the overbought zone yet (above 80), and the Alligator’s ready to go (all lines moving in the same direction without crossing).
- PUT when things turn around (minus the Alligator): the trend’s heading down, price is below the previous peak, the RSI's above 20, and the chart is sitting under the MA 200.
And don’t forget—set the expiration at least 2 hours out!
The Open Way strategy combines three technical indicators to create a robust trading plan, setting you up to catch strong signals for opening trade positions.
